Home / Knowledge / News / Apparel/Garments / Christopher and Banks experiences wider Q2 loss
Christopher and Banks experiences wider Q2 loss
23
Sep '11
Christopher & Banks Corporation announced preliminary results for the fiscal second quarter ended August 27, 2011 as follows.

For the fiscal 2012 second quarter:
• Net sales are expected to be $96.2 million, as compared to $101.3 million in the same period last year. Comparable store sales declined 8%.
• Gross margin is expected to be in the range of 28.3% to 28.9%, as compared to 35.3% in the same period last year.
• Operating loss is expected to be in the range of $12.9 million to $13.5 million for the second quarter of fiscal 2012.
• Net loss per share is expected to be in the range of $0.37 to $0.39, which incorporates an expected tax provision of approximately $0.1 million. Adjusted for a normalized tax rate of approximately 40%, net loss per share would be in the range of $0.22 to $0.24.

Larry Barenbaum, President and Chief Executive Officer, commented, “Our second quarter performance did not meet expectations and as a team we are disappointed with the results. We are confident that our merchandise assortment is moving in the right direction, as customers were willing to pay higher prices on select items; however, the price increases we instituted were too aggressive for much of the assortment and as a result impacted the sell through rate.

Price appears to be less of a factor when the item is distinctive, such as unique prints and novelty details and finishes, and also offers versatile wardrobe options. However, not enough of the assortment reflected these characteristics. During the quarter, we increased our promotional activity in an effort to drive transactions and clear slower moving product, resulting in increased merchandise margin pressure. In addition, we held to our accelerated clearance markdown cadence in order to mark inventory out-of-stock on a more timely basis. We remain committed to our strategy of evolving our product offerings. We have acted quickly to determine what adjustments we can make to our merchandise assortment and pricing strategy going forward to better meet her needs and achieve our goals.”

Balance Sheet
The Company expects to end the second quarter with cash, cash equivalents and investments of approximately $95.8 million and no long-term debt. Total inventory at August 27, 2011 is expected to be $53.7 million, as compared to $40.1 million at August 28, 2010. Approximately $4.2 million of the increase relates to increased inventory in-transit at the end of the second quarter resulting from the timing of merchandise receipts and a shift in payment terms for a few key suppliers from FOB destination to FOB shipping point. In-store inventory is expected to increase approximately 13% on a dollar basis per store at the end of the second quarter, as compared to the same period last year.

Christopher & Banks Corporation is a Minneapolis-based specialty retailer of women's clothing. As of September 22, 2011, the Company operates 773 stores in 46 states consisting of 503 Christopher & Banks stores, 238 stores in their plus size clothing division CJ Banks, 10 dual-concept stores and 22 outlet stores.

Christopher & Banks Corporation


Must ReadView All

Union Minister for finance Arun Jaitley chairing the 25th GST Council meeting, flanked by minister of state for finance Shiv Pratap Shukla (right) and finance secretary Dr Hasmukh Adhia. Courtesy: PIB

Textiles | On 20th Jan 2018

GST rate on velvet fabric reduced to 5%

The 25th Goods and Services Tax (GST) Council meeting, held under the ...

RIL petrochemicals’ revenue grows 47.6% in Q3 FY18

Textiles | On 20th Jan 2018

RIL petrochemicals’ revenue grows 47.6% in Q3 FY18

The revenue from the petrochemicals segment at Reliance Industries...

Courtesy: Cotton USA

Textiles | On 20th Jan 2018

US cotton bodies pledge to support CCI activities

Ten US cotton organisations have pledged industry contributions in...

Interviews View All

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Poojaa Kumar Deepak
Zeven

Zeven's performance sports apparel is designed for the Indian body type,...

Representatives
Textile & apparel industry

GST is a complicated and lengthy process

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

January 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.1%
No
13.4%
Skip
17.5%

Total Votes: 97

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.9%
No
28.9%
Skip
7.2%

Total Votes: 97

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.6%
No
9.3%
Skip
3.1%

Total Votes: 97

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
82.5%
No
8.2%
Skip
9.3%

Total Votes: 97


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search