Christopher & Banks Corporation Reports Third Quarter Fiscal 2016 Financial Results

Christopher & Banks Corporation (NYSE:CBK), a specialty women's apparel retailer, today reported results for the third quarter ended October 29, 2016.

Results for the Third Quarter Ended October 29, 2016
  • Net sales totaled $106.7 million, an increase of 2.9%, while operating on average 506 stores, compared to $103.6 million in net sales for the third quarter of fiscal 2015, while operating on average 533 stores.
  • Comparable sales increased 4.5% compared to a 6.7% decrease in the same period last year.
  • Gross margin rate increased 95 basis points to 36.8%, as compared to last year's third quarter.
  • Net income totaled $3.5 million, or $0.09 per diluted share, compared to a net loss for the prior year period of $0.3 million, or a $0.01 loss per share.
  • Adjusted EBITDA, a non-GAAP measure, was $6.7 million, compared to $3.8 million for the same period last year. The Company defines Adjusted EBITDA as Net income (loss), adjusted for Income tax provision (benefit); Other Income; Interest expense, net; Depreciation and Amortization; Impairment of store assets; and certain non-recurring items. *
  • On-hand inventory, at cost, was down 3.8%, in line with the Company's expectations.

LuAnn Via, President and Chief Executive Officer, commented, "We are very pleased with our third quarter performance, as we exceeded our original guidance as well as our preliminary results reported on November 4, 2016. Our comparable sales increase reflects a favorable response to our merchandise assortment as well as our effective marketing campaigns and events that drew her into our stores and to our website. We saw growth in average spend among our existing customers and reactivated more lapsed and also acquired additional new customers. We were able to drive an increase in gross margin rate, despite a highly promotional environment and unseasonably warm weather. As we look ahead, we expect continued momentum as we further execute across our strategic initiatives in merchandising, marketing and technology to drive long term profitable growth."

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