Christopher & Banks (CBK) Issues Updated Q4 Outlook Ahead of ICR XChange Conference

Christopher & Banks (NYSE: CBK) updated its outlook for the fiscal 2014 fourth quarter, ahead of its presentation at the ICR XChange Conference in Orlando, Florida.

For the fourth quarter of fiscal 2014, the Company now expects:

• total net sales between $96 million to $98 million, as compared to $104.9 million of net sales in last year’s fourth quarter;
• gross margin to be relatively flat as compared to the comparable prior year period, largely driven by improved merchandise margins offset by deleveraging of occupancy; and
• SG&A dollars to be between approximately $32.0 million and $32.5 million, as compared to $31.4 million of SG&A expense reported in the fourth quarter last year.

**** The Street sees Q4 revs of $96.9 million.

LuAnn Via, President and Chief Executive Officer, commented: “We are pleased with our performance thus far this quarter in view of the challenging retail environment. Our inventory levels are in line with our expectations and we are comfortable with our position heading into fiscal 2015. Our key initiatives in merchandising and marketing continue to take hold and our transition to the MPW format continues to drive improved store productivity and profitability. We are confident that we have the foundation in place to achieve our long-term growth and profitability goals.”

As noted on its most recent quarterly investor conference call and as described in its Form 10-Q Report for the third fiscal quarter ended November 1, 2014, with the continued conversion of stores to the MPW format and anticipated new store openings, the percentage of stores eligible to be used for comparison in the Company’s same-store sales calculation will continue to decline over the next several fiscal quarters. As a result, for the near-term, the Company believes same-store sales, on its own, will not be an accurate predictor of its overall performance. Therefore, the Company currently anticipates that its sales guidance, at least through the first quarter of fiscal 2016, will be based on its expectations for total net sales rather than same-store sales. The Company intends to continue reporting same-store sales on a historical basis.

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