Benzinga  Nov 19  Comment 
Kirkland's, Inc. (NASDAQ: KIRK) tumbled 26.74 percent to $14.85 after the company reported downbeat Q3 earnings and lowered its FY16 earnings forecast. Bon-Ton Stores Inc (NASDAQ: BONT) shares fell 23.74 percent to $1.51. Bon-Ton Stores...
MarketWatch  Nov 12  Comment 
Bon-Ton Stores Inc. will open its doors at 5 p.m. on Thanksgiving day to launch in-store Black Friday sales, the company said in a statement. Bon-Ton Stores include Bon-Ton, Boston Store, Bergner's and Carson's. In-store doorbusters will be good...
Benzinga  Nov 3  Comment 
The Bon-Ton Stores, Inc. (NASDAQ: BONT) today announced it has extended its private label credit card program agreement with Alliance Data Systems Corporation's (NYSE: ADS) Ohio-based card services business, a premier provider of branded...
Benzinga  Oct 21  Comment 
The Bon-Ton Stores, Inc. (NASDAQ: BONT) today announced it will close its Elder-Beerman stores in the Huntington Mall in Huntington, West Virginia and the Lima Mall in Lima, Ohio. The Company will not renew these leases, which terminate January...
Benzinga  Sep 1  Comment 
Bon-Ton Stores Inc (NASDAQ: BONT) shares are up by more than 33 percent since August 25, although they have lost 46 percent year-to-date. Imperial Capital’s Mary Ross Gilbert maintained an Underperform rating for the company, while reducing...


Bon-Ton Stores (NASDAQ: BONT) are department stores that sell clothing and accessories for women, men, and children. BONT stores are concentrated in the Northern U.S., with 278 stores in 23 states. Due to its domestic exposure, the firm is at risk to economic conditions in those regions, which are diversified by international competitors such as Macy's Inc. (M). Because of this, BONT made a profit in the past fiscal year for the first time in three years, and its success is sustained by the popularity of private label brands.

Business Overview

During the past fiscal year (2010), Bon-Ton stores made a profit for the first time in the past three years.[1] As U.S. consumer confidence increases, Bon-Ton should continue to see positive income into fiscal 2011.

Trends and Forces

Bon-Ton Reliant on Northern U.S. Economy

Bon-Ton stores are concentrated in the Northeastern, Midwestern and upper Great Plains states. If BONT fails to expand outside of the Northern U.S., it may face systemic risk factors not seen by competitors Macy's Inc. (M) and J.C. Penney (JCP), which have several stores outside of the Northern U.S.

Increases in Commodity Prices Will Raise Clothing Retailer Prices

Cotton consumption exceeded cotton production for the fifth year in the row, making cotton prices increase by 80.5% from last year.[2] [3] Natural disasters also severely damaged crops in many large cotton producer countries, such as China, India, and Pakistan. This led to decreases in cotton exports from these countries and increases in cotton imports as these countries sought to supplement their supply of cotton. [4][5] With limited cotton supplies and rising prices, retailers will either have to absorb these higher material costs, restructure the composition of their clothing to have less cotton, or pass these higher costs to its consumers. Higher clothing prices or lower quality clothing could discourage consumer spending, resulting in decreased net sales. However, adult or teen clothing retailers may not be too adversely affected as their clothing (which is usually 30-40% cotton based) has more flexibility in their composition and thus, costs. In addition, raising commodity prices in other areas will also raise costs for retailers. While premium price and established brands may be able to pass their higher costs to their consumers, value based companies may not fare as well and may suffer from lower profit margins.[2]


  • Macy's Inc. (M) Macy's department stores sell similar products as Bon-Ton, but Macy's has stores located outside of the Northern U.S.
  • Dillard's (DDS) Like BONT, Dillard's is a regional department store chain.
  • Kohl's (KSS) Kohl's department stores sell more conservatively-priced apparel.
  • J.C. Penney (JCP) Like Macy's, JCP sells similar products as BONT at locations all over the U.S.


  1. BONT 2010 10-k
  2. 2.0 2.1 http://seekingalpha.com/article/238731-more-evidence-of-inflation-retailers-report-escalating-commodity-prices
  3. Gap, Wal-Mart Clothing Costs Rise on ‘Terrifying’ Cotton Prices
  4. http://www.thegovmonitor.com/world_news/asia/recession-drought-hail-reduce-cotton-acreage-in-china-12256.html
  5. CNN Money - Cotton Shortage Could Inflate Clothing Prices
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki