Christopher & Banks posts Q3 loss, exploring real estate deal
Women's apparel retailer Christopher & Banks swung to a loss in its third quarter, and announced it may sell (and lease back) its corporate headquarters.
The company reported a net loss of $1.6 million, or ($0.05) per share for the quarter ended October 28, compared to net income for the prior year period of $3.5 million, or $0.09 per share. Analysts had forecast ($0.08) per share
Net sales fell 7.7% to $98.5 million, less than expected, while operating on average 473 stores. This compares to $106.7 million in the year-ago period while operating on average 506 stores.
Same-store sales decreased 5.0% following a 4.5% increase in the same period last year. eCommerce sales increased 8.5% following a 16.3% increase last year.
“We remain pleased with the progress of our turnaround, and with the inflection point we saw in our business late in October," stated Joel Waller, interim president and CEO. "For the fourth quarter-to-date, comparable sales are up mid-single-digits reflecting an increase in transactions and average dollar sales, including higher AUR as compared to the same period last year. While the third quarter was somewhat disappointing, we attribute this partially to weather and saw the timing of our sales improvement coincide with more seasonable weather as well as the receipt of new holiday merchandise."
In March, Waller outlined a turnaround plan that includes an increased focus on more relevant, fashion-oriented merchadise (as opposed to core products). The plan also called for improvements in the company's outlet business, e-commere and store operations, as well as marketing.
Christopher & Banks has hired a commercial real estate company to solicit interest in a sale and leaseback of the retailer's corporate facility in Plymouth, Minn., to unlock additional capital and enhance its overall liquidity position. The company estimates the value of the building is in the low to mid-teen million dollar range.
As of November 28, 2017, the company operates 472 stores in 45 states.
The company reported a net loss of $1.6 million, or ($0.05) per share for the quarter ended October 28, compared to net income for the prior year period of $3.5 million, or $0.09 per share. Analysts had forecast ($0.08) per share
Net sales fell 7.7% to $98.5 million, less than expected, while operating on average 473 stores. This compares to $106.7 million in the year-ago period while operating on average 506 stores.
Same-store sales decreased 5.0% following a 4.5% increase in the same period last year. eCommerce sales increased 8.5% following a 16.3% increase last year.
“We remain pleased with the progress of our turnaround, and with the inflection point we saw in our business late in October," stated Joel Waller, interim president and CEO. "For the fourth quarter-to-date, comparable sales are up mid-single-digits reflecting an increase in transactions and average dollar sales, including higher AUR as compared to the same period last year. While the third quarter was somewhat disappointing, we attribute this partially to weather and saw the timing of our sales improvement coincide with more seasonable weather as well as the receipt of new holiday merchandise."
In March, Waller outlined a turnaround plan that includes an increased focus on more relevant, fashion-oriented merchadise (as opposed to core products). The plan also called for improvements in the company's outlet business, e-commere and store operations, as well as marketing.
Christopher & Banks has hired a commercial real estate company to solicit interest in a sale and leaseback of the retailer's corporate facility in Plymouth, Minn., to unlock additional capital and enhance its overall liquidity position. The company estimates the value of the building is in the low to mid-teen million dollar range.
As of November 28, 2017, the company operates 472 stores in 45 states.