Apr '11
The Company also expects fourth quarter gross margin to decrease by 900 to 1,000 basis points, as compared to last year's fourth fiscal quarter, primarily due to increased markdowns. SG&A expense is expected to be approximately $35 million for the quarter. As a result, the net loss per share for the fourth quarter is expected to range from $0.47 to $0.51. Anticipated results include a pre-tax, non-cash charge associated with asset impairment for underperforming stores of approximately $2.8 million, or $0.06 per share, and an effective tax rate in the mid-to-high teens.
The Company also expects capital expenditures of approximately $9 million for fiscal 2011, and to end the fiscal year with cash, cash equivalents and investments of approximately $106 million. Inventory, excluding e-commerce inventory, is expected to increase approximately 4% on a per-store basis at the end of the fourth quarter of fiscal 2011, as compared to the end of the fourth quarter of fiscal 2010.
For the full fiscal year, the Company expects to report net sales of approximately $448.1 million, reflecting a 1% decline in same-store sales. The Company also expects to report a loss per share in the range of $0.62 to $0.66, which includes non-cash charges related to the recognition of a $12.9 million full valuation allowance on the Company's net deferred tax assets in the third quarter and an anticipated asset impairment charge of approximately $2.8 million in the fourth quarter.
Larry Barenbaum, President and Chief Executive Officer, commented, “While we are clearly disappointed with our sales and gross margin results in the fourth quarter, the weaker than anticipated performance was largely attributable to a merchandise assortment that did not reflect our new merchandising and product strategy going forward. That said, we responded quickly and were able to reduce inventory to levels below our initial expectations, as we increased markdowns to aggressively move through product.
“We have a number of initiatives underway that we believe will better align our product styling with our customers' tastes and we expect the full benefit from these efforts to be visible beginning with our fall 2011 product offerings, which are scheduled for delivery in August. We are also focused on enhancing our customer experience and refining our marketing related initiatives to recapture our core customers' fashion dollars.”
Mr. Barenbaum continued, “Fiscal 2012 will be a year of transition at Christopher & Banks, as our primary focus is on returning the Company to profitability through improved sales and gross margin. We effectively managed inventory levels and SG&A expenses in fiscal 2011, ending the year with no long-term debt and cash, cash equivalents and investments of approximately $106 million.”
The Company is planning to report its final fiscal 2011 fourth quarter and full year results on April 14, 2011 after the market closes.
Christopher & Banks Corporation
Must ReadView All
Textiles | On 21st Oct 2017
Pakistan govt notifies 50% duty drawback on exports
The Pakistan government has notified the ‘Duty Drawback of Taxes...
Textiles | On 21st Oct 2017
Ghana sets up task force to clamp down on textile piracy
Ghana’s ministry of trade and industry has set up a taskforce to...
Fashion | On 21st Oct 2017
US company Coach to change name to Tapestry from Oct 31
Coach Inc., a New York-based house of modern luxury accessories and...
Interviews View All
Anvita Mehra
Confidential Couture
‘It is going to take some time for Indian buyers to get accustomed to...
Amit Jain
Shingora Textiles Ltd
‘In terms of fabric, the fastest growing category for us is a blend of...
Neel Sawhney
One Friday
‘The share of kidswear segment in the online sector is still small in...
Reckon Industries adapts latest systems for manufacturing from designing...
Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...
Kusumgar Corporates is a leading manufacturer of technical textiles and...
Johan Berlin
InvestKonsult Sweden AB
Investkonsult Sweden AB has been buying and selling second-hand textile...
Kerem Durdag
Biovation II LLC
Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...
Mark Paterson
Technical Absorbents Ltd
Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...
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...
Prathyusha Garimella
Prathyusha Garimella
Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...
Recommended
news category
Related Categories:
Do you think the sustainability space has the needed tools and resources available for a business to lead change?
Yes No SkipActive Poll
Do you see sustainability as a route to business growth?
YesTotal Votes: 70
Do you think adopting a sustainable approach will be a profitable move for your business?
Yes No SkipActive Poll
Do you think the sustainability space has the needed tools and resources available for a business to lead change?
YesTotal Votes: 70
Do you want the world to know about your sustainability journey and your business’ environmental footprint?
Yes No SkipActive Poll
Do you think adopting a sustainable approach will be a profitable move for your business?
YesTotal Votes: 70
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?
YesTotal Votes: 70
E-News Insight
Latest News Update in Your Mail Box.
