The Bon-Ton Stores Inc reported results for the third quarter of fiscal 2006 ended October 28, 2006. As previously reported, the Company acquired the Northern Department Store Group (“Carson's”) from Saks Incorporated on March 5, 2006.
For the third quarter of fiscal 2006, the Company reported a net loss of $10.9 million, or $0.66 per share, compared to a net loss of $6.3 million, or $0.39 per share, in the third quarter of fiscal 2005.
The third quarter of fiscal 2006 includes an income tax charge of approximately $0.10 per share relating to a $1.7 million reduction in the income tax benefit associated with tax planning strategies initiated by the Company in the third quarter. The strategies are expected to reduce the Company's effective income tax rate going forward.
Bud Bergren, President and Chief Executive Officer (CEO) commented, “We are pleased with our third quarter results and our progress in integrating the Bon-Ton and Carson's operations, as we succeeded in meeting key milestones during the third quarter: completed Phase I of the systems integration and a significant portion of Phase II, permitting a single view of our operations and reducing dependency on the Transition Services Agreement with Saks Incorporated; less intense discounting in the Company's promotional activity from the prior year period at the Bon-Ton/Elder-Beerman stores through the implementation of a common marketing/advertising calendar."
"While this strategy negatively impacted sales, gross margin rate improved; improved our inventory position for the fourth quarter with fresh merchandise assortments, as early selling afforded us the opportunity to replenish best sellers and leading fashion trends; substantially completed the integration of the two companies since the acquisition of the Carson's stores in March 2006; and controlled integration expenses to plan.”
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