Christopher & Banks (CBK) Lowers Q4 Comps Outlook
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Financial Fact:
Diluted shares outstanding (in shares): 37.15M
Today's EPS Names:
WF, CWBC, GLTO, More
Financial Fact:
Diluted shares outstanding (in shares): 37.15M
Today's EPS Names:
WF, CWBC, GLTO, More
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Christopher & Banks Corporation (NYSE: CBK) announced updated financial expectations for its fourth fiscal quarter ending February 1, 2014.
For the fourth quarter of fiscal 2013 the Company expects:
-- Same-store sales to be flat or slightly up on a year-over-year basis, versus the previous outlook for a low-single digit increase. The lowered same-store sales guidance reflects the impact of store closures related to weather.
-- Gross margin to increase 150 to 200 bps, as compared to last year’s fourth fiscal quarter, due to fewer promotions than anticipated. This compares to our prior guidance of an increase of 100 to 150 bps.
-- SG&A dollars to be between 30.0% to 30.2% as a percent of net sales, as compared to 30.0% in last year’s fourth fiscal quarter, due to ongoing cost controls.
-- To recognize a nominal amount of tax benefit, as the Company’s tax provisions will continue to be affected by the valuation allowance on the Company’s deferred tax assets.
-- Inventory per store will be up, as planned, year-over-year, as we invest in new core programs that have been well received by our customers. The composition of the end of the year inventory will be primarily go-forward product.
LuAnn Via, President and Chief Executive Officer, commented: “Given the challenges created by weather and a difficult retail environment, overall we are very pleased with our performance to-date for the quarter. While our top line has been modestly impacted by weather-related store closures, we are exceeding our gross margin expectations which we attribute to effective execution on our strategies. We continue to see favorable reaction to our merchandise assortments and our marketing programs designed to entice our customer are working. Overall, we believe that our merchandise assortments, marketing programs and retail strategy will continue to drive sales and earnings growth longer term and we remain on track with our three year plan. At the same time, we will continue to carefully monitor the retail environment and manage our inventory levels and expenses accordingly.”
Except as described above, the Company’s guidance for the fourth quarter and full fiscal year remains unchanged from the guidance in its December 4, 2013 earnings release.
For the fourth quarter of fiscal 2013 the Company expects:
-- Same-store sales to be flat or slightly up on a year-over-year basis, versus the previous outlook for a low-single digit increase. The lowered same-store sales guidance reflects the impact of store closures related to weather.
-- Gross margin to increase 150 to 200 bps, as compared to last year’s fourth fiscal quarter, due to fewer promotions than anticipated. This compares to our prior guidance of an increase of 100 to 150 bps.
-- SG&A dollars to be between 30.0% to 30.2% as a percent of net sales, as compared to 30.0% in last year’s fourth fiscal quarter, due to ongoing cost controls.
-- To recognize a nominal amount of tax benefit, as the Company’s tax provisions will continue to be affected by the valuation allowance on the Company’s deferred tax assets.
-- Inventory per store will be up, as planned, year-over-year, as we invest in new core programs that have been well received by our customers. The composition of the end of the year inventory will be primarily go-forward product.
LuAnn Via, President and Chief Executive Officer, commented: “Given the challenges created by weather and a difficult retail environment, overall we are very pleased with our performance to-date for the quarter. While our top line has been modestly impacted by weather-related store closures, we are exceeding our gross margin expectations which we attribute to effective execution on our strategies. We continue to see favorable reaction to our merchandise assortments and our marketing programs designed to entice our customer are working. Overall, we believe that our merchandise assortments, marketing programs and retail strategy will continue to drive sales and earnings growth longer term and we remain on track with our three year plan. At the same time, we will continue to carefully monitor the retail environment and manage our inventory levels and expenses accordingly.”
Except as described above, the Company’s guidance for the fourth quarter and full fiscal year remains unchanged from the guidance in its December 4, 2013 earnings release.
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