Exhibit 99.1
FOR: |
| Christopher & Banks Corporation |
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APPROVED BY: |
| Bill Prange |
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| Chairman and |
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| Chief Executive Officer |
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| (763) 551-5000 |
For Immediate Release |
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CONTACT: |
| Investor Relations: |
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| Cara O’Brien/Melissa Myron |
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| Financial Dynamics |
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| (212) 850-5600 |
CHRISTOPHER & BANKS CORPORATION REPORTS
SECOND QUARTER RESULTS
Minneapolis, MN, September 21, 2004 – Christopher & Banks Corporation (NYSE: CBK) today reported results for its second quarter and six months ended August 28, 2004.
For the second quarter, net income was $5.6 million, or $0.15 per diluted share, compared with $8.5 million, or $0.22 per diluted share, in the prior year period. Net sales for the second quarter increased 7% to $96.4 million from $89.7 million last year, while same-store sales declined 6% during the quarter.
For the six months ended August 28, 2004, net income was $15.8 million, or $0.42 per diluted share, compared with $19.6 million, or $0.51 per diluted share last year. Net sales for the six-month period increased 9% to $199.0 million from $183.1 million last year, while same-store sales declined 5%.
During the first half of the fiscal year, the Company opened 52 new stores. As of August 28, 2004 the Company operated 585 stores compared to 494 stores at August 30, 2003. Forty-two additional stores are planned for third quarter.
Bill Prange, Chairman and Chief Executive Officer of Christopher & Banks Corporation commented, “In the second quarter, we continued to implement changes to our merchandise assortment that we believe will resonate with our core customer. The impact of these changes has not yet been realized as, based on month-to-date performance, September same-store sales are
anticipated to be down eight percent. However, we are encouraged that we have identified a number of popular styles that have produced early strong sales. Reorders of these items will begin flowing into our stores in October with heavier receipts expected in November. We currently plan to provide further guidance on third quarter results after October, the second month of our quarter, is completed.”
The Company also announced that it repurchased 69,500 shares of common stock in September. Since the inception of its repurchase program in February 2004, the Company has purchased 2,163,500 shares of its common stock at a total cost of $36.6 million.
The Company will discuss its second quarter results in a conference call scheduled for today, September 21, 2004, at 5:00 p.m. Eastern Time. The conference call will be simultaneously broadcast live over the Internet at http://www.christopherandbanks.com.
Christopher & Banks Corporation is a Minneapolis-based specialty retailer of women’s clothing providing exclusive fashions under the Christopher & Banks and C.J. Banks labels. Currently, the Company operates 588 stores in 44 states. For more information on Christopher & Banks Corporation, visit the Company’s website at www.christopherandbanks.com.
This release contains forward-looking statements regarding future performance of the Company. The achievement of such results is subject to certain risks and uncertainties, including changes in economic, market and weather conditions, the effect of consumer tastes and spending habits, the realization of expected economies gained through the use of private label and direct import merchandise, management of growth and other factors outside the Company’s control, including factors discussed from time to time in the Company’s filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on forward-looking statements, which reflect management’s analysis only as of the date hereof. The Company undertakes no obligation to update these forward-looking statements to reflect events or circumstances that may arise after the date hereof.
Financial Tables Follow
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CHRISTOPHER & BANKS CORPORATION
COMPARATIVE INCOME STATEMENT
FOR THE THREE AND SIX MONTHS ENDED
AUGUST 28, 2004 AND AUGUST 30, 2003
(in thousands, except per share data)
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| Three Months Ended |
| Six Months Ended |
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| August 28, |
| August 30, |
| August 28, |
| August 30, |
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| (Unaudited) |
| (Unaudited) |
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Net sales |
| $ | 96,373 |
| $ | 89,710 |
| $ | 198,998 |
| $ | 183,083 |
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Merchandise, buying and occupancy |
| 59,834 |
| 51,474 |
| 118,349 |
| 101,564 |
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Gross profit |
| 36,539 |
| 38,236 |
| 80,649 |
| 81,519 |
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Selling, general and administrative |
| 24,431 |
| 21,793 |
| 49,084 |
| 44,491 |
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Depreciation and amortization |
| 3,259 |
| 2,797 |
| 6,406 |
| 5,448 |
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Operating income |
| 8,849 |
| 13,646 |
| 25,159 |
| 31,580 |
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Interest income |
| 242 |
| 183 |
| 500 |
| 399 |
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Income before income taxes |
| 9,091 |
| 13,829 |
| 25,659 |
| 31,979 |
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Income tax provision |
| 3,509 |
| 5,338 |
| 9,904 |
| 12,344 |
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Net income |
| $ | 5,582 |
| $ | 8,491 |
| $ | 15,755 |
| $ | 19,635 |
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Basic earnings per share: |
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Net income |
| $ | 0.15 |
| $ | 0.23 |
| $ | 0.43 |
| $ | 0.53 |
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Basic shares outstanding |
| 36,393 |
| 37,440 |
| 36,949 |
| 37,334 |
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Diluted earnings per share: |
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Net income |
| $ | 0.15 |
| $ | 0.22 |
| $ | 0.42 |
| $ | 0.51 |
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Diluted shares outstanding |
| 36,900 |
| 38,450 |
| 37,518 |
| 38,242 |
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Dividends per share |
| $ | 0.04 |
| $ | — |
| $ | 0.08 |
| $ | — |
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~ more ~
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CHRISTOPHER & BANKS CORPORATION
COMPARATIVE BALANCE SHEET
(in thousands)
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| August 28, 2004 |
| August 30, 2003 |
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| (Unaudited) |
| (Unaudited) |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
| $ | 21,113 |
| $ | 9,187 |
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Short-term investments |
| 29,942 |
| 54,835 |
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Merchandise inventory – in store |
| 26,906 |
| 23,955 |
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Merchandise inventory – in transit |
| 14,690 |
| 7,887 |
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Other current assets |
| 13,571 |
| 12,662 |
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Total current assets |
| 106,222 |
| 108,526 |
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Property, equipment and improvements, net |
| 87,499 |
| 77,308 |
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Other assets |
| 149 |
| 80 |
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Total assets |
| $ | 193,870 |
| $ | 185,914 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable |
| $ | 11,279 |
| $ | 5,283 |
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Accrued liabilities |
| 12,300 |
| 11,920 |
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Total current liabilities |
| 23,579 |
| 17,203 |
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Long-term obligations |
| 9,684 |
| 4,817 |
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Stockholders’ equity: |
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Common stock |
| 423 |
| 421 |
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Additional paid-in capital |
| 59,785 |
| 57,167 |
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Retained earnings |
| 156,057 |
| 126,580 |
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Common stock held in treasury |
| (55,658 | ) | (20,274 | ) | ||
Total stockholders’ equity |
| 160,607 |
| 163,894 |
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Total liabilities and stockholders’ equity |
| $ | 193,870 |
| $ | 185,914 |
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# # #
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