Christopher & Banks Corp · OTC:CBKCQ
Christopher & Banks — Investor Presentation (January 2015)
28 slides from Christopher & Banks's investor presentation, Jan 9, 2015
Slide 1: Charting Our Path to Long-Term Growth and Profitability
Charting Our Path to Long-Term Growth and Profitability January 2015
Slide 2: Safe Harbor
Certain statements on the slides which follow may be forward-looking statements about Christopher & Banks Corporation (the “Company”). Such forward-looking statements involve risks and uncertainties which may cause actual results to differ. These forward-looking statements may be identified by such
Slide 3: About Us and Our Core Customer
Specialty women's apparel retailer catering to missy, petite, and women customers Currently operate approximately 540 stores in 43 states plus an eCommerce website Target women 45-60 years Avg. household income $70k-$75k 70% work outside of the home Two-thirds married Purchasing behavior Purchases 3
Slide 4: Our Vision & Mission
Our Vision & Mission Vision To be her trusted brand by delivering style and value every day Mission To provide our customer with: style and versatility that reflects who she is, lasting quality and affordable value that she expects, and personalized attention that she deserves 4
Slide 5: Investment Highlights
5 Uniquely positioned to address niche customers who are largely underserved including the growing petite and plus size customer segments Increasing sales per square foot driven by MPW migration and outlet store expansion Merchandising strategy and inventory discipline centered around driving higher
Slide 6: Experienced Executive Team
Name Title Year Joined CBK Experience LuAnn Via President and CEO 2012 30+ Peter Michielutti EVP, COO and CFO 2012 25+ Monica Dahl SVP, Marketing, Omni-Channel & PR 2004 20+ Lynn Derry SVP, General Merchandise Manager 2014 30+ Luke Komarek SVP, General Counsel 2007 25+ Michelle Rice SVP, Store Opera
Slide 7: Management Team Led Successful Turnaround
Management Team Led Successful Turnaround Sales per square foot rose from $150 to $190 – an improvement of 27% - driven by enhanced merchandising strategy and impactful targeted marketing programs(1) Gross margin went from 24.4% in fiscal 2011 to a projected 36.1% in fiscal 2014; this is attributabl
Slide 8: Store Base Migration
Store Base Migration * FY12R represents 48 weeks ended 1/28/12 ** FY14 counts are projected to year end as of January 8, 2015 815 806 775 686 608 560 518
Slide 9: Christopher & Banks and C.J. Banks store history
Christopher & Banks 2000 Braun’s changes name to Christopher & Banks 2009 Peak store count at 548 stores Projected (end of fiscal 2014 173 stores C.J. Banks 2000 First CJ Banks store opens – catering to plus size 2009 Peak store count at 267 stores Projected (end of fiscal 2014 85 stores 9
Slide 10: MPW Stores
2009 Dual Brand store opened in Moosic, PA 2013-2014 Tested current MPW format Projected (end of fiscal 2014) 216 stores Future Potential 100% of store base MPW Stores Designed to provide women of all sizes with apparel and accessories that reflect who she is, with value that she can appreciate in a
Slide 11: Outlet Stores
2010 Opened 1st stores - Kansas Legends and Albertville, MN Projected (end of fiscal 2014) 44 stores Future Potential 100 stores Outlet Stores Offer a full range of sizes including base store merchandise, exclusive made-for-outlet styles and clearance. 11
Slide 12: Consistent Execution of Core Strategies
Consistent Execution of Core Strategies Balanced Merchandise Assortments Maximizing Special Sizes Targeted Messaging and Marketing Compelling & Easy to Shop Store Experience Operational Excellence Strategic Initiatives in Place for Next Stage of Growth Omni-Channel Capabilities = Customer First 12 M
Slide 13: Balanced Merchandise Assortments
13 Capitalize on special size capabilities = women and petite Provide relevant, age-appropriate lifestyle options Wear to work balanced with casual options Easy, complete outfitting options Lifestyle collections Lounge & Sport Soft Dressing Collection Introduce Active Wear Fine-tune basics / fashion
Slide 14: Balanced Merchandise Assortments
