Christopher & Banks Corporation Reports Q3FY2011 Results

Christopher & Banks Corporation CBK, a specialty women's apparel retailer, today reported results for the third fiscal quarter and nine month period ended November 27, 2010.

Results for the Three Months Ended November 27, 2010

• Total net sales for the third quarter were $120.9 million, as compared to $132.0 million for the third quarter of fiscal 2010. Same store sales decreased 7% in the third quarter of fiscal 2011.
• Gross profit decreased 19.3% to $43.4 million, as compared to $53.8 million in the third quarter of fiscal 2010. Gross profit margin was 35.9% for the third quarter of fiscal 2011, as compared to 40.8% in the third quarter of fiscal 2010.
• Operating loss totaled $0.2 million, including a non-recurring pre-tax severance charge of approximately $1.0 million related to the separation of the Company's former Chief Executive Officer. This compares to operating income of $9.8 million in the same period last year.
• Net loss totaled $9.2 million, or $0.26 per diluted share, including a one-time non-cash charge resulting from recording a $12.9 million, or $0.36 per share, valuation allowance related to the Company's deferred tax assets as discussed further below. The valuation allowance recorded in the Company's income tax provision was partially offset by approximately $3.8 million of tax benefit in the third quarter. The Company reported net income of $7.0 million, or $0.19 per diluted share in the third quarter of fiscal 2010.

Results for the Nine Months Ended November 27, 2010

• Total net sales were $348.5 million, as compared to $353.5 million for the nine months ended November 27, 2010. Same store sales declined 1% in the first nine months of fiscal 2011.
• Operating income totaled $6.0 million, or 1.7% of net sales, including non-recurring pre-tax severance charges of approximately $1.5 million related to the separation of the Company's former Chief Executive Officer and Chief Financial Officer. This compares to operating income of $8.8 million, or 2.5% of net sales, for the comparable nine month period last year.
• Net loss totaled $5.4 million, or $0.15 per diluted share, as compared to net income of $6.5 million, or $0.18 per diluted share, for the first nine months of fiscal 2010. This included a non-recurring severance charge of approximately $0.01 per share in the second quarter of fiscal 2011, a non-recurring severance charge of approximately $0.02 per share in the third quarter of fiscal 2011 and a non-cash charge of $0.36 per share related to the valuation allowance on deferred tax assets referenced above.