Brean Capital Reiterates Buy on Christopher & Banks (CBK); Expects In-Line Q1

Brean Capital reiterates a Buy rating and $7.00 price target on Christopher & Banks (NYSE: CBK) ahead of Q1 report. Analyst Liz Pierce expects an in-line quarter with non-GAAP EPS estimated at ($0.06), and sales of ~$92M. CBK is scheduled to release its report tomorrow, June 9th, before the market opens.

Pierce commented, "We estimate Q1 non-GAAP EPS of ($0.06), slightly lower than the Street estimate of ($0.05) and down to last year’s results of $0.07 while we estimate total sales of ~$92 million, down from last year’s revenue of ~103 million and at the mid-point of guidance. While there are ~30 fewer stores open versus last year, we believe the major revenue pressure point stems from lower-than-planned inventory levels going into the quarter due to the West Coast port delays. We estimate gross margin to drop 150 bps to 35.2%, again at the mid-point of guidance and reflects planned promotional activity but offset by occupancy deleverage due to an expected 8% comp decline. Our SG&A estimate of $33 million is at the top end of the range of $32.5 to $33 million, but we believe appropriate given our negative HSD comp estimate.”

For an analyst ratings summary and ratings history on Christopher & Banks click here. For more ratings news on Christopher & Banks click here.

Shares of Christopher & Banks closed at $5.38 yesterday.

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