Christopher & Banks announces Q2 fiscal 2011 results

04 Oct '10

4 min read

Second Quarter Balance Sheet Highlights
The Company ended the second quarter of fiscal 2011 with total cash, cash-equivalents and investments of $109 million. Inventory, excluding e-Commerce inventory, increased 5% on a per-store basis at the end of the second quarter of fiscal 2011, as compared to the end of the second quarter of fiscal 2010. The Company's balance sheet remains strong and management believes that its cash, cash-equivalents and investments are sufficient to meet the Company's cash and liquidity needs for the current fiscal year.

Capital Expenditures
The Company funded $5.5 million of capital expenditures during the first six months of fiscal 2011.

Third Quarter Fiscal 2011 Outlook
For the third quarter of fiscal 2011, the Company expects an increase in same-store sales in the low single digits. Total gross margin is expected to decrease by a couple hundred basis points in the third quarter of fiscal 2011, as compared to last year's third quarter, due to higher product costs and increased promotional activity, somewhat offset by the leveraging of buying and occupancy costs.

SG&A expenses as a percent of sales are expected to be slightly higher in the third quarter of fiscal 2011, as compared to the third quarter of fiscal 2010. Per store inventory, which excludes e-Commerce, is expected to be up in the high single digits at the end of the third quarter, as compared to the end of last year's third quarter. Capital expenditures are expected to be $11 to $12 million for the full fiscal year.

Christopher & Banks Corporation

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