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Christopher & Banks net sales down 4.5% to $83.4 mn in Q2

13
Sep '19

Pic: Christopher & Banks

For the second quarter of fiscal 2019 ending August 3, 2019, specialty women's apparel retailer Christopher & Banks Corporation, recorded total net sales of $83.4 million, a decrease of 4.5 per cent, while operating on average 456 stores. This compares to $87.4 million in net sales for the second quarter of fiscal 2018, while operating on average 462 stores.

The comparable sales of the company declined 4.1 per cent following a 0.8 per cent increase in the same period last year, according to a press release by Christopher & Banks Corporation.

"Our second quarter results reflect meaningful progress on our initiatives to drive improved bottom line performance. The $1.4 million year over year improvement in adjusted EBITDA reflects a combination of a higher gross margin rate and lower SG&A as we continue to drive merchandise margin expansion, advance our real estate optimisation strategies and benefit from our cost reduction initiatives. While our top line initiatives have been slower to take hold, we are very pleased to see positive comparable sales for the third quarter-to-date in both brick and mortar stores, and in our e-commerce channel. We are confident that we are on the right path to delivering improved sales performance based on the continuation of higher conversion rates, increased full-price sell-through and the growth we experienced in new and reactivated customers during the second quarter. Based on current trends, we are confident that we have more than sufficient cash resources and liquidity to implement our strategies and effectuate the turnaround of the business," said Keri Jones, president and chief executive officer of Christopher & Banks Corporation.

For the full year of fiscal 2019, the company expects net sales to be flat to up 2 per cent as the result of expanded omni-channel capabilities, enhancements to the overall product assortment and more impactful marketing promotions intended to drive customer file growth. Gross margin expansion of 100 to 200 basis points is expected as a result of improved inventory management including supply chain and omni-channel initiatives, greater disciplines around promotions and the continued reduction of occupancy costs.

"Based on the strong top line results quarter-to-date, we are maintaining our financial guidance for the fiscal year," added Jones. (PC)

Fibre2Fashion News Desk – India

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