Christopher & Banks Corp · OTC:CBKCQ
Christopher & Banks — Investor Presentation (April 2013)
23 slides from Christopher & Banks's investor presentation, Apr 8, 2013
Slide 1: Charting Our Path to Profitability
Charting Our Path to Profitability April, 2013
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: Our Vision & Mission
Our Vision & Mission Vision: To become her trusted brand by delivering style and value every day. Mission: To provide women of all sizes, apparel and accessories with style and versatility that reflects who she is; lasting quality and affordable value she expects; delivered with the personalized att
Slide 4: Company Overview
4 An established brand targeting the baby boomer market with fashionable assortments that meet our customers’ needs for style, versatility and value 605 stores in two primary brand concepts: 381 Christopher & Banks stores – missy & petites - with an average of 3,300 square feet per store 158
Slide 5: Our Core Customer
Our Core Customer Target baby boomers - 45-60 years Avg. household income $70k-$75k More than 50% higher than US avg. 70% work outside of the home 2/3 married Purchases 3.2 times annually Self-reports that she visits more frequently Spends $139 annually On average, $43 per purchase
Slide 6: New Senior Management
6 New senior management team and re-energized organization LuAnn Via, President and CEO, joined November 26, 2012; 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.
Slide 7: Introduction: Senior Leadership Team
Introduction: Senior Leadership Team Michelle Rice – SVP, Store Operations Monica Dahl - SVP, Marketing Luke Komarek - SVP, General Counsel Cindy Stemper – SVP, Human Resources Mike Lyftogt – Chief Accounting Officer Lisa Klein - VP, Information Technology and P&A Ann McDermott – GMM,
Slide 8: Corporate Strategic Initiatives
Corporate Strategic Initiatives 8 Elements of Strategic Initiatives Focused assortments and merchandising Improved price/value equation Targeted messaging and marketing Enhanced store experience Operational Excellence
Slide 9: Focused Assortments and Merchandising
9 Balanced assortments to offer the right mix of merchandise Continued reduction of the number of styles and SKUs while increasing depth in a greater number of key styles Rebalanced mix of good/better/best with greater emphasis on good and better Delivering fashionable, age appropriate cloth
Slide 10: Improved Price/Value Equation
10 Offering an improved price/value proposition that has resonated well with customers Providing more attractive opening price points Simplified pricing structure and reduced ticket prices on average by 20% Expanding top 10 key programs at key price points Driving higher full price selling
Slide 11: Targeted Messaging and Marketing Strategies
11 Expanding 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 Club Card programs, Smarty Pants, Sweater Club, and Bottom Line (shorts, skorts, skirts, capris, pants)
Slide 12: Targeted Messaging and Marketing (cont’d)
12 Enhanced promotional strategy Increased targeted, unique 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 Private label credit card
Slide 13: Enhanced Store Experience
Enhanced Store Experience Refreshing “Selling with Care” program Introducing additional selling techniques Supporting with additional learning tools such as videos Adding selling hours to increase service levels Re-enforcing clientelling as key to selling culture Talent Expanded traini
Slide 14: Pilot Store Test Program Focused on Retail Operations
14 Test program provides platform to test strategies in approximately 100 stores before expanding to additional stores Positive results seen thus far: Fourth quarter comparable store sales of 38% versus 18.5% overall Current test initiatives include: Implementing grassroots marketing campa
Slide 15: Real Estate Strategy
15 Plan to open 5 outlet stores and one dual store in fiscal 2013 Longer term, openings are expected to be primarily outlet stores Evaluating opportunities to convert Christopher & Banks and CJ Banks single brand stores into dual stores Better serve our customer with full complement of missy
Slide 16: Investment Highlights
16 Unique customer niche largely ignored by others 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 flexibilit
Slide 17: Financial Highlights
christopher& banks Life. You wear it well: Financial Highlights
Slide 18: Improved Financial Performance
18 Total comparable sales for fourth quarter up 18.5% Compared to a 13.7% increase in the third quarter and an 18.6% decrease in last year’s fourth quarter Improved conversion rates and higher units per transactions led to 7.1% increase in average transactions per store Despite operating an
Slide 19: Fourth Quarter Income Statement Summary
19 Fourteen Weeks Ended February 2, 2013 Thirteen Weeks Ended January 28, 2012 Net Sales $116.0 $105.6 Gross Profit 35.0 7.5 Gross Margin 30.2% 7.1% Selling, General & Administrative 34.8 35.3 SG&A as % of sales 30.0% 33.7% Depreciation & Amortization 4.2 4.5 Operating Income (Loss) (4.0) (53.6) Net
Slide 20: Fiscal 2013 Income Statement Summary
20 53 - Weeks Ended February 2, 2013 52 - Weeks Ended January 28, 2012 Net Sales $430.3 $436.2 Gross Profit 126.6 102.9 Gross Margin 29.4% 23.6% Selling, General & Administrative 129.2 141.8 SG&A as % of sales 30.0% 32.5% Depreciation & Amortization 18.6 22.0 Operating Income (Loss) (16.0) (82.1) Ne
Slide 21: Balance Sheet Summary
21 February 2, 2013 January 28, 2012 Cash and Investments $40.7 $61.7 Merchandise Inventories 42.7 39.5 Property and Equipment, net 41.2 56.4 Total Assets $135.9 $166.0 Long -Term Debt — — Stockholders’ Equity $75.5 $89.4 Balance Sheet Summary
Slide 22: Stabilized Balance Sheet and Improved Cash Flow
22 Stabilized Balance Sheet and Improved Cash Flow Executed new senior $50 million credit facility in 2Q12 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 in e
Slide 23: Fiscal 2013 First Quarter Outlook
23 Expect comparable store sales to increase in the low twenty percent range Expect 800 to 900 basis points of gross margin improvement, split between improved merchandise margins and positive leverage on occupancy expense Expect SG&A dollars to grow at lower pace than sales, due to increased
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