US fashion, cosmetics and lifestyle retailer The Bon-Ton Stores saw net losses negatively triple in the third quarter of fiscal 2015.
In the 13-week period ending 31 October, the company made a net loss of $34m compared with $11m in the same period in 2014. On top of this, sales were hit hard on a sequential basis; comparable store sales dropped 2.6% in Q3. This figure followed the 1.3% sales knock it took in Q2.
Speaking about the key factors behind the company’s poor innings, Kathryn Bufano, President and Chief Executive Officer, said: “Clearly, our third quarter results were challenged as sales were pressured by unseasonably warm weather, which significantly impacted our cold-weather classifications and by continued weakness in overall traffic trends.”
However, Bufano also considered the positives and added: “Customers strongly responded to our expanded brand offerings and we also saw sustained momentum in certain core categories.”
Looking ahead, Bufano acknolwedged that she did not predict any “major changes” in the retail environment any time soon. However, the company is planning to push ahead with process improvements and cutting expenses; The Bon-Ton Stores has plans to make roughly $35m in annual savings in fiscal 2016. In October, The Bon-Ton Stores announced that it would be closing two of its Elder-Beerman stores and one of its Bon-Ton stores in early 2016. The closings were said to affect more than 150 employees, who were not guaranteed to be repositioned elsewhere.
