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
CONTACT: |
| Investor Relations: |
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| Melissa Myron/Rachel Albert |
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| Financial Dynamics |
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| (212) 850-5600 |
CHRISTOPHER & BANKS CORPORATION REPORTS
THIRD QUARTER RESULTS
Minneapolis, MN, December 21, 2004 — Christopher & Banks Corporation (NYSE: CBK) today reported results for its third quarter and nine months ended November 27, 2004.
Net sales for the third quarter increased 12% to $120.6 million from $107.3 million last year, while same-store sales declined 1% during the quarter. In line with recently revised expectations, net income was $7.8 million, or $0.22 per diluted share, compared with $11.4 million, or $0.29 per diluted share, in the prior year period.
For the nine months ended November 27, 2004, net sales increased 10% to $319.6 million from $290.4 million last year, while same-store sales declined 4%. Net income was $23.5 million, or $0.64 per diluted share, compared with $31.0 million, or $0.81 per diluted share last year. As of November 27, 2004 the Company operated 648 stores compared to 535 stores at November 29, 2003.
Bill Prange, Chairman and Chief Executive Officer of Christopher & Banks Corporation commented, “Throughout much of the third quarter and particularly in late November we encountered a cautious consumer. While sales results were disappointing for the quarter, we responded to the sluggish consumer demand by taking the markdowns necessary to keep our
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CHRISTOPHER & BANKS CORPORATION REPORTS Page 2
THIRD QUARTER RESULTS
inventories on plan. We finished the quarter with total inventory per square foot being flat with last year.”
Mr. Prange concluded, “Based on month to date performance and our expectations for the balance of the month, we anticipate that December same-store sales will decline in the range of 6% to 7%. We do, however, anticipate that December merchandise margins will improve modestly over last year’s levels. Further, we anticipate that the benefits of a calendar shift will have a positive impact on January same-store sales. Last year December 26th and 27th were included in the Company’s fiscal December, whereas this year those two days are included in the Company’s fiscal January.”
Consistent with the approach in recent quarters, the Company will provide earnings guidance for its fourth quarter ending February 26, 2005 on February 3, 2005 when January sales results are released.
The Company will discuss its third quarter results in a conference call scheduled for today, December 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.
Same-store sales for the Company’s fiscal month ending December 25, 2004 will be reported on December 30, 2004 before the market opens.
Christopher & Banks Corporation is a Minneapolis-based specialty retailer of women’s clothing. The Company operates 648 stores in 44 states under the names: Christopher & Banks, C.J. Banks and Acorn. The Company currently has 472 Christopher & Banks stores, 155 C.J. Banks stores and 21 Acorn stores.
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 REPORTS Page 3
THIRD QUARTER RESULTS
CHRISTOPHER & BANKS CORPORATION
COMPARATIVE INCOME STATEMENT
FOR THE THREE AND NINE MONTHS ENDED
NOVEMBER 27, 2004 AND NOVEMBER 29, 2003
(in thousands, except per share data)
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| Three Months Ended |
| Nine Months Ended |
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| November 27, 2004 |
| November 29, 2003 |
| November 27, 2004 |
| November 29, 2003 |
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| (Unaudited) |
| (Unaudited) |
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Net sales |
| $ | 120,592 |
| $ | 107,285 |
| $ | 319,590 |
| $ | 290,368 |
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Merchandise, buying and occupancy, exclusive of depreciation and amortization shown separately below |
| 75,569 |
| 62,211 |
| 193,918 |
| 163,775 |
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Gross profit, exclusive of depreciation and amortization shown separately below |
| 45,023 |
| 45,074 |
| 125,672 |
| 126,593 |
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Selling, general and administrative |
| 29,042 |
| 23,629 |
| 78,126 |
| 68,120 |
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Depreciation and amortization |
| 3,476 |
| 3,044 |
| 9,882 |
| 8,492 |
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Operating income |
| 12,505 |
| 18,401 |
| 37,664 |
| 49,981 |
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Interest income |
| 189 |
| 150 |
| 689 |
| 549 |
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Income before income taxes |
| 12,694 |
| 18,551 |
| 38,353 |
| 50,530 |
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Income tax provision |
| 4,900 |
| 7,161 |
| 14,804 |
| 19,505 |
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Net income |
| $ | 7,794 |
| $ | 11,390 |
| $ | 23,549 |
| $ | 31,025 |
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Basic earnings per share: |
| $ | 0.22 |
| $ | 0.30 |
| $ | 0.64 |
| $ | 0.83 |
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Basic shares outstanding |
| 35,680 |
| 37,747 |
| 36,526 |
| 37,472 |
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Diluted earnings per share: |
| $ | 0.22 |
| $ | 0.29 |
| $ | 0.64 |
| $ | 0.81 |
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Diluted shares outstanding |
| 36,161 |
| 38,705 |
| 37,066 |
| 38,398 |
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~ more ~
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CHRISTOPHER & BANKS CORPORATION REPORTS Page 4
THIRD QUARTER RESULTS
CHRISTOPHER & BANKS CORPORATION
COMPARATIVE BALANCE SHEET
(in thousands)
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| November 27, 2004 |
| November 29, 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 |
| $ | 24,313 |
| $ | 21,157 |
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Short-term investments |
| 17,000 |
| 50,865 |
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Merchandise inventories |
| 48,325 |
| 40,229 |
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Income taxes receivable |
| 3,221 |
| — |
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Other current assets |
| 12,921 |
| 10,251 |
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Total current assets |
| 105,780 |
| 122,502 |
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Property, equipment and improvements, net |
| 91,920 |
| 78,255 |
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Other assets: |
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Goodwill and intangible assets |
| 4,408 |
| — |
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Other |
| 147 |
| 85 |
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Total other assets |
| 4,555 |
| 85 |
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Total assets |
| $ | 202,255 |
| $ | 200,842 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable |
| $ | 12,118 |
| $ | 4,599 |
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Accrued liabilities |
| 16,637 |
| 15,546 |
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Total current liabilities |
| 28,755 |
| 20,145 |
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Other liabilities |
| 10,370 |
| 4,997 |
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Stockholders’ equity: |
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Common stock |
| 425 |
| 422 |
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Additional paid-in capital |
| 60,859 |
| 59,090 |
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Retained earnings |
| 162,422 |
| 136,462 |
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Common stock held in treasury |
| (60,576 | ) | (20,274 | ) | ||
Total stockholders’ equity |
| 163,130 |
| 175,700 |
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Total liabilities and stockholders’ equity |
| $ | 202,255 |
| $ | 200,842 |
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# # #
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