QUOTE AND NEWS
Benzinga  Aug 21  Comment 
Bon-Ton Stores (NASDAQ: BONT) recovered drastically from its six percent tumble in Thursday's pre-market trading, following the company's disappointing second quarter earnings. Shares were up more than 12 percent as the department store...
TheStreet.com  Aug 21  Comment 
NEW YORK (TheStreet) -- Shares of The Bon-Ton Stores Inc. are lower by -0.55% to $9 in pre-market trading on Thursday, after the company reported a net loss for the 2014 second quarter of -$36.2 million, or -$1.86 per diluted share, compared...
Benzinga  Aug 21  Comment 
Shares of The Bon-Ton Stores (NASDAQ: BONT) tumbled more than 6% in pre-market trading after the company reported a wider-than-expected second-quarter loss and lowered its profit forecast for the full year. Bon-Ton Stores now projects full-year...
DailyFinance  Aug 21  Comment 
The Bon-Ton Stores, Inc. (NASDAQ:BONT) today reported operating results for the second quarter of fiscal 2014 ended August 2, 2014. Comparable store sales in the second quarter of fiscal 2014 increased 1.6% compared with the...
Forbes  Aug 5  Comment 
On August 25, 2014 Kathryn Bufano will join The Bon-Ton Stores Inc. in York, Pennsylvania as President and Chief Executive Officer. She is succeeding Brendan Hoffman, who decided not to renew his three-year contract and was helpful in attracting...
TheStreet.com  Aug 1  Comment 
NEW YORK (TheStreet) -- Shares of The Bon-Ton Stores, Inc.  are surging 6.24% to $9.88 today after announcing a new president and CEO. Kathryn Bufano of Belk Inc.  replaces Brendan Hoffman, who had said in March that he would not renew his...
SeekingAlpha  Jul 24  Comment 
By Hale Stewart: (click to enlarge) The chart above is a weekly chart of the Bon-Ton Stores (NASDAQ:BONT). Going back about a year and a half, the $9-10 price range has provided tremendous support for the stock. The stock has also had...
TheStreet.com  May 22  Comment 
NEW YORK (TheStreet) -- Bon-Ton Stores  stock is gaining Thursday despite reporting a wider-than-expected net loss and revenue below analysts' estimates over its first quarter. By midday, shares had added 4% to $11.06.  Over the three months...
DailyFinance  May 22  Comment 
The Bon-Ton Stores, Inc. (NASDAQ:BONT) today reported operating results for the first quarter of fiscal 2014 ended May 3, 2014 and reaffirmed its earnings guidance for fiscal 2014. Total sales and comparable store sales...
TheStreet.com  Mar 24  Comment 
NEW YORK (TheStreet) -- Bon-Ton Stores finished up 8.2% to $11.79 on Monday. The retailer benefited from an upgrade by Zacks Equity that moved the stock to a "strong buy" rating from a "hold".The York, Pa.- based retailer has seen its stock...




 
TOP CONTRIBUTORS

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]

Competition

  • 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.

References

  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
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