Business
Christopher & Banks Corporation Reports Second Quarter Fiscal 2019 Financial Results
Christopher & Banks Corporation Reports Second Quarter Fiscal 2019 Financial Results.
About this update from Christopher & Banks Corp
[{"type":"text","content":"\nChristopher & Banks Corporation (OTC:CBKC), a specialty women’s apparel retailer, today reported results for the second quarter ended August 3, 2019.\n\n\nKeri Jones, President and Chief Executive Officer, commented, “Our second quarter results reflect meaningful progress on our initiatives to drive improved bottom line performance. The $1.4 million year over year improvement in Adjusted EBITDA* reflects a combination of a higher gross margin rate and lower SG&A as we continue to drive merchandise margin expansion, advance our real estate optimization strategies and benefit from our cost reduction initiatives. While our top line initiatives have been slower to take hold, we are very pleased to see positive comparable sales for the third quarter-to-date in both brick and mortar stores, and in our eCommerce channel. We are confident that we are on the right path to delivering improved sales performance based on the continuation of higher conversion rates, increased full-price sell-through and the growth we experienced in new and reactivated customers during the second quarter. Based on current trends, we are confident that we have more than sufficient cash resources and liquidity to implement our strategies and effectuate the turnaround of the business.”\n\n\nResults for the Second Quarter Ended August 3, 2019\n\n\n\nNet sales totaled $83.4 million, a decrease of 4.5%, while operating on average 456 stores. This compares to $87.4 million in net sales for the second quarter of Fiscal 2018, while operating on average 462 stores.\n\n\nComparable sales declined 4.1% following a 0.8% increase in the same period last year.\n\n\nGross margin rate was 29.3%, as compared to 28.5% in last year's second quarter. The 88 basis point increase was due primarily to a 148 basis point increase in merchandise margin, partially offset by higher shipping costs related to our ship from store initiative.\n\n\nSelling, general & administrative expenses (“SG&A”) decreased by 6.5% to $27.8 million. The decrease was primarily due to lower expenses for compensation, medical benefits, professional services, and eCommerce, and the sale of a claim regarding credit card interchange fees. As a percent of net sales, SG&A decreased approximately 69 basis points to 33.3%.\n\n\nNet loss totaled $5.9 million, or ($0....