Loss widens for specialty apparel retailer

Christopher & Banks Corp.’s loss widened in its second quarter amid soft sales its outlet channel and a temporary shutdown of its e-commerce site.



The company reported a net loss of $3.9 million, or a $0.11 loss per share, compared to a net loss for the prior year period of $0.7 million, or a $0.02 loss per share. Same-store sales decreased 5.8%, compared to a 12.4% decrease in the same period last year.



Net sales at Christopher & Banks fell 4.3% $89.9 million. The retailer cited several factors for its sales shortfall, including softness in its outlet stores and the transition to a new online platform in mid-May, which caused a temporary shutdown in the channel. It also cited a shift a timing of its May customer event and “product categories where our merchandise offering did not meet expectations.”



"Overall, results for the second quarter were below our expectations and we acknowledge that the significant changes we have made for the long term have led to some sales volatility in the short term,” said LuAnn Via, president and CEO.” While we expect the retail environment will continue to be challenging, we are confident that the actions we are taking will drive consistency in sales growth and expanded profit margins for the future. Our strong first quarter results, as well as our August sales comps, which were positive, reinforce that the changes we have made to our store format and product offerings do resonate with our customer and were right for the business long term.”



As of August 30, 2016, the company operates 506 stores in 45 states.