Christopher & Banks announces Q2 fiscal 2011 results
Christopher & Banks Corporation, a specialty women's apparel retailer, announced results for the second fiscal quarter ended August 28, 2010.
Results for the Three Months Ended August 28, 2010
Total net sales for the second quarter were $101.3 million, as compared to $101.2 million for the second quarter of fiscal 2010. Same store sales increased 1% in the second quarter of fiscal 2011. Gross profit increased 2.2% to $35.8 million, as compared to $35.0 million in the second quarter of fiscal 2010. Gross profit margin increased to 35.3% for the second quarter of fiscal 2011 from 34.6% in the second quarter of fiscal 2010.
Operating loss totaled $4.4 million, including a non-recurring pre-tax severance charge of approximately $0.5 million related to the separation of the Company's former Chief Financial Officer. This compares to an operating loss of $3.5 million in the same period last year, which included a pre-tax non-recurring benefit of $1.2 million consisting largely of legal and contract settlements.
Net loss totaled $2.5 million, or $0.07 per share, including the non-recurring severance charge of approximately $0.01 per share. This compares to a net loss of $2.1 million, or $0.06 per share, for the second quarter of fiscal 2010, which included the benefit of the non-recurring contract and legal settlements of approximately $0.02 per share referenced above.
Results for the Six Months Ended August 28, 2010
Total net sales were $227.6 million, as compared to $221.5 million for the six months ended August 29, 2009. Same store sales increased 3% in the first half of fiscal 2011. Operating income totaled $6.2 million, or 2.7% of net sales, as compared to an operating loss of $1.0 million, or 0.5% of net sales, for the comparable six month period last year.
Net income was $3.8 million, or $0.11 per diluted share, as compared to a net loss of $0.4 million, or $0.01 per share, for the first half of fiscal 2010. This included a non-recurring severance charge of approximately $0.01 per share in the second quarter of fiscal 2011 and an approximate $0.02 per share non-recurring benefit largely from contract and legal settlements in the second quarter of fiscal 2010.
Lorna Nagler, President and Chief Executive Officer, commented, "Despite a solid start to the quarter, August sales results fell short of expectations, resulting in a slight earnings shortfall. While our August merchandise deliveries did not resonate well with customers and led to increased promotions and gross margin pressure, response to our most recent fall deliveries is improved and we believe we are on track with our merchandise strategy. We are also encouraged by the initial reaction to some of our recent marketing initiatives."
Ms. Nagler continued, "While we are facing some short term headwinds, we remain focused on our business strategies and initiatives, including merchandising direction, multi-channel strategies and marketing programs. We are confident that these initiatives position us for improved sales and earnings growth over the long term."