Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Oct. 29, 2016 | Nov. 25, 2016 | |
Document And Entity Information | ||
Entity Registrant Name | Christopher & Banks Corp | |
Entity Central Index Key | 883,943 | |
Current Fiscal Year End Date | --01-28 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Oct. 29, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 37,401,132 | |
Entity Current Reporting Status | Yes |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Oct. 29, 2016 | Jan. 30, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 25,882 | $ 31,506 |
Short-term investments | 0 | 3,015 |
Accounts receivable | 3,742 | 4,067 |
Merchandise inventories | 54,085 | 42,481 |
Prepaid expenses and other current assets | 9,726 | 9,059 |
Income taxes receivable | 601 | 513 |
Total current assets | 94,036 | 90,641 |
Property, equipment and improvements, net | 57,472 | 59,224 |
Other non-current assets: | ||
Deferred income taxes | 375 | 393 |
Other assets | 460 | 632 |
Total other non-current assets | 835 | 1,025 |
Total assets | 152,343 | 150,890 |
Current liabilities: | ||
Accounts payable | 16,625 | 16,645 |
Accrued salaries, wages and related expenses | 6,754 | 2,845 |
Accrued liabilities and other current liabilities | 23,478 | 24,570 |
Total current liabilities | 46,857 | 44,060 |
Non-current liabilities: | ||
Deferred lease incentives | 9,333 | 9,880 |
Deferred rent obligations | 6,348 | 7,241 |
Other non-current liabilities | 1,396 | 1,301 |
Total non-current liabilities | 17,077 | 18,422 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock — $0.01 par value, 1,000 shares authorized, none outstanding | 0 | 0 |
Common stock — $0.01 par value, 74,000 shares authorized, 47,193 and 46,870 shares issued, and 37,402 and 37,079 shares outstanding at October 29, 2016 and January 30, 2016, respectively | 471 | 468 |
Additional paid-in capital | 126,408 | 125,851 |
Retained earnings | 74,241 | 74,800 |
Common stock held in treasury, 9,791 shares at cost at October 29, 2016 and January 30, 2016 | (112,711) | (112,711) |
Total stockholders’ equity | 88,409 | 88,408 |
Total liabilities and stockholders’ equity | $ 152,343 | $ 150,890 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Oct. 29, 2016 | Jan. 30, 2016 |
Stockholders' equity | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 74,000,000 | 74,000,000 |
Common stock, shares issued | 47,193,000 | 46,870,000 |
Common stock, shares outstanding | 37,402,000 | 37,079,000 |
Common stock held in treasury (in shares) | 9,791,000 | 9,791,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2016 | Oct. 31, 2015 | Oct. 29, 2016 | Oct. 31, 2015 | |
Income Statement [Abstract] | ||||
Net sales | $ 106,668 | $ 103,641 | $ 296,625 | $ 289,259 |
Merchandise, buying and occupancy costs | 67,447 | 66,519 | 189,543 | 188,992 |
Gross profit | 39,221 | 37,122 | 107,082 | 100,267 |
Other operating expenses: | ||||
Selling, general and administrative | 32,483 | 33,604 | 98,585 | 95,223 |
Depreciation and amortization | 3,119 | 3,116 | 9,116 | 8,733 |
Impairment of store assets | 0 | 67 | 476 | 182 |
Total other operating expenses | 35,602 | 36,787 | 108,177 | 104,138 |
Operating income (loss) | 3,619 | 335 | (1,095) | (3,871) |
Interest expense, net | (44) | (36) | (126) | (76) |
Other income | 0 | 0 | 911 | 0 |
Income (loss) before income taxes | 3,575 | 299 | (310) | (3,947) |
Income tax provision (benefit) | 82 | 614 | 249 | (1,480) |
Net income (loss) | $ 3,493 | $ (315) | $ (559) | $ (2,467) |
Basic income (loss) per share: | ||||
Net income (loss) (in dollars per share) | $ 0.09 | $ (0.01) | $ (0.02) | $ (0.07) |
Basic shares outstanding (in shares) | 37,075 | 36,906 | 36,992 | 36,877 |
Diluted income (loss) per share: | ||||
Net income (loss) (in dollars per share) | $ 0.09 | $ (0.01) | $ (0.02) | $ (0.07) |
Diluted shares outstanding (in shares) | 37,153 | 36,906 | 36,992 | 36,877 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2016 | Oct. 31, 2015 | Oct. 29, 2016 | Oct. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 3,493 | $ (315) | $ (559) | $ (2,467) |
Other comprehensive income, net of tax: | ||||
Unrealized holding gains on securities arising during the period, net of taxes of $0, $0, $0 and $2 for the thirteen and thirty-nine week periods ending October 29, 2016 and October 31, 2015, respectively | 0 | 1 | 0 | 3 |
Reclassification adjustment for (gains) included in net income (loss), net of taxes of $0, $1, $0 and $1 for the thirteen and thirty-nine week periods ending October 29, 2016 and October 31, 2015, respectively | 0 | (1) | 0 | (1) |
Total other comprehensive income | 0 | 0 | 0 | 2 |
Comprehensive income (loss) | $ 3,493 | $ (315) | $ (559) | $ (2,465) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2016 | Oct. 31, 2015 | Oct. 29, 2016 | Oct. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Tax expense related to unrealized holding (losses) gains | $ 0 | $ 0 | $ 0 | $ 2 |
Tax expense related to reclassification adjustment for losses included in net income | $ 0 | $ 1 | $ 0 | $ 1 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 29, 2016 | Oct. 31, 2015 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (559) | $ (2,467) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 9,116 | 8,733 |
Impairment of store assets | 476 | 182 |
Deferred income taxes, net | 18 | (1,695) |
Gain on investments, net | 0 | (2) |
Gain from company-owned life insurance | (911) | 0 |
Amortization of premium on investments | 10 | 34 |
Amortization of financing costs | 47 | 47 |
Deferred lease-related liabilities | (817) | 2,923 |
Stock-based compensation expense | 565 | 1,389 |
Loss on disposal of assets | 1 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 326 | (978) |
