MINNEAPOLIS, Mar 26, 2009 -- Fourth quarter loss expected to include a $0.17 to $0.19 per share one-time charge primarily related to store asset impairment, severance and IT related costs.
-- Reports fourth quarter fiscal 2009 same-store sales decline of 20%.
-- Ends fiscal 2009 with cash, cash equivalents and investments of
approximately $95 million.
-- Inventory per store at fiscal year-end (excluding e-Commerce) down 12%
from prior year.
Christopher & Banks Corporation (NYSE:CBK) today announced preliminary results for the fiscal fourth quarter and year-ended February 28, 2009.
For the fourth quarter of fiscal 2009, the Company expects sales from continuing operations of approximately $104 million, reflecting a same-store sales decline of 20%. The Company also experienced a significant decrease in its gross margin as compared to the fourth quarter of fiscal 2008. The Company expects to realize a loss per share for the quarter from continuing operations in the range of $0.81 to $0.84, including one-time pre-tax charges of approximately $7.0 to $8.0 million or $0.17 to $0.19 per share. The one-time charges relate primarily to asset impairment associated with under-performing stores, severance associated with the previously announced reorganization of the field management organization and the reduction in force at the Company's corporate headquarters, and information technology software and related charges.
The Company began an expense reduction initiative in fiscal 2009, which resulted in SG&A expenses, excluding one-time charges, being flat on a dollar basis in the fourth quarter as compared to the fourth quarter of the prior fiscal year. It also has identified more than $15 million of additional SG&A savings for fiscal 2010. The Company also expects capital expenditures in the range of $8.0 to $9.0 million for fiscal 2010, down from approximately $18.0 million in fiscal 2009, and ended the quarter with cash, cash equivalents and investments of approximately $95 million. Inventory, excluding e-Commerce inventory, decreased approximately 12% on a per-store basis at the end of the fourth quarter of fiscal 2009, as compared to the end of the fourth quarter of fiscal 2008.
The Company expects to report sales of approximately $531 million and a loss per share in the range of $0.22 to $0.25 from continuing operations for fiscal 2009.
Lorna Nagler, President and Chief Executive Officer, said, "The current retail environment has been extremely challenging. We expect it will remain so well into fiscal 2010. Therefore, we remain extremely focused on the things over which we can control, such as maintaining a healthy balance sheet and strong cash position, prudently managing our inventory, reducing expenses and controlling costs, as well as enhancing our value proposition and customer experience."
The Company is planning to report its fourth quarter and fiscal 2009 results on April 9, 2009 after the market closes.
About Christopher & Banks Corporation
Christopher & Banks Corporation is a Minneapolis-based specialty retailer of women's clothing. As of March 26, 2009, the Company operates 815 stores in 46 states consisting of 548 Christopher & Banks stores and 267 stores in their plus size clothing division CJ Banks. The Company also operates the www.ChristopherandBanks.com and www.CJBanks.com e-commerce websites.
Keywords: Petites, Women's Clothing, Plus Size Clothing, Christopher & Banks, CJ Banks.
Forward-Looking Statements
This release contains forward-looking statements including statements regarding (i) the assumption that the loss per share from continuing operations for the fourth quarter of fiscal 2009 will be in the range of $0.81 to $0.84 and is expected to include one-time charges of $7.0 to $8.0 million or $0.17 to $0.19 per share primarily related to store asset impairment, severance and IT related costs; (ii) the expectation of sales from continuing operations of approximately $104 million for the fourth quarter; (iii) the identification of the potential for more than $15 million of additional SG&A savings for fiscal 2010; (iv) that the Company expects capital expenditures in the range of $8.0 to $9.0 million for fiscal 2010; (v) that the Company expects to report sales of approximately $531 million and a loss per share in the range of $0.22 to $0.25 from continuing operations for fiscal 2009; (vi) that the current retail environment will remain extremely challenging well into fiscal 2010; and (vii) that the Company will remain extremely focused on maintaining a healthy balance sheet and strong cash position, prudently managing inventory, reducing expenses and controlling costs, as well as enhancing the Company's value proposition and customer experience. 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: (i) the inherent difficulty in forecasting consumer buying and retail traffic patterns which may be affected by factors beyond our control, such as a weakness in overall consumer demand; adverse weather, economic or political conditions; and shifts in consumer tastes or spending habits that result in reduced sales; (ii) competitive influences, including promotional and pricing competition and the lack of acceptance of the Company's merchandise offerings; (iii) the ability of the Company's infrastructure and systems to adequately support our operations; (iv) effectiveness of the Company's brand awareness and marketing programs and the ability to maintain the value of its brands; (v) the possibility that, because of poor customer response to our merchandise, management may determine it is necessary to sell merchandise at lower than expected margins or at a loss; (vi) the failure to successfully implement the Company's strategic plans; (vii) general economic conditions and uncertainty in the financial and credit markets could lead to a reduction in store traffic and in consumer spending on women's apparel; (viii) fluctuations in the levels of the Company's sales, expenses or earnings; (ix) risks associated with the performance and operations of the Company's Internet operations; and (x) other risks and uncertainties described in our documents filed with the SEC, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. 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.