Exhibit 99.1
2400 Xenium Lane North, Plymouth, MN 55441• (763)551-5000 • Fax (763)551-5198 • www.christopherandbanks.com
FOR: |
| Christopher & Banks Corporation |
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APPROVED BY: |
| Bill Prange |
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| Chairman and Chief Executive Officer |
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| (763) 551-5000 |
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CONTACT: |
| Investor Relations: |
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| Melissa Myron/Rachel Albert |
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| Financial Dynamics |
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| (212) 850-5600 |
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FOR IMMEDIATE RELEASE |
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CHRISTOPHER & BANKS CORPORATION REPORTS
FIRST QUARTER RESULTS
Minneapolis, MN, June 21, 2005 – Christopher & Banks Corporation (NYSE: CBK) today reported results for the first quarter ended May 28, 2005.
Net sales increased 20% to $122.7 million from $102.6 million last year, while same-store sales increased 4%. Net income was $9.3 million, or $0.26 per diluted share, compared to $10.0 million, or $0.26 per diluted share, as restated for lease accounting changes for the quarter ended May 29, 2004.
The Company opened 19 new stores and closed one store in the first quarter, bringing the total number of stores as of May 28, 2005 to 660 compared to 566 stores as of May 29, 2004.
Bill Prange, Chairman and Chief Executive Officer, commented, “While first quarter earnings were softer than expected, we are encouraged by our four percent increase in same-store sales. At the end of the first quarter, inventories were current as evidenced by in-store inventories per square foot that were modestly below last year’s levels. With a clean inventory position, we anticipate an improved level of full price selling in the second quarter as compared to last year.”
Mr. Prange concluded, “To date, our June business has been strong and we currently anticipate a six to seven percent increase in same-store sales for the month ending June 25, 2005, with a level of full price selling similar to last June. We are optimistic about recent results and believe we are well-positioned for the second quarter.”
The Company will discuss its first quarter results in a conference call scheduled for today, June 21, 2005, at 5 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. The Company currently operates 660 women’s specialty stores in 45 states under the names: Christopher & Banks, C.J. Banks and Acorn. The Company currently has 478 Christopher & Banks stores, 161 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 To Follow)
2
CHRISTOPHER & BANKS CORPORATION
UNAUDITED COMPARATIVE INCOME STATEMENT
FOR THE QUARTERS ENDED MAY 28, 2005 AND MAY 29, 2004
(in thousands, except per-share data)
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| Quarter Ended |
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| May 28, |
| May 29, |
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| (Restated) |
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Net sales |
| $ | 122,678 |
| $ | 102,625 |
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Merchandise, buying and occupancy |
| 72,073 |
| 58,149 |
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Gross profit |
| 50,605 |
| 44,476 |
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Selling, general and administrative |
| 31,292 |
| 24,653 |
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Depreciation and amortization |
| 4,477 |
| 3,736 |
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Operating income |
| 14,836 |
| 16,087 |
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Interest income |
| 327 |
| 258 |
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Income before income taxes |
| 15,163 |
| 16,345 |
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Income tax provision |
| 5,853 |
| 6,309 |
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Net income |
| $ | 9,310 |
| $ | 10,036 |
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Basic earnings per share: |
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Net income |
| $ | 0.26 |
| $ | 0.27 |
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Basic shares outstanding |
| 35,752 |
| 37,506 |
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Diluted earnings per share: |
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Net income |
| $ | 0.26 |
| $ | 0.26 |
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Diluted shares outstanding |
| 36,104 |
| 38,136 |
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3
CHRISTOPHER & BANKS CORPORATION
UNAUDITED COMPARATIVE BALANCE SHEET
(in thousands)
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| May 28, |
| February 26, |
| May 29, |
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| (Restated) |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
| $ | 31,535 |
| $ | 14,063 |
| $ | 6,891 |
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Short-term investments |
| 34,766 |
| 46,748 |
| 80,755 |
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Merchandise inventories |
| 36,620 |
| 40,525 |
| 34,833 |
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Other current assets |
| 11,277 |
| 11,277 |
| 7,656 |
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Total current assets |
| 114,198 |
| 112,613 |
| 130,135 |
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Property, equipment and improvements, net |
| 112,759 |
| 112,060 |
| 99,695 |
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Other assets: |
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Goodwill |
| 3,587 |
| 3,587 |
| — |
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Other |
| 975 |
| 944 |
| 144 |
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Total other assets |
| 4,562 |
| 4,531 |
| 144 |
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Total assets |
| $ | 231,519 |
| $ | 229,204 |
| $ | 229,974 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable |
| $ | 7,097 |
| $ | 12,323 |
| $ | 6,471 |
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Accrued liabilities |
| 18,877 |
| 18,733 |
| 20,044 |
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Total current liabilities |
| 25,974 |
| 31,056 |
| 26,515 |
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Other liabilities: |
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Deferred lease incentives |
| 19,868 |
| 20,648 |
| 17,790 |
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Other |
| 13,721 |
| 14,291 |
| 10,907 |
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Total other liabilities |
| 33,589 |
| 34,939 |
| 28,697 |
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Stockholders’ equity: |
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Common stock |
| 426 |
| 425 |
| 423 |
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Additional paid-in capital |
| 61,900 |
| 61,036 |
| 59,786 |
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Retained earnings |
| 170,206 |
| 162,324 |
| 149,645 |
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Common stock held in treasury |
| (60,576 | ) | (60,576 | ) | (35,092 | ) | |||
Total stockholders’ equity |
| 171,956 |
| 163,209 |
| 174,762 |
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Total liabilities and stockholders’ equity |
| $ | 231,519 |
| $ | 229,204 |
| $ | 229,974 |
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