Merchandise inventories | (11,604) | (7,185) |
Prepaid expenses and other assets | (543) | (3,708) |
Income taxes receivable | (88) | 342 |
Accounts payable | 123 | (1,703) |
Accrued liabilities | 2,912 | 805 |
Other liabilities | 164 | 67 |
Net cash used in operating activities | (764) | (3,216) |
Cash flows from investing activities: | ||
Purchases of property, equipment and improvements | (8,770) | (22,641) |
Proceeds from company-owned life insurance | 911 | 0 |
Maturities of available-for-sale investments | 3,005 | 13,007 |
Net cash used in investing activities | (4,854) | (9,634) |
Cash flows from financing activities: | ||
Exercise of stock options | 17 | 0 |
Shares redeemed for payroll taxes | (23) | (26) |
Net cash used in financing activities | (6) | (26) |
Net decrease in cash and cash equivalents | (5,624) | (12,876) |
Cash and cash equivalents at beginning of period | 31,506 | 37,245 |
Cash and cash equivalents at end of period | 25,882 | 24,369 |
Supplemental cash flow information: | ||
Interest paid | 143 | 120 |
Income taxes paid (refunded) | 102 | (246) |
Accrued purchases of equipment and improvements | $ 267 | $ 1,055 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Oct. 29, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q have been prepared by Christopher & Banks Corporation and its subsidiaries (collectively referred to as “Christopher & Banks”, “the Company”, “we” or “us”) pursuant to the current rules and regulations of the United States ("U.S.") Securities and Exchange Commission. Accordingly, certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the U.S. have been omitted, pursuant to such rules and regulations. These unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements and related notes included in the Company's Annual Report on Form 10-K for the fiscal year ended January 30, 2016 . The results of operations for the interim period shown in this report are not necessarily indicative of results to be expected for the full fiscal year. In the opinion of management, the information contained herein reflects all adjustments, consisting only of normal adjustments, except as otherwise stated in these notes, considered necessary to present fairly our financial position, results of operations, and cash flows as of October 29, 2016 , and October 31, 2015 and for all periods presented. Recently issued accounting pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued authoritative guidance under Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers . ASU 2014-09 supersedes existing revenue recognition requirements and provides a new comprehensive revenue recognition model that requires entities to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers, Deferral of the Effective Date , which defers the effective date of the new revenue recognition standard by one year. As a result, ASU 2014-09 is effective retrospectively for fiscal years and interim periods within those years beginning after December 15, 2017. The adoption will include updates as provided under ASU No. 2016-08, Revenue from Contracts with Customers, Principal versus Agent Considerations (Reporting Revenue Gross versus Net); ASU No. 2016-10, Revenue from Contracts with Customers, Identifying Performance Obligations and Licensing; and ASU No. 2016-12, Revenue from Contracts with Customers, Narrow-Scope Improvements and Practical Expedients. Adoption is allowed by either the full retrospective or modified retrospective approach. The Company is currently evaluating which approach it will apply and the potential impact on our condensed consolidated financial statements. In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes , which requires entities with a classified balance sheet to present all deferred tax assets and liabilities as noncurrent. The Company elected early adoption of this guidance for the fiscal year ended January 30, 2016 , on a prospective basis. The adoption of this ASU allows the Company to simplify its presentation of deferred income tax liabilities and assets. Prior periods were not retrospectively adjusted. In February 2016, the FASB issued ASU 2016-02, Leases , which requires that all lease arrangements longer than twelve months result in an entity recognizing a lease asset and a lease liability on the balance sheet. The updated guidance is effective for interim and annual periods beginning after December 15, 2018, and early adoption is permitted. We have not evaluated the impact of the updated guidance on our condensed consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718) - Improvements to Employee Share-Based Payment Accounting, which simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards, and classification on the statement of cash flows. One provision of this guidance requires the recognition of income tax effects of awards in the statement of operation when the awards vest or are settled, rather than within additional paid-in capital on the balance. The standard is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The Company does not expect that the adoption of this pronouncement will have a material impact on its condensed consolidated financial statements. |
Investments
Investments | 9 Months Ended |
Oct. 29, 2016 | |
Investments [Abstract] | |
Investments | Investments No investments were held by the Company as of October 29, 2016 . Investments as of January 30, 2016, consisted of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Short-term investments: Corporate bonds $ 2,810 $ 1 $ (1 ) $ 2,810 Municipal bonds 205 — — 205 Total investments $ 3,015 $ 1 $ (1 ) $ 3,015 During the thirty-nine weeks ended October 29, 2016 and October 31, 2015 , there were no purchases of available-for-sale securities. During the thirty-nine weeks ended October 29, 2016 and October 31, 2015 , there were approximately $3.0 million and $13.0 million of maturities of available-for-sale securities, respectively. There were no other-than-temporary impairments of available-for-sale securities during the thirty-nine weeks ended October 29, 2016 and October 31, 2015 . |
