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

Exhibit 99.1

FOR:	Christopher & Banks Corporation
APPROVED BY:	Andrew Moller
	Executive Vice President and Chief
	Financial Officer
	(763) 551-5000
CONTACT:	Investor Relations:
	Joe Teklits/Bill Zima
	Integrated Corporate Relations
	(203) 682-8200

CHRISTOPHER & BANKS CORPORATION REPORTS

FISCAL THIRD QUARTER RESULTS

Minneapolis, MN, December 19, 2006 – Christopher & Banks Corporation (NYSE: CBK) today reported results for its third quarter and nine months ended November 25, 2006.

Net sales in the third quarter increased 7% to $139.3 million, from $130.5 million in the prior year period, while same-store sales declined 1%.  Net income for the third quarter increased to $9.2 million, or $0.24 per diluted share, compared with $8.7 million, or $0.24 per diluted share, in the year ago period.

For the nine months ended November 25, 2006, net sales increased 14% to $413.3 million from $363.9 million, while same-store sales rose 4%. Net income was $31.8 million, or $0.84 per diluted share, compared to $23.7 million, or $0.66 per diluted share, in the prior year period. As of November 25, 2006, the Company operated 778 stores compared with 707 stores as of November 26, 2005.

Joe Pennington, Chief Executive Officer of Christopher & Banks Corporation commented, “The customer response to our product assortment was not as favorable as expected during the third quarter.  Merchandise margins were very strong early in the quarter but came under pressure as sales softened in October and November. We are taking all of the necessary measures to ensure that our Holiday merchandise miscues are contained and do not impact our spring season business. We have learned some lessons from this experience, and I am confident that we will begin fiscal 2008 with a merchandise mix that will once again resonate with our customers.”

Mr. Pennington concluded, “Based on performance to date and our expectations for the balance of the month, we anticipate that December same-store sales will decline 6 to 7%. With thirty-one days between Thanksgiving and Christmas this year compared to thirty days last year, we believe our customer has delayed her purchases later into the Holiday shopping season.  While below our expectations, we are encouraged that weekly same-store sales results have improved as we have progressed through our fiscal month of December.”

Balance Sheet Highlights and Financial Outlook

The Company is in a strong financial position finishing the quarter with $113.2 million in cash and short-term investments.  At the end of the third quarter total inventory per store was approximately $71,200 this year compared to $60,700 last year.  While up from last year, total inventory per store still remains approximately 5% below the level the Company finished the third quarter two years ago when inventory per store was $74,600.

For the fourth quarter ending March 3, 2007, earnings are anticipated to be in the range of $0.13 to $0.14 per diluted share.  Fourth quarter guidance takes into account a $0.02 to $0.03 per diluted share impact of expensing stock-based compensation.  In last year’s fourth quarter, the Company earned $0.18 per diluted share.  Last year’s fourth quarter included a $0.02 per share charge related to remaining contractual obligations to the Company’s former Chairman and Chief Executive Officer.

The Company will discuss its third quarter results in a conference call scheduled for today, December 19, 2006, 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 23, 2006 will be reported on Thursday, December 28, 2006, before the market opens.

About Christopher & Banks

Christopher & Banks Corporation is a Minneapolis-based specialty retailer of women’s clothing. The Company currently operates 779 stores in 45 states under the names: Christopher & Banks, C.J. Banks and Acorn.  The Company currently has 524 Christopher & Banks stores, 218 C.J. Banks stores and 37 Acorn stores.

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This release contains forward-looking statements, including statements regarding the Company’s anticipated December same-store sales results of a 6 to 7 percent decline and the Company’s earnings guidance of $0.13 to $0.14 per diluted share for the fourth quarter of fiscal 2007. The achievement of such results is subject to certain risks and uncertainties and actual results may differ materially from those projected.  Such risk factors include, but are not limited to, adverse changes in economic, market and weather conditions, shifts in consumer tastes and spending habits that result in decreased sales, failure to realize expected economies gained through the use of private label and direct import merchandise, problems in managing our 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 Statements to Follow)

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CHRISTOPHER & BANKS CORPORATION

UNAUDITED COMPARATIVE INCOME STATEMENT

FOR THE QUARTERS AND NINE MONTHS ENDED

NOVEMBER 25, 2006 AND NOVEMBER 26, 2005

(in thousands, except per share data)

	Quarter Ended				Nine Months Ended
	November 25,		November 26,		November 25,		November 26,
	2006		2005		2006		2005
Net sales	$	139,265	$	130,453	$	413,349	$	363,937
Costs and expenses:
Merchandise, buying and occupancy	84,611		78,066		241,976		216,921
Selling, general and administrative	35,793		33,783		107,986		95,740
Depreciation and amortization	5,138		4,712		15,136		13,734
Total costs and expenses	125,542		116,561		365,098		326,395
Operating income	13,723		13,892		48,251		37,542
Interest income	1,353		449		3,640		1,236
Income before income taxes	15,076		14,341		51,891		38,778
Income tax provision	5,849		5,613		20,134		15,046
Net income	$	9,227	$	8,728	$	31,757	$	23,732
Basic earnings per share:
Net income	$	0.24	$	0.24	$	0.86	$	0.66
Basic shares outstanding	37,743		35,945		37,051		35,844
Diluted earnings per share:
Net income	$	0.24	$	0.24	$	0.84	$	0.66
Diluted shares outstanding	38,233		36,181		37,617		36,165
Dividends per share	$	0.06	$	0.04	$	0.14	$	0.12

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CHRISTOPHER & BANKS CORPORATION

UNAUDITED COMPARATIVE BALANCE SHEET

(in thousands)

	November 25,			February 25,			November 26,
	2006			2006			2005
ASSETS
Current assets:
Cash and cash equivalents	$	59,380		$	59,419		$	32,740
Short-term investments	53,800			32,966			36,830
Merchandise inventories	55,421			37,871			42,918
Other current assets	13,783			10,384			12,479
Total current assets	182,384			140,640			124,967
Property, equipment and improvements, net	128,176			118,342			117,482
Other assets:
Goodwill	3,587			3,587			3,587
Other	1,249			894			924
Total other assets	4,836			4,481			4,511
Total assets	$	315,396		$	263,463		$	246,960
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	7,058		$	9,853		$	8,311
Accrued liabilities	25,274			25,930			20,237
Total current liabilities	32,332			35,783			28,548
Other liabilities:
Deferred lease incentives	21,896			21,803			20,203
Other	10,582			13,084			12,638
Total other liabilities	32,478			34,887			32,841
Stockholders’ equity:
Common stock	450			430			428
Additional paid-in capital	105,561			65,941			63,961
Retained earnings	213,551			186,998			181,758
Common stock held in treasury	(68,976		)	(60,576		)	(60,576		)
Total stockholders’ equity	250,586			192,793			185,571
Total liabilities and stockholders’ equity	$	315,396		$	263,463		$	246,960

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