Christopher & Banks Corp · OTC:CBKCQ
Christopher & Banks — Investor Presentation (June 2015)
29 slides from Christopher & Banks's investor presentation, Jun 9, 2015
Slide 1: Charting Our Path to Long-Term Growth and Profitability
Charting Our Path to Long-Term Growth and Profitability June 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 515 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 a
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
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 as well as cost efficiencies driving higher operating margin Merchandising strat
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: Experienced Board of Directors
Name Position Year Joined Board Other Public Boards Mark A. Cohn President and Chief Executive Officer of Aspirity Energy 2006 1 Edwin J. Holman Former CEO of Macy’s Central, a Division of Macy’s, Inc 2015 1 Anne L. Jones CEO of Jones Consulting Group, Inc. 2000 -- David A. Levin President and CEO o
Slide 8: Experienced Board of Directors
Experienced Board of Directors Diverse mix of seasoned executives from various fields Retail Marketing Accounting Finance The Board is 45% female 50% of its independent members are based outside of Minnesota Three directors have been recognized by the National Associate of Corporate Directors (leadi
Slide 9: 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 36.2%(2) in fiscal 2014; this is attributable to impr
Slide 10: Store Base Migration
Store Base Migration * FY12 represents 48 weeks ended 1/28/12 ** FY15 counts are projected to year end 775 686 608 560 518 527 518
Slide 11: 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 2015) 61 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 2015) 53 stores 11
Slide 12: MPW Stores
2009 Dual Brand store opened in Moosic, PA 2013-2014 Tested current MPW format Projected (end of fiscal 2015) 335 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 13: Outlet Stores
2010 Opened 1st stores - Kansas Legends and Albertville, MN Projected (end of fiscal 2015) 78 stores Future Potential 100 stores Outlet Stores Offer a full range of sizes including base store merchandise, exclusive made-for-outlet styles and clearance. 13
Slide 14: 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 14 M
Slide 15: Balanced Merchandise Assortments
Balanced Merchandise Assortments Merchandising strategy designed to maximize sales and gross margin 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 Fine-tune bas
Slide 16: Balanced Merchandise Assortments
Refine store assortments: By channel (MPW, Outlets, E-Commerce) Tailored and tiered by store Right-size breath vs. depth Utilizing new analytical tools to adjust assortments by store Consistently deliver on quality Provide attractive opening price points in all categories Continue to offer a well-ba
Slide 17: Strategic Targeted Marketing Programs
Continue investment in direct marketing (direct mail & email) Increase investments in social media and PR Refine digital marketing strategy to include acquisition of new customers Support new store formats with enhanced grand opening events Capitalize on markets where other specialty women’s retaile
Slide 18: CRM and PLCC Drive High ROI
Leverage Customer Relationship Management (CRM) Program Enhanced CRM system capabilities Fall FY15 as part of omni-channel initiative Friendship Rewards Loyalty Program 4.4 million members with 2.1 million Active generating 97% of LTM sales as of Q1FY15 Refreshed program anticipated Fall FY15 – gear
Slide 19: 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 20: 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 21: 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 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 Quarter
3-Year Financial Highlights – First Quarter 24 13 Weeks Ended 13 Weeks Ended 13 Weeks Ended May 2, 2015* May 3, 2014* May 4, 2013* Net Sales $91.6 $103.4 $108.5 Gross Margin 35.2% 36.7% 34.2% SG&A as % of sales 34.9% 31.2% 30.1% Operating Income (Loss) ($2.5) $2.8 $0.8 Net Income (Loss) ($1.4) $2.6
Slide 25: 3-Year Financial Highlights – Annual Results
3-Year Financial Highlights – Annual Results 25 52 Weeks Ended 52 Weeks Ended 53 Weeks Ended January 31, 2015* February 1, 2014* February 2, 2013* Net Sales $418.6 $435.8 $430.3 Gross Margin** 35.3% 34.7% 29.4% SG&A as % of sales 30.2% 29.6% 30.0% Operating Income (Loss)*** $9.4 $8.9 ($16.0) Net Inc
Slide 26: Balance Sheet and Cash Flow Summary
(Unaudited) May 2, 2015 (In millions) January 31, 2015 (In millions) Cash and Investments $38.2 $55.3 Merchandise Inventories 50.8 45.3 Property and Equipment, net 51.3 45.1 Total Assets $195.5 $196.0 Long -Term Debt — — Stockholders’ Equity $135.0 $135.9 Balance Sheet and Cash Flow Summary No outst
Slide 27: Total Stores and Comp Store Base as of May 2, 2015
Total Stores and Comp Store Base as of May 2, 2015 27 Type of Store Total # of Stores # of Comp Stores Percentage Christopher & Banks 88 88 100% CJ Banks 75 75 100% MPW 304 64 21% Outlet 51 31 61% Total 518 258 50%
Slide 28: 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 traction
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