Christopher & Banks Corporation, a specialty women’s apparel retailer, announced updated financial expectations for its fourth fiscal quarter ending February 1, 2014.
Same-store sales to be flat or slightly up on a year-over-year basis, versus the previous outlook for a low-single digit increase. The lowered same-store sales guidance reflects the impact of store closures related to weather.
Gross margin to increase 150 to 200 bps, as compared to last year’s fourth fiscal quarter, due to fewer promotions than anticipated. This compares to our prior guidance of an increase of 100 to 150 bps.
SG&A dollars to be between 30.0% to 30.2% as a percent of net sales, as compared to 30.0% in last year’s fourth fiscal quarter, due to ongoing cost controls.
To recognize a nominal amount of tax benefit, as the Company’s tax provisions will continue to be affected by the valuation allowance on the Company’s deferred tax assets.
Inventory per store will be up, as planned, year-over-year, as we invest in new core programs that have been well received by our customers. The composition of the end of the year inventory will be primarily go-forward product.