Christopher & Banks (CBKCQ) 8-K Results of Operations and Financial Condition

Exhibit 99.1

FOR:	Christopher & Banks Corporation
APPROVED BY:	Bill Prange
	Chairman and
	Chief Executive Officer
	(763) 551-5000
For Immediate Release
CONTACT:	Investor Relations:
	Melissa Myron/Rachel Albert
	Financial Dynamics
	(212) 850-5600

CHRISTOPHER & BANKS CORPORATION REPORTS

SECOND QUARTER RESULTS

Minneapolis, MN, September 20, 2005 – Christopher & Banks Corporation (NYSE: CBK) today reported results for its second quarter and six months ended August 27, 2005.

For the second quarter, net income was $5.7 million, or $0.16 per diluted share, compared with $5.5 million, or $0.15 per diluted share, as restated for lease accounting changes, in the prior year period.  Net sales for the second quarter increased 15% to $110.8 million from $96.4 million last year, while same-store sales rose 3% during the quarter.

For the six months ended August 27, 2005, net income was $15.0 million, or $0.41 per diluted share, compared with $15.5 million, or $0.41 per diluted share, as restated for lease accounting changes, in the prior year period.  Net sales for the six-month period increased 17% to $233.5 million from $199.0 million last year, while same-store sales increased 3%.

During the first half of the fiscal year, the Company opened 35 new stores. As of August 27, 2005 the Company operated 674 stores compared to 585 stores at August 28, 2004.  Approximately 34 additional new stores are planned to open in the third quarter.

Bill Prange, Chairman and Chief Executive Officer of Christopher & Banks Corporation commented, “We are pleased that our second quarter merchandise margins showed improvement over last year, primarily due to a lower level of markdowns. While we have made progress in increasing merchandise margins and stabilizing earnings, further opportunity for improvement lies ahead of us.”

Mr. Prange concluded, “Month-to-date September same-store sales are flat and, with our leaner inventory position, we expect September merchandise margins will improve over last year levels.”

Same-store sales for the month ending September 24, 2005 will be reported on September 29, 2005.

Second Half Outlook

The Company currently expects earnings per diluted share for the second half of its fiscal year to range from $0.37 to $0.42. When combined with the $0.41 per diluted share earned in the first six months of the year, the Company anticipates full year earnings per diluted share will range from $0.78 to $0.83 compared to $0.73 per diluted share in the prior fiscal year.

The Company will discuss its second quarter results in a conference call scheduled for today, September 20, 2005, 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.  The Company currently operates 679 women’s specialty stores in 45 states under the names: Christopher & Banks, C.J. Banks and Acorn. The company currently has 489 Christopher & Banks stores, 169 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

2

CHRISTOPHER & BANKS CORPORATION

UNAUDITED COMPARATIVE INCOME STATEMENT

FOR THE THREE AND SIX MONTHS ENDED

AUGUST 27, 2005 AND AUGUST 28, 2004

(in thousands, except per share data)

	Three Months Ended				Six Months Ended
	August 27, 2005		August 28, 2004		August 27, 2005		August 28, 2004
			(Restated)				(Restated)
Net sales	$	110,806	$	96,373	$	233,484	$	198,998
Costs and expenses:
Merchandise, buying and occupancy	66,782		59,359		138,854		117,508
Selling, general and administrative	30,666		24,431		61,958		49,084
Depreciation and amortization	4,545		3,885		9,022		7,621
Total costs and expenses	101,993		87,675		209,834		174,213
Operating income	8,813		8,698		23,650		24,785
Interest income	460		242		787		500
Income before income taxes	9,273		8,940		24,437		25,285
Income tax provision	3,579		3,451		9,433		9,760
Net income	$	5,694	$	5,489	$	15,004	$	15,525
Basic earnings per share:
Net income	$	0.16	$	0.15	$	0.42	$	0.42
Basic shares outstanding	35,840		36,393		35,793		36,949
Diluted earnings per share:
Net income	$	0.16	$	0.15	$	0.41	$	0.41
Diluted shares outstanding	36,212		36,900		36,158		37,518
Dividends per share	$	0.04	$	0.04	$	0.08	$	0.08

~ more ~

3

CHRISTOPHER & BANKS CORPORATION

UNAUDITED COMPARATIVE BALANCE SHEET

(in thousands)

	August 27, 2005			August 28, 2004
				(Restated)
ASSETS
Current assets:
Cash and cash equivalents	$	35,857		$	9,138
Short-term investments	26,876			41,917
Merchandise inventory	40,552			41,596
Other current assets	12,065			13,571
Total current assets	115,350			106,222
Property, equipment and improvements, net	115,156			106,362
Other assets:
Goodwill	3,587			—
Other	957			149
Total other assets	4,544			149
Total assets	$	235,050		$	212,733
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	8,728		$	11,279
Accrued liabilities	15,875			12,300
Total current liabilities	24,603			23,579
Other liabilities:
Deferred lease incentives	19,864			18,863
Other	13,380			12,056
Total other liabilities	33,244			30,919
Stockholders’ equity:
Common stock	427			423
Additional paid-in capital	62,886			59,785
Retained earnings	174,466			153,685
Common stock held in treasury	(60,576		)	(55,658		)
Total stockholders’ equity	177,203			158,235
Total liabilities and stockholders’ equity	$	235,050		$	212,733

# #  #

4