Christopher & Banks Corporation (NYSE: CBK), a specialty women’s apparel retailer, today announced preliminary financial results for its fiscal third quarter ended November 26, 2011. The Company also announced that, given the Company’s recent financial performance and the current business environment, the Board of Directors has suspended the payment of a quarterly dividend.
For the third quarter of fiscal 2012:
- Net sales are expected to be $123.9 million, as compared to $120.9 million in the same period last year. Comparable store sales were essentially flat for the quarter.
- Gross margin is expected to be in the range of 21.3% to 21.7%, as compared to 35.9% in the same period last year.
- SG&A expenses are expected to be approximately $38.0 million to $39.0 million, compared to $37.6 million for last year’s third fiscal quarter.
- Cash, cash equivalents and investments are expected to total approximately $75 million at the end of the fiscal quarter.
The Company anticipates reporting an operating loss for the quarter but is still in the process of completing its asset impairment analysis for the quarter. Therefore, it is not providing more specific information regarding the anticipated operating loss or the anticipated net loss per share for the quarter until its earnings announcement on December 22, 2011.
Larry Barenbaum, President and Chief Executive Officer, commented, “We are clearly disappointed in our third quarter performance. We were more aggressive in our promotions in order to drive sales and move through seasonal inventory, which resulted in flat comparable store sales although at sharply lower gross margins. Based on our recent performance and the view that we should preserve cash to provide us greater financial flexibility, the Board of Directors has made the decision to suspend our dividend. We will provide additional detail on our initiatives and on the store closings announced on November 11, 2011 during the earnings conference call scheduled for December 22, 2011.”