Christopher & Banks To Launch ‘Magalog’ (CBK)

Christopher & Banks CBK is poised to do well in the future. The apparel merchant is going to launch its first ever ‘magalog’ during the fall of this year. It is also supporting this marketing initiative with a double digit increase in inventory per store. However, the company’s implied guidance is slightly below expectations. This is due to the non-recurrence of a few one-time SG&A savings. The company had been fast developing a pattern of beating expectations. It is also improving its position in the women’s apparel segment. Piper Jaffray has given the company an overweight rating, with a $14 price target, which is based on 8x FY12E EV/EBITDA.