Merchandise Inventories and Sou
Merchandise Inventories and Sources of Supply | 9 Months Ended |
Oct. 29, 2016 | |
Inventory Disclosure [Abstract] | |
Merchandise Inventories and Sources of Supply | Merchandise Inventories and Sources of Supply Merchandise inventories consisted of the following (in thousands): October 29, 2016 January 30, 2016 Merchandise - in store/eCommerce $ 45,836 $ 31,751 Merchandise - in transit 8,249 10,730 Total merchandise inventories $ 54,085 $ 42,481 There have been no material changes to our ratio of imports to total merchandise purchases or concentration of supplier purchases in the thirty-nine weeks ended October 29, 2016 compared to the fiscal 2015 year ended January 30, 2016 . |
Property, Equipment and Improve
Property, Equipment and Improvements, Net | 9 Months Ended |
Oct. 29, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Equipment and Improvements, Net | Property, Equipment and Improvements, Net Property, equipment and improvements, net consisted of the following (in thousands): Description October 29, 2016 January 30, 2016 Land $ 1,597 $ 1,597 Corporate office, distribution center and related building improvements 12,627 12,618 Store leasehold improvements 51,088 52,812 Store furniture and fixtures 71,874 74,513 Corporate office and distribution center furniture, fixtures and equipment 4,266 4,356 Computer and point of sale hardware and software 35,896 32,644 Construction in progress 4,684 5,781 Total property, equipment and improvements, gross 182,032 184,321 Less accumulated depreciation and amortization (124,560 ) (125,097 ) Total property, equipment and improvements, net $ 57,472 $ 59,224 Long-lived assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. In conjunction with an impairment analysis, the Company determined that improvements and equipment at certain under-performing stores and at stores identified for closure were impaired. As a result, the Company recorded approximately $0 and $0.1 million for long-lived asset impairments during the thirteen week periods ended October 29, 2016 and October 31, 2015 , respectively. The Company recorded approximately $ 0.5 million and $ 0.2 million for long-lived asset impairments during the thirty-nine week periods ended October 29, 2016 and October 31, 2015 , respectively. |
Accrued Liabilities
Accrued Liabilities | 9 Months Ended |
Oct. 29, 2016 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities and other current liabilities consisted of the following (in thousands): October 29, 2016 January 30, 2016 Gift card and store credit liabilities $ 4,731 $ 8,029 Accrued Friendship Rewards Loyalty Program liability 3,991 3,838 Accrued income, sales and other taxes payable 2,779 1,622 Accrued occupancy-related expenses 3,658 3,017 Sales return reserve 1,970 1,309 eCommerce operations 3,319 1,162 Other accrued liabilities 3,030 5,593 Total accrued liabilities and other current liabilities $ 23,478 $ 24,570 |
Credit Facility
Credit Facility | 9 Months Ended |
Oct. 29, 2016 | |
Debt Disclosure [Abstract] | |
Credit Facility | Credit Facility The Company is party to an amended and restated credit agreement (the "Credit Facility") with Wells Fargo Bank, N.A. (“Wells Fargo”), as lender. The Credit Facility was most recently amended and extended on September 8, 2014. The current expiration date is September 8, 2019. The Credit Facility provides the Company with revolving credit loans of up to $50.0 million in the aggregate, subject to a borrowing base formula based primarily on eligible credit card receivables, inventory and real estate, as such terms are defined in the Credit Facility, and up to $10.0 million of which may be drawn in the form of standby and documentary letters of credit. Borrowings under the Credit Facility will generally accrue interest at a rate ranging from 1.50% to 1.75% over the London Interbank Offered Rate ("LIBOR") or 0.50% to 0.75% over the Wells Fargo Prime Rate based on the amount of Average Daily Availability for the Fiscal Quarter immediately preceding each Adjustment Date, as such term is defined in the Credit Facility. The Company has the ability to select between the LIBOR or prime based rate at the time of a cash advance. The Credit Facility has an unused commitment fee of 0.25% . The Credit Facility contains customary events of default and various affirmative and negative covenants. The sole financial covenant contained in the Credit Facility requires the Company to maintain Availability at least equal to the greater of (a) ten percent ( 10% ) of the borrowing base or (b) $3.0 million . In addition, the Credit Facility permits the payment of dividends to the Company's stockholders if certain financial conditions are met. The Company was in compliance with all covenants and other financial provisions as of October 29, 2016 . The Company's obligations under the Credit Facility are secured by the assets of the Company and its subsidiaries. The Company has pledged substantially all of its assets as collateral security for the loans, including accounts owed to the Company, bank accounts, inventory, other tangible and intangible personal property, intellectual property (including patents and trademarks), and stock or other evidences of ownership of 100% of all of the Company's subsidiaries. The Company had no revolving credit loan borrowings under the Credit Facility during each of the thirty-nine week periods ended October 29, 2016 , and