Bon-Ton shares up 23% despite wider loss

Bon-Ton Stores Inc. reported a slightly wider second-quarter loss today, but the York, Pa.-based department store operator raised its outlook for the year, sending its stock soaring.

Late this afternoon, its shares jumped 95 cents, or 23.46 percent, to $5. The stock earlier hit a new year high of $5.70. It has ranged from 76 cents to $5.70 over the last year.

The department store owner recorded a loss of $34.8 million, or $2.04 per share, in the three months ended Aug. 1. That compares with a loss of $33.8 million, or $2.01 per share, a year earlier.

Revenue fell 10 percent to $625.3 million from $694.9 million.

Same-store sales fell 9.8 percent in the quarter. Same-store sales, or sales at stores open at least a year, are a key measure of retailer performance, because it measures growth at existing stores rather than from newly opened ones.

The company raised its 2009 estimate to a loss of $2.50 per share to $3.70 per share. The retailer previously forecast a loss of $3.40 to $4.30 per share.

Bon-Ton said its improved outlook is due to better-than-expected control of costs and inventory management.

It also said gross margins were up and general corporate expenses fell.