Results for the Forty-Eight Weeks Ended January 28, 2012

  • Net sales totaled $412.8 million and same store sales decreased 5%, compared to the same forty-eight week period last year.
  • Operating loss totaled $71.8 million and included $21.2 million, or $0.59 per share, of non-cash store asset impairment and restructuring charges. In the third quarter, the Company recorded non-cash asset impairment charges of $11.4 million related to 103 stores identified for closure and other stores the Company will continue to operate. Restructuring charges totaled $9.8 million, including approximately $8.3 million related to accrued lease termination liabilities associated with stores identified for closure as part of the Company’s real estate restructuring efforts. The Company also recorded approximately $1.2 million of severance charges related to terminations at its corporate office and in the Company’s field organization in the third and fourth quarters. In addition, the Company recorded approximately $0.3 million of other miscellaneous store closing costs.
  • Net loss for the forty-eight week period totaled $71.1 million, or ($2.00) per share, including the $0.59 per share for the restructuring and non-cash asset impairment charges mentioned above, and an effective tax rate of 0.5%, which is significantly lower than the statutory rate due to the Company’s maintenance of a full valuation allowance against its deferred tax assets.

Balance Sheet Highlights and Capital Expenditures

Cash, cash-equivalents and investments totaled $61.7 million as of January 28, 2012. Inventory, excluding in-transit and e-Commerce inventory, increased approximately 2% on a per-store basis as of January 28, 2012, as compared to January 29, 2011. For the forty-eight week period ended January 28, 2012, the Company had no outstanding borrowings under its revolving credit facility and capital expenditures totaled approximately $11.7 million.

Real Estate Restructuring Efforts

In November, after an in-depth analysis of its store portfolio, the Company announced its plans to close approximately 100 stores, most of which were underperforming. Ultimately 103 stores were identified for closure and 90 of these stores were closed as of January 28, 2012, with the majority of the remaining stores closing in February and March 2012. In addition to the 90 stores referenced above, the Company closed 29 additional stores in the normal course of business, for a total of 119 store closures for the eleven months ended January 28, 2012. The Company opened 20 new outlet stores, nine new dual stores and one Christopher & Banks store during the eleven-month period ending January 28, 2012. The Company also converted 22 dual stores in existing locations where a Christopher & Banks store and a C.J. Banks store were combined into one location and, finally, 29 additional dual stores were created by adding women’s plus size merchandise to existing Christopher & Banks stores. As of January 28, 2012 the Company had 402 Christopher & Banks stores, 199 C.J. Banks stores, 62 dual stores and 23 Outlet stores. For the current fiscal year, the Company intends to conserve cash as it will have a limited number of store openings and thus minimize capital expenditures related to new store openings.

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