October 31, 2015 . The total Borrowing Base at October 29, 2016 was $50.0 million . As of October 29, 2016 , the Company had open on-demand letters of credit of approximately $0.2 million . Accordingly, after reducing the Borrowing Base for the open letters of credit and the required minimum availability of the greater of $3.0 million , or 10.0% of the Borrowing Base, the net availability of revolving credit loans under the Credit Facility was approximately $44.8 million at October 29, 2016 . |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 29, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company's liability for unrecognized tax benefits associated with uncertain tax positions is recorded within other non-current liabilities. There has been no material change in the reserve for unrecognized tax benefits since the end of the previous year. The Company recognizes interest and penalties related to unrecognized tax benefits as components of income tax expense. The Company and its subsidiaries are subject to U.S. federal income taxes and the income tax obligations of various state and local jurisdictions. The Company is currently under examination by the Internal Revenue Service (“IRS”) for fiscal 2013. Periods after the fiscal 2012 transition period remain subject to examination by the IRS. With few exceptions, the Company is not subject to state income tax examination by tax authorities for taxable years prior to fiscal 2011. As of October 29, 2016 , the Company had no other ongoing audits and does not expect the liability for unrecognized tax benefits to significantly increase or decrease in the next twelve months. In April 2015, the Company settled the IRS examination of the Fiscal 2011 tax year. The settlement was related to certain issues which the Company had previously reflected net of tax within deferred tax assets. The settlement did not result in any cash payments nor any impact to tax expense. Deferred income tax assets represent potential future income tax benefits. Realization of these assets is ultimately dependent upon future taxable income. ASC 740 Income Taxes requires that deferred tax assets be reduced by a valuation allowance if, based on all available evidence, it is considered more likely than not that some or all of the recorded deferred tax assets will not be realized in a future period. Forming a conclusion that a valuation allowance is not needed is difficult when negative evidence such as cumulative losses exists. In fiscal 2015, the continuation of net losses prompted management to further consider the realizability of the deferred tax assets. Although management’s evaluation considered the effects of improved sales trends on future taxable income, estimates such as these are inherently subjective. Without significant positive evidence to overcome the weight of possible future cumulative losses, the Company established a valuation allowance against its deferred tax assets in the fourth quarter of fiscal 2015. A non-cash provision of $37.5 million was recognized to establish the valuation allowance. A small deferred tax asset was allowed related to certain state tax benefits. As of October 29, 2016 , the possibility of future cumulative losses still exists. Accordingly, the Company has continued to maintain a valuation allowance against its net deferred tax assets; recording the valuation allowance does not have any impact on cash and does not prevent the Company from using the deferred tax assets in future periods when profits are realized. As of October 29, 2016 , the Company had federal and state net operating loss carryforwards which will reduce future taxable income. Approximately $30.0 million in net federal tax benefits are available from these loss carryforwards of approximately $85.7 million , and an additional $1.3 million is available in net tax credit carryforwards. Included in the federal net operating loss is approximately $5.3 million of loss generated by deductions related to equity-based compensation, the tax effect of which will be recorded to additional paid-in capital when utilized. The state loss carryforwards will result in net state tax benefits of approximately $2.3 million . The federal net operating loss carryovers will expire in October 2032 and beyond. The state net operating loss carryforwards will expire in November 2016 and beyond. Additionally, the Company has charitable contribution carryforwards that will expire in 2016 and beyond. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Oct. 29, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table sets forth the calculation of basic and diluted earnings per share (“EPS”) shown on the face of the accompanying consolidated statement of operations: Thirteen Weeks Ended Thirty-Nine Weeks Ended October 29, October 31, October 29, October 31, 2016 2015 2016 2015 Numerator (in thousands) : Net income (loss) attributable to Christopher & Banks Corporation $ 3,493 $ (315 ) $ (559 ) $ (2,467 ) Denominator (in thousands) : Weighted average common shares outstanding - basic 37,075 36,906 36,992 36,877 Dilutive shares 78 — — — Weighted average common and common equivalent shares outstanding - diluted 37,153 36,906 36,992 36,877 Net income (loss) per common share: Basic $ 0.09 $ (0.01 ) $ (0.02 ) $ (0.07 ) Diluted $ 0.09 $ (0.01 ) $ (0.02 ) $ (0.07 ) Total stock options of approximately 3.2 million and 2.8 million were excluded from the shares used in computation of diluted earnings per shares for the thirteen week periods ended October 29, 2016 and October 31, 2015 , respectively, as they were anti-dilutive. Total stock options of approximately 2.8 million and 0.8 million were excluded from the shares used in the computation of diluted earnings per share for the thirty-nine week periods ended October 29, 2016 and October 31, 2015 , respectively, as they were anti-dilutive. