Christopher & Banks Corp · OTC:CBKCQ
Christopher & Banks — Investor Presentation (December 2012)
18 slides from Christopher & Banks's investor presentation, Dec 11, 2012
Slide 1: Charting Our Path to Profitability
Charting Our Path to Profitability December 11, 2012
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: Company Overview
3 An established brand targeting the baby boomer market with fashionable assortments that meet our customers’ needs for style, versatility and value 637 stores in two primary brand concepts: 386 Christopher & Banks stores – missy & petites 171 CJ Banks stores– size 14 & more We operate an additional
Slide 4: Company Overview: Christopher & Banks and CJ Banks
Christopher & Banks Missy & petite, offering sizes 4-16 Target baby boomers with ideal age of 45-55 and average household income over $75,000 386 stores with an average of 3,300 square feet per store CJ Banks Plus sizes 14W-28W with additional extended sizes online Target baby boomers with ideal age
Slide 5: New Senior Management
5 New senior management team and re-energized organization LuAnn Via, President and CEO, joined November 26th; a 30+ year retail executive veteran: President and CEO of Payless ShoeSource, Inc. Group Divisional President of Lane Bryant and Cacique President of Catherines Stores, Inc. Vice President,
Slide 6: Made Significant Progress in LTM
6 Completed real estate and workforce restructuring Instituted merchandising and marketing strategies focused on sales and profitability improvement Improved inventory flow and instituted disciplined markdown strategy Re-energized staff with focus on testing and evaluating strategies, eliminating un
Slide 7: Restructuring Real Estate and Workforce
7 Closed 103 underperforming stores as part of restructuring plan Closed an additional 43 stores in the ordinary course through the third quarter 28 additional store closures planned between now and the end of the fiscal year Store closures and rent reductions expected to yield approximately $12 to
Slide 8: Focused Merchandising and Marketing Strategies
8 Rebalanced assortment to offer the right mix of merchandise Reduced the number of styles and SKUs by 21% for fall 2012 as compared to the prior year Increased focus on key categories Rebalanced mix of good/better/best with greater emphasis on good and better Offered an improved price/value proposi
Slide 9: Focused Merchandising and Marketing Strategies (cont'd)
9 Expanded Customer Relationship Management Program (CRM) Continued focus on Friendship Loyalty Program at 3.3 million total with 2.2 million active customers generating 84% of our sales - Friendship Reward Program customers shop more frequently; 2.6 times more than non-members spending $165 annuall
Slide 10: Focused Merchandising and Marketing Strategies (cont'd)
10 Continued to develop an enhanced promotional strategy Increased pre-planned category promotions and reduced store-wide events Refined store signage to drive traffic and provide clarity of offer Supplemented in-store offers with effective bounce-backs for repeat visits Grew private label credit ca
Slide 11: Pilot Store Test Program Focused on Retail Operations
11 28-store test program launched July 1 provides platform to test strategies before expanding to additional stores Positive results seen thus far: Third quarter comparable store sales of 38% versus 13.7% overall Third quarter conversion higher by 400 bps Recent test phase includes: Table program wi
Slide 12: Investment Highlights
12 Strong brand loyalty among baby boomer demographic Multi-channel strategy with small market focus Strategic initiatives driving improved sales and merchandise margin performance Significant operating margin expansion opportunity Enhanced balance sheet with improved liquidity and flexibility Stren
Slide 13: Financial Highlights
christopher& banks L Financial Highlights
Slide 14: Improved Financial Performance
14 Total comparable sales for third quarter up 13.7% Compared to a 5.5% increase in the second quarter and a 7.4% increase in last year’s third quarter Despite operating an average of 129 (17%) fewer stores, sales for the quarter grew 2.4% as compared to the same period last year Gross margin in the
Slide 15: Third Quarter Income Statement Summary
15 Thirteen Weeks Ended October 27, 2012 Thirteen Weeks Ended October 29, 2011 Net Sales $117.3 $114.6 Merchandise, Buying & Occupancy 76.0 85.5 Selling, General & Administrative 32.9 37.3 Depreciation & Amortization 4.4 5.8 Operating Income (Loss) 3.6 (14.0) Net Income (Loss)* $3.6 ($13.7) Adjusted
Slide 16: Balance Sheet Summary
16 October 27, 2012 January 28, 2012 Cash and Investments $33.2 $61.7 Merchandise Inventories 58.2 39.5 Property and Equipment, net 45.0 56.4 Total Assets $145.0 $166.0 Long -Term Debt — — Stockholders’ Equity $78.8 $89.4 Balance Sheet Summary
Slide 17: Stabilized Balance Sheet and Improved Cash Flow
17 Stabilized Balance Sheet and Improved Cash Flow Executed new senior $50 million credit facility in the second quarter Enhanced liquidity Greater capital flexibility with fewer covenants Plan to utilize for letters of credit for merchandise purchases Filed shelf registration for up to $75 million
Slide 18: Fiscal 2012 Outlook
18 Expect high-single to low-double digit increase in comparable store sales for 4Q Expect 400 to 500 basis points of positive leverage of occupancy expense for the 12 months ended February 2, 2013 when compared to the comparable prior year period, based on store closings and rent restructuring Merc
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