Christopher & Banks sales dip 5% for 13 weeks ended May 4

Balance Sheet Highlights and Capital Expenditures 

Cash and cash-equivalents, and investments totaled $41.0 million as of May 3, 2014. Inventory per square foot, excluding in-transit and eCommerce inventory, increased approximately 28.8% as of May 3, 2014, as compared to May 4, 2013.

Christopher & Banks Corporation, a specialty women's apparel retailer, reported results for the thirteen week period ended May 3, 2014.#

 

The planned increase in inventory is primarily due to our initial investment in a number of core programs launching infiscal 2014 and the staging of inventory for the 53 Christopher & Banks ("CB") stores that received CJ Banks ("CJ") inventory in early May. For the thirteen week period ended May 3, 2014, the Company had no outstanding borrowings under its revolving credit facility, and capital expenditures totaled approximately $4.2 million. 

 

Outlook for the 2014 Second Quarter and Fiscal Year 

For the second quarter of fiscal 2014, the Company expects: 

Same-store sales to increase in the low to mid-single digit range, which compares to a 7.7% same-store sales increase last year in the second quarter; 

 

Approximately 100 to 150 bps of gross margin improvement, as compared to the comparable prior year period, largely driven by improved merchandise margins; 

 

SG&A dollars to be between approximately $32.5 million and $33.0 million, compared to the $31.5 million of SG&A expense reported in the second quarter last year; inventory to remain higher than the levels for the comparable prior year period, at a level similar to the dollars per square foot increase at the end of the first quarter; and to open 6 new Outlet stores and 3 new MPW stores, convert 14 CB/CJ stores to 7 MPW stores, to close 4 CB stores and replace them with 4 new MPW stores, and to convert 53 CB stores to an equal number of MPW stores by adding CJ product to each. 

 

For the 2014 fiscal year, the Company: 

Expects capital expenditures to be approximately $23 million to $25 million; Expects to recognize a nominal amount of tax expense, as the Company's tax provisions will continue to be affected by the valuation allowance on its deferred tax assets in fiscal 2014, although the potential exists that the valuation allowance may be reversed later this fiscal year; is planning average store count to be down 8% and related average square footage for the year to be down 5% as compared to fiscal 2013; and  expects to end the fiscal year with a total square footage increase of 1% as compared to the end of fiscal 2013.