MINNEAPOLIS--Christopher & Banks Corporation (NYSE: CBK) today reported results for its second quarter and six months ended September 1, 2007.
Second Quarter Results
Total sales for the second quarter ended September 1, 2007 were $141.1 million compared to $131.6 million for the quarter ended August 26, 2006. Net income for the second quarter was $3.4 million or $0.09 per diluted share compared to $7.9 million or $0.21 per diluted share for the second quarter last year. This year's second quarter results include a charge of approximately $0.04 per diluted share related to the Company's Chief Executive Officer transition that occurred in late August of this year. Same-store sales for the thirteen week period ended September 1, 2007 increased 3% compared to the thirteen week period ended September 2, 2006.
For the sixth month period ended September 1, 2007, net sales were $290.5 million compared to $274.1 million for the sixth month period ended August 26, 2006. Net income was $15.1 million or $0.42 per diluted share compared to $22.5 million or $0.60 per diluted share last year. Same-store sales for the twenty-six week period ended September 1, 2007 declined 1% compared to the twenty-six week period ended September 2, 2006. As of September 1, 2007, the Company operated 807 stores compared to 753 as of August 26, 2006.
Lorna Nagler, President and Chief Executive Officer of Christopher & Banks Corporation, commented, "I am extremely pleased to have joined Christopher & Banks and look forward to working with our entire team to build on the foundation that is in place. Going forward, I believe our Company has tremendous potential to increase productivity through truly understanding, and catering to, our customers' needs."
Financial Outlook
The Company currently anticipates fiscal 2008 third quarter earnings per diluted share to be in the range of $0.22 to $0.24. This compares to third quarter of fiscal 2007 earnings per diluted share of $0.24. The Company currently expects fiscal 2008 fourth quarter earnings per diluted share of $0.06 to $0.08 as compared to $0.05 per diluted share in last year's fourth quarter. The updated guidance reflects the expectation for a low-single digit same-store sales increase for the third quarter and a low to mid single digit same-store sales increase in the fourth quarter. For the year, the Company estimates earnings per diluted share to be in the range of $0.70 to $0.74, compared to $0.89 per share last year.
The Company also announced that fiscal September same-store sales month-to-date through September 26, 2007 were flat. In addition, the Company announced that it purchased 150,000 shares of its common stock in September. The Company has now purchased 486,100 shares of its common stock at a total cost of approximately $7.0 million under its current $20 million repurchase program.
Conference Call Information
The Company will discuss its second quarter results in a conference call scheduled for today, September 27, 2007 at 5:00 pm Eastern time. The conference call will be simultaneously broadcast live over the internet at http://www.christopherandbanks.com. An online archive of the broadcast will be available within one hour of the completion of the call and will be accessible at http://www.christopherandbanks.com until October 11, 2007. In addition, an audio replay of the call will be available shortly after its conclusion and archived until October 4, 2007. This call may be accessed by dialing (888) 203-1112, pass code 4529645.
About Christopher & Banks
Christopher & Banks is a Minneapolis-based specialty retailer of women's clothing. The Company currently operates 808 stores under the names Christopher & Banks, CJ Banks and Acorn. The Company currently has 531 Christopher & Banks stores, 239 CJ Banks stores and 38 Acorn stores.
This release contains forward-looking statements including statements regarding (i) the Company's anticipated third quarter and fourth quarter fiscal 2008 earnings per diluted share and (ii) the Company's expectation for a low-single digit same-store sales increase for the third quarter and a low to mid single digit same-store sales increase in the fourth quarter. The achievement of such results is subject to certain risk factors and uncertainties and actual results may differ materially from those projected. Such risk factors include, but are not limited to, adverse changes in economic, market and weather conditions, shifts in consumer tastes and spending habits that result in decreased sales, failure to realize expected economies gained through the use of private label and direct import merchandise, problems in managing our growth and other factors outside the Company's control, including factors discussed from time to time in the Company's filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on forward-looking statements, which reflect management's analysis only as of the date hereof. The Company undertakes no obligation to update these forward-looking statements to reflect events or circumstances that may arise after the date hereof.
CHRISTOPHER & BANKS CORPORATION
UNAUDITED COMPARATIVE INCOME STATEMENT
FOR THE QUARTERS AND SIX MONTHS ENDED
SEPTEMBER 1, 2007 AND AUGUST 26, 2006
(in thousands, except per share data)
Quarter Ended Six Months Ended
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September August September August
1, 26, 1, 26,
2007 2006 2007 2006
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Net sales $141,128 $131,553 $290,499 $274,084
Costs and expenses:
Merchandise, buying and
occupancy 90,595 78,803 177,511 157,365
Selling, general and
administrative 40,627 36,111 79,706 72,192
Depreciation and amortization 5,510 5,017 10,805 9,999
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Total costs and expenses 136,732 119,931 268,022 239,556
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Operating income 4,396 11,622 22,477 34,528
Interest income 1,160 1,325 2,219 2,287
--------- -------- --------- --------
Income before income taxes 5,556 12,947 24,696 36,815
Income tax provision 2,167 5,023 9,631 14,284
--------- -------- --------- --------
Net income $ 3,389 $ 7,924 $ 15,065 $ 22,531
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Basic earnings per share:
Net income $ 0.09 $ 0.21 $ 0.42 $ 0.61
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Basic shares outstanding 35,847 37,401 35,900 36,901
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Diluted earnings per share:
Net income $ 0.09 $ 0.21 $ 0.42 $ 0.60
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Diluted shares outstanding 35,949 38,049 36,010 37,573
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Dividends per share $ 0.06 $ 0.04 $ 0.12 $ 0.08
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CHRISTOPHER & BANKS CORPORATION
UNAUDITED COMPARATIVE BALANCE SHEET
(in thousands)
September 1, August 26,
2007 2006
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ASSETS
Current assets:
Cash and cash equivalents $ 47,421 $ 82,423
Short-term investments 43,450 44,325
Merchandise inventories 50,165 44,427
Other current assets 25,498 17,541
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Total current assets 166,534 188,716
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Property, equipment and improvements, net 132,583 124,593
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Other assets:
Goodwill 3,587 3,587
Other 3,066 910
------------ ----------
Total other assets 6,653 4,497
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Total assets $ 305,770 $ 317,806
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 12,408 $ 10,827
Accrued liabilities 28,206 26,538
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Total current liabilities 40,614 37,365
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Other liabilities:
Deferred lease incentives 23,333 21,659
Other 15,037 12,003
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Total other liabilities 38,370 33,662
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Stockholders' equity:
Common stock 449 449
Additional paid-in capital 107,813 101,512
Retained earnings 224,234 206,594
Common stock held in treasury (105,710) (61,776)
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Total stockholders' equity 226,786 246,779
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Total liabilities and stockholders' equity $ 305,770 $ 317,806
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