Christopher & Banks Corp · OTC:CBKCQ
Christopher & Banks — Investor Presentation (September 2012)
19 slides from Christopher & Banks's investor presentation, Sep 12, 2012
Slide 1: Charting Our Path to Profitability
Charting Our Path to Profitability September 12, 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 from such forward-looking statements. These forward-looking
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 Two primary retail concepts: Christopher & Banks – missy & petites CJ Banks– size 14 & more E-commerce sites for each brand Company Overview
Slide 4: Company Overview: Christopher & Banks and CJ Banks
Christopher & Banks Missy & petite, offering sizes 4-16 Target baby boomer with ideal age of 45-55 and average household income over $75,000 390 stores with an average of 3,300 square feet per store CJ Banks Plus sizes 14W-28W with additional extended sizes online Target baby boomer with ideal age o
Slide 5: Investment Highlights
Strong brand loyalty among baby boomer demographic Multi-channel strategy with small market focus Strategic initiatives to reinvigorate sales taking hold New merchandising and marketing strategies with attractive price/value proposition Enhanced in-store merchandise presentation and emphasis on sell
Slide 6: Made Significant Progress in LTM
6 New senior management team and re-energized organization Executed real estate restructuring program and restructured workforce Instituted merchandising and marketing strategies to drive sales and margin improvement and improve inventory flow Re-energized staff with focus on testing and evaluating
Slide 7: New Senior Management Team
7 New senior management team and re-energized organization Joel N. Waller, a 30 year retail executive veteran, named CEO in February: Consultant to multiple retailers including AM Retail Group, Inc. and Wilsons Leather Chairman and CEO of Wet Seal, Inc. Chairman and CEO of Wilsons Leather Peter Mich
Slide 8: Refined Real Estate Portfolio and Restructured Workforce
8 Completed closure of 103 underperforming stores by July 28, 2012 Expect store closures and rent reductions to yield approximately $12 to $14 million in annual occupancy cost savings Implemented workforce reductions leading to more than $5.0 million in cost savings beginning this fiscal year Refine
Slide 9: Focused Merchandising and Marketing Strategies
9 Rebalancing assortment to offer the right mix of merchandise Reducing the number of styles and SKUs by 25% for fall 2012 Increasing focus on key categories Rebalancing mix of good/better/best with greater emphasis on good and better Offering an improved price/value proposition for fall Providing m
Slide 10: Focused Merchandising and Marketing Strategies (cont'd)
10 28-store test program launched July 1 provides platform to test strategies before expanding to additional stores Positive results seen thus far: July comparable store sales higher by 1,100+ bps; conversion higher by 650 bps August comparable store sales higher by 1,900 bps; conversion higher by 4
Slide 11: Focused Merchandising and Marketing Strategies (cont'd)
11 Implementing marketing program to drive traffic and conversion Creating more targeted, unique pre-planned promotions Fewer store-wide events Focused on reactivating lapsed customers Successfully launched private label credit card program in April 2012 Represents 13% of overall sales since launch
Slide 12: Focused Merchandising and Marketing Strategies (cont'd)
12 Expand Customer Relationship Management Program (CRM) 2.9 million members in our Friendship Program, with 2.1 million active members generating 80% of our sales Friendship Program customers shop more frequently: 3.7 times per year vs. 1.5 They spend more annually: $165 vs. $48 Improved signage to
Slide 13: Stabilized Balance Sheet and Enhanced Cash Flow
13 Stabilized Balance Sheet and Enhanced Cash Flow Announced new senior $50 million credit facility 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 equity Provide fin
Slide 14: Driving Shareholder Value
14 Turnaround strategy expected to yield: Sales productivity improvement Merchandise margin expansion Increased leverage on occupancy costs Leverage on SG&A Increased inventory efficiencies Improved free cash flow Driving Shareholder Value
Slide 15: Financial Highlights
christopher& banks lie Financial Highlights
Slide 16: Improved Financial Performance
16 Total comparable sales for second quarter up 5.5% Compared to a 14.6% decrease in the first quarter and a 7.0% decrease in last year’s second quarter Despite operating on average 113 (14%) fewer stores, sales for the quarter were only slightly lower than last year’s sales Gross margin in the seco
Slide 17: Second Quarter Income Statement Summary
17 Thirteen Weeks Ended July 28, 2012 Thirteen Weeks Ended July 30, 2011 Net Sales $103.4 $105.6 Merchandise, Buying & Occupancy 74.8 71.4 Selling, General & Administrative 30.6 34.1 Depreciation & Amortization 4.9 6.4 Operating Income (Loss) (2.2) (6.3) Net Income (Loss)* ($2.2) ($6.2) Adjusted Net
Slide 18: Balance Sheet Summary
18 July 28, 2012 January 28, 2012 Cash and Investments $40.5 $61.7 Merchandise Inventories 38.7 39.5 Property and Equipment, net 48.9 56.4 Total Assets $137.1 $166.0 Long -Term Debt — — Stockholders’ Equity $74.6 $89.4 Balance Sheet Summary
Slide 19: Fiscal 2012 Outlook
19 Expect positive year over year comps for 3Q and 4Q Expect 200 to 300 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 Merchandise margin expected to rem
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