Christopher & Banks Q2 Loss Narrows

(RTTNews) - Specialty women's apparel retailer Christopher & Banks Corp. (CBK) on Tuesday reported a loss for the second quarter that narrowed from last year on slightly higher revenues, an increase in same-store sales, and lower costs and expenses. Loss per share for the quarter was narrower than analysts' expectations, while revenues missed their estimates.

LuAnn Via, president and CEO of Christopher & Banks, said, "We were pleased that for the quarter we were able to maintain our positive momentum, achieve solid financial results in a difficult retail environment and deliver our fifth consecutive quarter of positive same-store sales comps. We also exceeded our gross margin expectations and achieved our operating objectives."

Plymouth, Minnesota-based Christopher & Banks' second-quarter net loss narrowed to $265 thousand or $0.01 per share from $2.20 million or $0.06 per share in the year ago quarter. The prior-year quarter's result included a non-cash credit related to restructuring charges of $4.5 million or $0.13 per share.

On average, three analysts polled by Thomson Reuters expected the company to report loss of $0.02 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter edged up less than 1 percent to $104.23 million from $103.44 million in the year-ago period, but missed analysts' consensus revenue estimate of $105.37 million.

Same-store sales for the quarter increased 7.7 percent, compared to an 8.9 percent increase in the same period last year. During the quarter, the company operated an average of 8.8 percent fewer stores than during the comparable period last year, reflecting its store rationalization program.

Total costs and expenses declined to $104.23 million from $105.60 million in the year-ago period.

Looking ahead to the third quarter, Christopher & Banks expects same-store sales to increase in the mid-single digit range, compared to an increase of 13.6 percent in the prior-year period. The company expects average store count to be down 7.2 percent, compared to last year.

For fiscal 2013, Christopher & Banks now projects average store count to be down 8.2 percent, compared to the prior-year period. Earlier, the company projected average store count for the year to be down 8 percent compared to the prior year.

The company now expects to open six outlet stores, two new missy, petite and women or MPW stores and to convert twenty-four existing stores to twelve MPW stores. Previously, the company said it expects to open five outlet stores, two new MPW stores, and to convert twelve existing stores to six MPW stores.

For the three-year period beginning with fiscal 2014, Christopher & Banks forecasts annual comparable store sales growth in mid-single digits, annual square footage growth of 2 percent to 3 percent, and gross margin expansion of an additional 300 to 400 basis points.

CBK closed Monday's trading at $5.89, up $0.36 on a volume of 459,600 shares.