Sterne Agee Maintains Neutral Rating On CBK

Sterne Agee is maintaining its Neutral rating on shares of Christopher & Banks Corporation CBK. “We toured a CBK store in Bonita Springs, FL, with a District Manager,” Sterne Agee writes. “While the full extent of the new merchant's line will be in stores in the fall, a few styles have recently arrived and are selling out fast. At a recent meeting at HQ of District Managers, new fall fashion was displayed which was more feminine in styling, more business casual which has been missing and more up to date. “Blouses will be added back which had been eliminated earlier. There will be more focus upon fit and quality than in the past. Larry Barenbaum, CEO, will also add to the top 100 doors a branded line dubbed Tribella, an offshoot of the Tribal brand which is more in synch with current fashion which will arrive in May. We sense that business has improved of late in line with positive commentary from department stores regarding February sales. “Limited carryover inventory was in the stores which has been a focus of the new management team and this bodes well for gross margins. Grassroots marketing will continue but it will be up to the individual stores and not dictated at headquarters – allowing stores to spend more time with management. A shift to have the visual merchandising team report to the head merchant will also aid sales in our view.” Christopher & Banks Corporation closed Monday at $6.11.