Christopher & Banks Corporation Announces Holiday Sales and Comparable Sales Outlook for the Fourth Quarter of Fiscal 2018
January 14 2019 - 06:30AM
Business Wire
- Reaffirms Fiscal 2019 Outlook
-
Christopher & Banks Corporation (NYSE:CBK), a specialty
women’s apparel retailer, today announced holiday sales through the
first ten weeks of the fourth quarter and provided a comparable
sales outlook for the fourth quarter of fiscal 2018 ending February
2, 2019.
- Through the first ten weeks of the
fourth quarter comparable sales increased approximately 3.0% at
expanded merchandise margin rates as compared to the first ten
weeks of last year’s fourth quarter.
- Comparable sales are expected to be
positive low single digits for the fourth quarter following a 5.7%
sales comp increase in last year’s fourth quarter.
- On-hand inventory is expected to be
down mid-single digits as compared to the end of last year's fourth
quarter.
Keri Jones, President and Chief Executive Officer, commented,
“We are pleased to have delivered positive comparable sales for the
holiday period with strong conversion rates thus far in the
quarter. We also saw our eCommerce business continue to accelerate,
which we attribute in-part to our ship-from-store initiative. We
believe that our improved performance quarter-to-date was the
result of new product resonating with customers, an enhanced
in-store experience that made it easier to shop, compelling
promotions, and our omni-channel initiatives. These results reflect
the traction that we are starting to see from our strategic
initiatives. Looking ahead, we remain focused on advancing our five
strategic initiatives including enhancing and simplifying her
shopping experience; delivering compelling promotions; growing our
omni-channel business; building loyalty and growing our customer
file; and continuing to reduce our cost structure. As such we are
reaffirming our fiscal 2019 outlook.”
Fiscal 2019 OutlookFor fiscal 2019, the Company
expects:
- Net sales to increase 2% to 3% as the
result of expanded omni-channel capabilities, enhancements to the
overall product assortment, and more impactful marketing promotions
to drive customer file growth;
- Gross margin expansion of 300 to 350
basis points as a result of improved inventory management including
supply chain and omni-channel initiatives, greater discipline
around promotions and the continued reduction of occupancy
costs;
- SG&A as a percentage of sales to
decline 150 to 200 basis points due to ongoing cost reduction
initiatives; and
- Inventory turns to improve as compared
to fiscal 2018.
Fourth Quarter Conference CallThe Company plans to
discuss its fourth quarter results in a conference call scheduled
for March 13, 2019, at 8:30 a.m. Eastern Time.
About Christopher & BanksChristopher & Banks
Corporation is a Minneapolis-based national specialty retailer
featuring exclusively designed privately branded women’s apparel
and accessories. As of January 14, 2019, the Company operates 461
stores in 45 states consisting of 314 MPW stores, 80 Outlet stores,
35 Christopher & Banks stores, and 32 stores in its women’s
plus size clothing division CJ Banks. The Company also operates the
www.ChristopherandBanks.com eCommerce website.
Keywords: Christopher & Banks, CJ Banks, Women’s
Clothing, Plus Size Clothing, Petites, Extended Sizes, Outfits.
Forward-Looking StatementsCertain statements in this
press release may constitute forward-looking statements, made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, which reflect our current views with
respect to certain events that could have an effect on our future
performance. The forward-looking statements relate to expectations
concerning matters that are not historical facts and may use the
words “will”, "expect", "anticipate", "plan", "intend", "project",
"believe", “should”, "drive" "in order to" and similar expressions.
Except for historical information, matters discussed in this press
release may be considered forward-looking statements.
These forward-looking statements are based largely on
information currently available to our management and our current
expectations, assumptions, plans, estimates, judgments and
projections about our business and our industry, and are subject to
a number of uncertainties and risks, as well as assumptions that,
if they do not fully materialize or prove incorrect, could cause
the Company's future performance and financial results to differ
materially from those expressed or implied by the forward-looking
statements. We cannot guarantee their accuracy or our future
performance, and there are a number of known and unknown risks,
uncertainties, contingencies, and other factors (many of which are
outside our control) that could cause actual results to differ
materially from those expressed or implied by such forward-looking
statements. Accordingly, there is no assurance that our
expectations will, in fact, be achieved or that our estimates or
assumptions will be correct, and we caution investors and all
others not to place undue reliance on such forward-looking
statements.
Important factors that could cause actual results to differ
materially from estimates or projections contained in the
forward-looking statements include, but are not limited to, those
factors described in Item 1A, “Risk Factors” and in the
“Forward-Looking Statements” disclosure in “Item 7. Management’s
Discussion and Analysis of Financial Condition and Results of
Operations” of our latest annual report on Form 10-K and in our
subsequent Form 10-Q Reports. All forward-looking statements that
are made or attributable to us are expressly qualified in their
entirety by this cautionary notice. The Company does not undertake
to publicly update or revise its forward-looking statements even if
experience or future changes make it clear that projected results
expressed or implied in such statements will not be realized.
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COMPANY:Richard BundySenior Vice President, Chief Financial
Officer(763) 551-5000
INVESTOR RELATIONS:Jean FontanaICR, Inc.(646) 277-1214