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Oct. 29, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. Assets and liabilities recorded at fair value are categorized using defined hierarchical levels directly related to the amount of subjectivity associated with the inputs to fair value measurements, as follows: Level 1 – Quoted prices in active markets for identical assets or liabilities; Level 2 – Inputs other than quoted prices included in Level 1 that are either directly or indirectly observable; and Level 3 – Unobservable inputs that are significant to the fair value of the asset or liability. Assets that are Measured at Fair Value on a Recurring Basis: No investments were held by the Company as of October 29, 2016 . There were no transfers of assets between Level 1 and Level 2 of the fair value measurement hierarchy during the thirty-nine week periods ended October 29, 2016 , and October 31, 2015 . Consistent with Company policy, transfers into levels and transfers out of levels are recognized on the date of the event or when a change in circumstances causes a transfer. Assets that are Measured at Fair Value on a Non-recurring Basis: The following table summarizes certain information for non-financial assets for the thirty-nine weeks ended October 29, 2016 and the fiscal year ended January 30, 2016 , that are measured at fair value on a non-recurring basis in periods subsequent to an initial recognition period. The Company places amounts into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date. Thirty-Nine Weeks Ended Fiscal Year Ended Long-Lived Assets Held and Used (in thousands) : October 29, 2016 January 30, 2016 Carrying value $ 567 $ 356 Fair value measured using Level 3 inputs $ 91 $ 75 Impairment charge $ 476 $ 281 All of the fair value measurements included in the table above were based on significant unobservable inputs (Level 3). The Company determines fair value for measuring assets on a non-recurring basis using a discounted cash flow approach as discussed in Note 1, Nature of Business and Significant Accounting Policies in our Annual Report on Form 10-K for the year ended January 30, 2016 . In determining future cash flows, the Company uses its best estimate of future operating results, which requires the use of significant estimates and assumptions, including estimated sales, merchandise margin and expense levels, and the selection of an appropriate discount rate; therefore, differences in the estimates or assumptions could produce significantly different results. General economic uncertainty impacting the retail industry and continuation of recent trends in company performance makes it reasonably possible that additional long-lived asset impairments could be identified and recorded in future periods. The fair value measurement of the long-lived assets encompasses the following significant unobservable inputs: Range Unobservable Inputs Fiscal 2016 Fiscal 2015 Weighted Average Cost of Capital 15% 15% Annual sales growth 0% to 2.1% 0% to 8% n |
Legal Proceedings
Legal Proceedings | 9 Months Ended |
Oct. 29, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Proceedings | Legal Proceedings The Company is subject, from time to time, to various claims, lawsuits or actions that arise in the ordinary course of business. The ultimate resolution of such matters is inherently uncertain and for some matters, we are currently unable to predict the ultimate outcome, determine whether a liability has been incurred or make an estimate of the reasonably possible liability that could result from an unfavorable outcome because of these uncertainties. Although the amount of any liability that could arise with respect to such matters cannot be accurately predicted, the Company does not currently believe that the resolution of any pending matter will have a material adverse effect on its financial position, results of operations or liquidity. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Oct. 29, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting In the table below, the Retail Operations includes activity generated by the Company’s retail store locations (Missy Petite Women ("MPW") stores, outlets stores, Christopher & Banks stores, and C.J. Banks stores) as well as the eCommerce business. Retail Operations only includes net sales, merchandise gross margin and direct store expenses with no allocation of corporate overhead as that is the information used by the chief operating decision maker to evaluate performance and to allocate resources. The Corporate/Administrative balances include supporting administrative activity at the corporate office and distribution center facility and are included to reconcile the amounts to the condensed consolidated financial statements. Business Segment Information (in thousands) Retail Corporate/ Operations Administrative Consolidated Thirteen Weeks Ended October 29, 2016 Net sales $ 106,668 $ — $ 106,668 Depreciation and amortization 2,484 635 3,119 Impairment of store assets — — — Operating income (loss) 16,890 (13,271 ) 3,619 Thirteen Weeks Ended October 31, 2015 Net sales $ 103,641 $ — $ 103,641 Depreciation and amortization 2,510 606 3,116 Impairment of store assets 67 — 67 Operating income (loss) 14,209 (13,874 ) 335 Thirty-Nine Weeks Ended October 29, 2016 Net sales $ 296,625 $ — $ 296,625 Depreciation and amortization 7,231 1,885 9,116 Impairment of store assets 476 — 476 Operating income (loss) 40,410 (41,505 ) (1,095 ) Total assets 107,251 45,092 152,343 Thirty-Nine Weeks Ended October 31, 2015 Net sales $ 289,259 $ — $ 289,259 Depreciation and amortization 6,902 1,831 8,733 Impairment of store assets 182 — 182 Operating income (loss) 34,657 (38,528 ) (3,871 ) Total assets 121,247 76,095 197,342 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Oct. 29, 2016 | |
