The Bon-Ton Stores Inc. beat fourth-quarter earnings projections and, although results weren’t strong enough to pull it into the black for the year, the department store expects to return to profitability for 2013.
Net income dipped 4.8 percent in the fourth quarter to $74.4 million, or $3.71 a diluted share, from $78.2 million, or $4, a year ago. Profits came in 14 cents better than the $3.57 analysts projected. Shares of the company jumped 5 percent to $12.50 Tuesday.
Revenues for the 14 weeks ended Feb. 2 inched up 2.5 percent to $1.03 billion from $1.01 billion as comparable-store sales rose 1 percent. The most-recent quarter benefited from one additional week versus the year-ago period.
Brendan Hoffman, president and chief executive officer, told analysts on a conference call the company had a “more balanced merchandise assortment” and inventories in line with its core customer base.
Sales in shoes, men’s tailored apparel and furnishings and cosmetics outpaced the company average. Bon-Ton added Coach and Michael Kors to its offerings in November and plans to continue to bring on new vendors this year.
Like most retailers, the company is working hard to figure out the impact of the digital world.
“Our e-commerce business continues to show outsized growth,” Hoffman said. “We have nearly tripled our investment in digital marketing and it is clearly paying dividends, both for e-commerce sales and as a way to drive customers into the stores.”
For the full year, Bon-Ton posted net losses that widened to $21.6 million, or $1.16 a share, from $12.1 million, or 67 cents, a year earlier.
This year, the department store is projecting earnings of 40 cents to $1 a share with a comp sales gain of 2 percent to 3.5 percent.
The company operates in 24 states under seven nameplates, including Bon-Ton, Bergner’s, Boston Store, Carson’s, Elder-Beerman, Herberger’s and Younkers. On Hoffman’s to-do list is to better tailor assortments to local markets, a strategy that Macy’s Inc. has emphasized as a key component of its recent success.
“As we have consolidated into one central office in Milwaukee, we have lost the appreciation of what makes a customer in Fargo, N.D., different from one in Allentown, Pa.,” Hoffman said. “We need to develop localization as a core competency, both to unleash the potential of our current store base and give us a lane to open new regions that can increase our overall store count.”
“What he has done at Vuitton is really exceptional,” said @gameofthrones’ actress Gwendoline Christie on @mrkimjones’ final show for @louisvuitton. “He has rebooted luxury in terms of making it commercial, viable and contemporary. And most importantly artistic. He has never compromised his artistic vision for the sake of commodity.” (📷: @zefashioninsider)
After seeing a demand for men’s wear from its customers, British contemporary women’s wear label @ariesarise has added a men’s wear component and will launch a unisex collection with @mrporterlive. The 20-piece collection includes jackets, denim, logo T-shirts and more with deconstructed ‘90s vibes. Set to launch on January 18, you can shop the pieces on Aries’ website and on mrporter.com. #wwdfashion
“And so spending so much time with a character who thinks like that, inevitability you try and analyze yourself and go back and think about your own demons and dark chapters that you had in your life,” says @thedanielbruhl of his role in TNT’s “The Alienist.” The show, set in the Gilded Age of New York, also stars Dakota Fanning and Luke Evans. Head to WWD.com to read about how 39-year-old Brühl prepared for the role and why he thinks the show is so relevant to today #wwdeye ( 📷: @Eriktanner)
Now that Celine Dion’s collection has topped $10 million in sales, the pop superstar, fashion icon and newly-minted industry player is eyeing growth in Asia. Read the full report by @tiffanyap, link in bio. #wwdnews #celinedion
“My personal philosophy to beauty is paying attention to oneself. I love to be outdoors, lots of fresh air, trying to take care of yourself as best you can. I always notice that comes through,” says Felicity Jones, the global face of @shiseido-owned @cledepeaubeauteus, which launches today. Head to WWD.com to read more about the actress’ love for beauty and how she prepared for her new role in “The Basis of Sex,” playing the young Ruth Bader Ginsburg. #wwdbeauty (📷: @dandoperalski)
Among the familiar faces at @off____white’s show was a surprise figure: Japanese artist @takashipom, pictured here on Wednesday morning. Other show-goers included @jerrylorenzo, who spoke about his upcoming project: a @nike collaboration for back to school, with designs inspired by his childhood on the West Coast. Sitting in the front row were Future, Don Crawley, @miguel and more. See the rest of the photos on WWD.com #wwdeye (📷: Stephane Feugere)
According to @laurentsai, former “Terrace House: Aloha State” cast member, she didn’t know she was auditioning for the Japanese version of “Real World.” “I was telling a couple of my friends and someone’s like, ‘That sounds a lot like Terrace House.’ I was like, ’No it can’t be.’” Turns out, it was. But Tsai isn’t just a reality star — she’s an illustrator who has worked with Starbucks Japan and most recently, she’s dipping her toes into the fashion world. Head to WWD.com to read about her time on the show, modeling and her art. #wwdeye (📷: @danieldorsa)
More changes are coming to New York Fashion Week: Beginning with the spring 2019 collection, @alexanderwangny will move his New York show to June from September, adopting a biannual schedule with collections shown in June and December. Additionally, the @cfda is planning for an official summer/winter fashion season taking place as soon as June and December 2018. Read more about the upcoming changes on WWD.com. #wwdnews #wwdfashion (📷: @slovekinpics)