Refine store assortments: By channel (MPW, Outlets, E-Commerce) Tailored and tiered by store Right-size breath vs. depth Expand Accessories categories Consistently deliver on quality Provide attractive opening price points in all categories Continue to offer a well-balanced good / better / best prod
Slide 15: Strategic Targeted Marketing Programs
15 Continue investment in direct marketing (direct mail & email) Refine digital marketing strategy Support new store formats with enhanced grand opening events Capitalize on markets where other specialty women’s retailers have exited Continue investments in social media and PR Leverage Customer Rela
Slide 16: CRM and PLCC Drive High ROI
16 Leverage Customer Relationship Management (CRM) Program Friendship Loyalty Program - 4.3 million members with 2.1 million Active generating 97% of LTM sales as of F3Q14 Increase analytics around customer segments Invest in qualitative & quantitative research Refine FR program in Fall 2015 Continu
Slide 17: Compelling and Easy-to-Shop Store Experience
Enhance Merchandise Presentation Reconfiguring product placement and store layout of missy, petite and women sizes Create destination shoppes by lifestyle and categories Improved visual presentation through updated fixturing and props Maintain Strong Personal Relationships with Our “Friends” Leverag
Slide 18: MPW Format Drives Real Estate Strategy
MPW stores are strategically merchandised to make our missy, women’s and petite customers feel like the stores were tailored for them MPW stores generate greater sales productivity and higher profitability than standalone CB and CJ stores with: Higher sales per square foot Higher gross margin Higher
Slide 19: MPW Types
MPW Types New: Open a MPW in a new market or an additional store in an existing market Collapse/Combine (C/C): Combine CB & CJ into 1 of the 2 existing spaces Collapse/Combine Relocation: Combine existing CB & CJ into a NEW store within the same center Add CJ Relocation: There is an existing CB in t
Slide 20: MPW Format Drives Real Estate Strategy - Prior Store Format
MPW Format Drives Real Estate Strategy - Prior Store Format 20
Slide 21: MPW Format Drives Real Estate Strategy - Current Store Format
21 MPW Format Drives Real Estate Strategy - Current Store Format
Slide 22: Evolving Omni-Channel Experience
Evolving Omni-Channel Experience “CUSTOMER FIRST” Move from selling via any channel (Multi-Channel) to providing a seamless, consistent and integrated experience across ALL customer touch points (Omni-Channel) store, web, social, mobile, direct mail, email and digital Improved integration of all bus
Slide 23: Financial Highlights
Financial Highlights christopher& banks | cj banks MISSY PETITE WOMEN
Slide 24: 3-Year Financial Highlights – First Quarters
3-Year Financial Highlights – First 3 Quarters 24 24 39 Weeks Ended 39 Weeks Ended 39 Weeks Ended November 1, 2014* November 2, 2013* October 27, 2012* Net Sales $320.6 $330.8 $314.3 Gross Margin 37.2% 35.3% 29.2% SG&A as % of sales 29.6% 29.5% 30.0% Operating Income (Loss) $15.4 $9.4 ($11.9) Net In
Slide 25: 3-Year Financial Highlights – Annual Results
3-Year Financial Highlights – Annual Results 25 25 52 Weeks Ended 53 Weeks Ended 52 Weeks Ended February 1, 2014** February 2, 2013** January 28, 2012** Net Sales $435.8 $430.3 $436.2 Gross Margin 34.7% 29.4% 23.6% SG&A as % of sales 29.6% 30.0% 32.5% Operating Income (Loss)* $8.9 ($16.0) ($82.1) Ne
Slide 26: Projected Total Stores and Comp Store Base
Projected Total Stores and Comp Store Base as of January 31, 2015 27 Type of Store Total # of Stores # of Comp Stores Percentage Christopher & Banks 173 173 100% CJ Banks 85 85 100% MPW 216 48 22% Outlet 44 31 70% Total 518 337 65%
Slide 27: Strategic Plan Remains Intact
Strategic Plan Remains Intact Committed to Delivering Improved Financial Results Sales growth slower than original 3-year growth plan • Continued mall traffic declines • Acceleration of C/C causes near-term reduction in total sales • MPW performance consistent with expectations • CJ+ stores gaining
Slide 28: [LOGO]
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