Accounting Policies [Abstract] | |
Recently issued accounting pronouncements | Recently issued accounting pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued authoritative guidance under Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers . ASU 2014-09 supersedes existing revenue recognition requirements and provides a new comprehensive revenue recognition model that requires entities to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers, Deferral of the Effective Date , which defers the effective date of the new revenue recognition standard by one year. As a result, ASU 2014-09 is effective retrospectively for fiscal years and interim periods within those years beginning after December 15, 2017. The adoption will include updates as provided under ASU No. 2016-08, Revenue from Contracts with Customers, Principal versus Agent Considerations (Reporting Revenue Gross versus Net); ASU No. 2016-10, Revenue from Contracts with Customers, Identifying Performance Obligations and Licensing; and ASU No. 2016-12, Revenue from Contracts with Customers, Narrow-Scope Improvements and Practical Expedients. Adoption is allowed by either the full retrospective or modified retrospective approach. The Company is currently evaluating which approach it will apply and the potential impact on our condensed consolidated financial statements. In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes , which requires entities with a classified balance sheet to present all deferred tax assets and liabilities as noncurrent. The Company elected early adoption of this guidance for the fiscal year ended January 30, 2016 , on a prospective basis. The adoption of this ASU allows the Company to simplify its presentation of deferred income tax liabilities and assets. Prior periods were not retrospectively adjusted. In February 2016, the FASB issued ASU 2016-02, Leases , which requires that all lease arrangements longer than twelve months result in an entity recognizing a lease asset and a lease liability on the balance sheet. The updated guidance is effective for interim and annual periods beginning after December 15, 2018, and early adoption is permitted. We have not evaluated the impact of the updated guidance on our condensed consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718) - Improvements to Employee Share-Based Payment Accounting, which simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards, and classification on the statement of cash flows. One provision of this guidance requires the recognition of income tax effects of awards in the statement of operation when the awards vest or are settled, rather than within additional paid-in capital on the balance. The standard is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The Company does not expect that the adoption of this pronouncement will have a material impact on its condensed consolidated financial statements. |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Oct. 29, 2016 | |
Investments [Abstract] | |
Schedule of Cost and Fair Value of Investments | Investments as of January 30, 2016, consisted of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Short-term investments: Corporate bonds $ 2,810 $ 1 $ (1 ) $ 2,810 Municipal bonds 205 — — 205 Total investments $ 3,015 $ 1 $ (1 ) $ 3,015 |
Merchandise Inventories and S21
Merchandise Inventories and Sources of Supply (Tables) | 9 Months Ended |
Oct. 29, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of merchandise inventories | Merchandise inventories consisted of the following (in thousands): October 29, 2016 January 30, 2016 Merchandise - in store/eCommerce $ 45,836 $ 31,751 Merchandise - in transit 8,249 10,730 Total merchandise inventories $ 54,085 $ 42,481 |
Property, Equipment and Impro22
Property, Equipment and Improvements, Net (Tables) | 9 Months Ended |
Oct. 29, 2016 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, equipment and improvements, net consisted of the following (in thousands): Description October 29, 2016 January 30, 2016 Land $ 1,597 $ 1,597 Corporate office, distribution center and related building improvements 12,627 12,618 Store leasehold improvements 51,088 52,812 Store furniture and fixtures 71,874 74,513 Corporate office and distribution center furniture, fixtures and equipment 4,266 4,356 Computer and point of sale hardware and software 35,896 32,644 Construction in progress 4,684 5,781 Total property, equipment and improvements, gross 182,032 184,321 Less accumulated depreciation and amortization (124,560 ) (125,097 ) Total property, equipment and improvements, net $ 57,472 $ 59,224 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 9 Months Ended |
Oct. 29, 2016 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of other accrued liabilities | Accrued liabilities and other current liabilities consisted of the following (in thousands): October 29, 2016 January 30, 2016 Gift card and store credit liabilities $ 4,731 $ 8,029 Accrued Friendship Rewards Loyalty Program liability 3,991 3,838 Accrued income, sales and other taxes payable 2,779 1,622 Accrued occupancy-related expenses 3,658 3,017 Sales return reserve 1,970 1,309 eCommerce operations 3,319 1,162 Other accrued liabilities 3,030 5,593 Total accrued liabilities and other current liabilities $ 23,478 $ 24,570 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Oct. 29, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | The following table sets forth the calculation of basic and diluted earnings per share (“EPS”) shown on the face of the accompanying consolidated statement of operations: Thirteen Weeks Ended Thirty-Nine Weeks Ended October 29, October 31, October 29, October 31, 2016 2015 2016 2015 Numerator (in thousands) : Net income (loss) attributable to Christopher & Banks Corporation $ 3,493 $ (315 ) $ (559 ) $ (2,467 ) Denominator (in thousands) : Weighted average common shares outstanding - basic 37,075 36,906 36,992 36,877 Dilutive shares 78 — — — Weighted average common and common equivalent shares outstanding - diluted 37,153 36,906 36,992 36,877 Net income (loss) per common share: Basic $ 0.09 $ (0.01 ) $ (0.02 ) $ (0.07 ) Diluted $ 0.09 $ (0.01 ) $ (0.02 ) $ (0.07 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Oct. 29, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets measured at fair value on a non-recurring basis | The following table summarizes certain information for non-financial assets for the thirty-nine weeks ended October 29, 2016 and the fiscal year ended January 30, 2016 , that are measured at fair value on a non-recurring basis in periods subsequent to an initial recognition period. The Company places amounts into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date. Thirty-Nine Weeks Ended Fiscal Year Ended Long-Lived Assets Held and Used (in thousands) : October 29, 2016 January 30, 2016 Carrying value $ 567 $ 356 Fair value measured using Level 3 inputs $ 91 $ 75 Impairment charge $ 476 $ 281 |
Schedule of unobservable inputs | The fair value measurement of the long-lived assets encompasses the following significant unobservable inputs: Range Unobservable Inputs Fiscal 2016 Fiscal 2015 Weighted Average Cost of Capital 15% 15% Annual sales growth 0% to 2.1% 0% to 8% |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Oct. 29, 2016 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting | Business Segment Information (in thousands) Retail Corporate/ Operations Administrative Consolidated Thirteen Weeks Ended October 29, 2016 Net sales $ 106,668 $ — $ 106,668 Depreciation and amortization 2,484 635 3,119 Impairment of store assets — — — Operating income (loss) 16,890 (13,271 ) 3,619 Thirteen Weeks Ended October 31, 2015 Net sales $ 103,641 $ — $ 103,641 Depreciation and amortization 2,510 606 3,116 Impairment of store assets 67 — 67 Operating income (loss) 14,209 (13,874 ) 335 Thirty-Nine Weeks Ended October 29, 2016 Net sales $ 296,625 $ — $ 296,625 Depreciation and amortization 7,231 1,885 9,116 Impairment of store assets 476 — 476 Operating income (loss) 40,410 (41,505 ) (1,095 ) Total assets 107,251 45,092 152,343 Thirty-Nine Weeks Ended October 31, 2015 Net sales $ 289,259 $ — $ 289,259 Depreciation and amortization 6,902 1,831 8,733 Impairment of store assets 182 — 182 Operating income (loss) 34,657 (38,528 ) (3,871 ) Total assets 121,247 76,095 197,342 |
Investments (Details)
Investments (Details) - USD ($) | 9 Months Ended | ||
Oct. 29, 2016 | Oct. 31, 2015 | Jan. 30, 2016 | |
Available-for-sale securities | |||
Amortized Cost | $ 3,015,000 | ||
Unrealized Gains | 1,000 | ||
Unrealized Losses | (1,000) | ||
Estimated Fair Value | $ 0 | 3,015,000 | |
Purchases of available-for-sale securities | 0 | $ 0 | |
Maturities of available-for-sale investments | 3,005,000 | 13,007,000 | |
Other than temporary impairment of available-for-sale securities | $ 0 | $ 0 | |
Corporate bonds | Short-term investments | |||
Available-for-sale securities | |||
Amortized Cost | 2,810,000 | ||
Unrealized Gains | 1,000 | ||
Unrealized Losses | (1,000) | ||
Estimated Fair Value | 2,810,000 | ||
Municipal bonds | Short-term investments | |||
Available-for-sale securities | |||
Amortized Cost | 205,000 | ||
Unrealized Gains | 0 | ||
Unrealized Losses | 0 | ||
Estimated Fair Value | $ 205,000 |
Merchandise Inventories and S28
Merchandise Inventories and Sources of Supply (Details) - USD ($) $ in Thousands | Oct. 29, 2016 | Jan. 30, 2016 |
Inventory Disclosure [Abstract] | ||
Merchandise - in store/eCommerce | $ 45,836 | $ 31,751 |
Merchandise - in transit | 8,249 | 10,730 |
Total merchandise inventories | $ 54,085 | $ 42,481 |
Property, Equipment and Impro29
Property, Equipment and Improvements, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Oct. 29, 2016 | Oct. 31, 2015 | Oct. 29, 2016 | Oct. 31, 2015 | Jan. 30, 2016 | |
Property, equipment and improvements | |||||
Total property, equipment and improvements, gross | $ 182,032 | $ 182,032 | $ 184,321 | ||
Less accumulated depreciation and amortization | (124,560) | (124,560) | (125,097) | ||
Total property, equipment and improvements, net | 57,472 | 57,472 | 59,224 | ||
Impairment of store assets | 0 | $ 67 | 476 | $ 182 | 281 |
Land | |||||
Property, equipment and improvements | |||||
Total property, equipment and improvements, gross | 1,597 | 1,597 | 1,597 | ||
Corporate office, distribution center and related building improvements | |||||
Property, equipment and improvements | |||||
Total property, equipment and improvements, gross | 12,627 | 12,627 | 12,618 | ||
Store leasehold improvements | |||||
Property, equipment and improvements | |||||
Total property, equipment and improvements, gross | 51,088 | 51,088 | 52,812 | ||
Store furniture and fixtures | |||||
Property, equipment and improvements | |||||
Total property, equipment and improvements, gross | 71,874 | 71,874 | 74,513 | ||
Corporate office and distribution center furniture, fixtures and equipment | |||||
Property, equipment and improvements | |||||
Total property, equipment and improvements, gross | 4,266 | 4,266 | 4,356 | ||
Computer and point of sale hardware and software | |||||
Property, equipment and improvements | |||||
Total property, equipment and improvements, gross | 35,896 | 35,896 | 32,644 | ||
Construction in progress | |||||
Property, equipment and improvements | |||||
Total property, equipment and improvements, gross | $ 4,684 | $ 4,684 | $ 5,781 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Oct. 29, 2016 | Jan. 30, 2016 |
Accrued Liabilities, Current [Abstract] | ||
Gift card and store credit liabilities | $ 4,731 | $ 8,029 |
Accrued Friendship Rewards Loyalty Program liability | 3,991 | 3,838 |
Accrued income, sales and other taxes payable | 2,779 | 1,622 |
Accrued occupancy-related expenses | 3,658 | 3,017 |
Sales return reserve | 1,970 | 1,309 |
eCommerce operations | 3,319 | 1,162 |
Other accrued liabilities | 3,030 | 5,593 |
Total accrued liabilities and other current liabilities | $ 23,478 | $ 24,570 |
Credit Facility (Details)
Credit Facility (Details) - USD ($) | 9 Months Ended | |
Oct. 29, 2016 | Oct. 31, 2015 | |
Credit Facility | ||
Maximum availability under credit facility | $ 50,000,000 | |
Maximum availability for letters of credit | $ 10,000,000 | |
Unused commitment fee (as a percent) | 0.25% | |
Minimum availability requirement, amount | $ 3,000,000 | |
Ownership interest percentage held as collateral security | 100.00% | |
Borrowings under the credit facility | $ 0 | $ 0 |
Borrowing base | 50,000,000 | |
Open on-demand letters of credit | $ 200,000 | |
Minimum availability requirement, percentage of borrowing base | 10.00% | |
Net available borrowing capacity under the credit facility | $ 44,800,000 | |
London Interbank Offered Rate (LIBOR) | Minimum | ||
Credit Facility | ||
Basis spread on variable rate (as a percent) | 1.50% | |
London Interbank Offered Rate (LIBOR) | Maximum | ||
Credit Facility | ||
Basis spread on variable rate (as a percent) | 1.75% | |
Prime Rate | Minimum | ||
Credit Facility | ||
Basis spread on variable rate (as a percent) | 0.50% | |
Prime Rate | Maximum | ||
Credit Facility | ||
Basis spread on variable rate (as a percent) | 0.75% |
Income Taxes - DTA & DTL (Detai
Income Taxes - DTA & DTL (Details) $ in Millions | 12 Months Ended |
Jan. 30, 2016USD ($) | |
Income Tax Disclosure [Abstract] | |
Increase (decrease) in valuation allowance | $ 37.5 |
Income Taxes - Operating Loss C
Income Taxes - Operating Loss Carryforwards (Details) $ in Millions | Oct. 29, 2016USD ($) |
Operating Loss Carryforwards | |
Operating loss carryforwards | $ 85.7 |
Tax credit carryforward | 1.3 |
Federal | |
Operating Loss Carryforwards | |
Net tax benefit available | 30 |
Portion of net operating loss related to equity-based compensation | 5.3 |
State | |
Operating Loss Carryforwards | |
Net tax benefit available | $ 2.3 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2016 | Oct. 31, 2015 | Oct. 29, 2016 | Oct. 31, 2015 | |
Numerator (in thousands): | ||||
Net income (loss) attributable to Christopher & Banks Corporation | $ 3,493 | $ (315) | $ (559) | $ (2,467) |
Denominator (in thousands): | ||||
Weighted average common shares outstanding - basic (in shares) | 37,075 | 36,906 | 36,992 | 36,877 |
Dilutive shares (in shares) | 78 | 0 | 0 | 0 |
Weighted average common and common equivalent shares outstanding - diluted (in shares) | 37,153 | 36,906 | 36,992 | 36,877 |
Net income (loss) per common share: | ||||
Basic (in dollars per share) | $ 0.09 | $ (0.01) | $ (0.02) | $ (0.07) |
Diluted (in dollars per share) | $ 0.09 | $ (0.01) | $ (0.02) | $ (0.07) |
Stock options excluded from the shares used in the computation of diluted earnings per share because they were anti-dilutive (in shares) | 3,200 | 2,800 | 2,800 | 800 |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring (Details) - USD ($) | Oct. 29, 2016 | Oct. 31, 2015 |
Fair Value Disclosures [Abstract] | ||
Level 1 to Level 2 Transfers | $ 0 | $ 0 |
Level 2 to Level 1 Transfers | $ 0 | $ 0 |
Fair Value Measurements - Non-r
Fair Value Measurements - Non-recurring (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Oct. 29, 2016 | Oct. 31, 2015 | Oct. 29, 2016 | Oct. 31, 2015 | Jan. 30, 2016 | |
Fair value measurements | |||||
Carrying value | $ 567 | $ 567 | $ 356 | ||
Impairment charge | 0 | $ 67 | 476 | $ 182 | 281 |
Fair Value, Measurements, Nonrecurring | Level 3 | |||||
Fair value measurements | |||||
Fair value measured using Level 3 inputs | $ 91 | $ 91 | $ 75 |
Fair Value Measurements - Valua
Fair Value Measurements - Valuation (Details) | 9 Months Ended | 12 Months Ended |
Oct. 29, 2016 | Jan. 30, 2016 | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Weighted Average Cost of Capital | 15.00% | 15.00% |
Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Annual sales growth | 0.00% | 0.00% |
Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Annual sales growth | 2.10% | 8.00% |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Oct. 29, 2016 | Oct. 31, 2015 | Oct. 29, 2016 | Oct. 31, 2015 | Jan. 30, 2016 | |
Segment Reporting | |||||
Net sales | $ 106,668 | $ 103,641 | $ 296,625 | $ 289,259 | |
Depreciation and amortization | 3,119 | 3,116 | 9,116 | 8,733 | |
Impairment of store assets | 0 | 67 | 476 | 182 | $ 281 |
Operating income (loss) | 3,619 | 335 | (1,095) | (3,871) | |
Total assets | 152,343 | 197,342 | 152,343 | 197,342 | $ 150,890 |
Retail Operations | |||||
Segment Reporting | |||||
Net sales | 106,668 | 103,641 | 296,625 | 289,259 | |
Depreciation and amortization | 2,484 | 2,510 | 7,231 | 6,902 | |
Impairment of store assets | 0 | 67 | 476 | 182 | |
Operating income (loss) | 16,890 | 14,209 | 40,410 | 34,657 | |
Total assets | 107,251 | 121,247 | 107,251 | 121,247 | |
Corporate/ Administrative | |||||
Segment Reporting | |||||
Net sales | 0 | 0 | 0 | 0 | |
Depreciation and amortization | 635 | 606 | 1,885 | 1,831 | |
Impairment of store assets | 0 | 0 | 0 | 0 | |
Operating income (loss) | (13,271) | (13,874) | (41,505) | (38,528) | |
Total assets | $ 45,092 | $ 76,095 | $ 45,092 | $ 76,095 |