Christopher & Banks Corp · OTC:CBKCQ
Christopher & Banks — ICR XChange 2014
26 slides from Christopher & Banks's conference presentation, Jan 13, 2014
Slide 1: Charting Our Path to Growth and Long-Term Profitability
Charting Our Path to Growth and Long-Term Profitability January, 2014
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 be her trusted brand by delivering style and value every day. Mission: To provide women of all sizes with 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 45-60 age group with fashionable assortments that meet our customers’ needs for style, versatility and value 590 stores in two primary brand concepts: 360 Christopher & Banks stores – missy & petite – average size of 3,300 square feet 150 CJ Banks stores
Slide 5: Our Core Customer
Target women 45-60 years Avg. household income $70k-$75k More than 50% higher than US avg. 70% work outside of the home Two-thirds married Purchases 3.2 times annually Self-reports that she visits more frequently Spends $139 annually On average, $43 per purchase 5 Our Core Customer
Slide 6: Experienced Management Team
Name Title Year Joined CBK Years in Industry LuAnn Via President and CEO 2012 30+ Peter Michielutti SVP and CFO 2012 20+ Michelle Rice SVP, Store Operations 2008 20+ Monica Dahl SVP, Marketing 2004 20+ Ann McDermott VP, Divisional Merchandise Manager 2011 20+ Tricia Perket VP, Divisional Merchandise
Slide 7: Improved Financial Performance
7 Improved Financial Performance -14.0% 18.5% -2.0% -15.0% 23.4% -8.0% 8.9% 7.7% 0.0% 13.6% 4.9% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% F4 Q 2 0 1 1 F4 Q 2 0 1 2 F1 Q 2 0 1 1 F1 Q 2 0 1 2 F1 Q 2 0 1 3 F2 Q 2 0 1 1 F2 Q 2 0 1 2 F2 Q 2 0 1 3 F3 Q 2 0 1 1 F3 Q 2 0 1 2 F3 Q 2
Slide 8: Long-Range Financial Targets
Over the Next 3 Fiscal Years, Expect to Deliver Mid-Single- Digit Comp Growth 300-400 bps of Gross Margin Expansion SG&A Leverage 2% - 3% Annual Net Square Footage Growth High-Single-Digit Operating Margin by End of Fiscal 2016 8 Long-Range Financial Targets
Slide 9: Corporate Strategic Initiatives
Elements of Strategic Initiatives Focused Assortments and Merchandising Compelling Price/Value Equation Targeted Messaging and Marketing Engaged and Easy to Shop Store Experience Operational Excellence 9 Corporate Strategic Initiatives
Slide 10: Focused Merchandise Assortments
10 Consistently deliver a balanced, compelling and versatile fashion assortment Offer fashion-right, age-appropriate options Continue to maximize sales and margin with year round core basic programs and appropriate depth of key styles Increase wear-to-work options including jackets, blouses,
Slide 11: Focused Merchandise Assortments
Expand core programs of Everyday Denim and Layer Your Look knit tees Introduce new fit solutions and easy care fabrics Signature slimming pants Wrinkle-resistant shirts Introduce weekend wear Expand soft knit dressing 11 Focused Merchandise Assortments
Slide 12: Compelling Price/Value Equation
12 Offer a price/value proposition that resonates with customers Provide attractive opening price points in all categories Drive key sales and margin at compelling price points Plan promotional buys to maximize margin Continue to offer a well balanced good / better / best product mix Con
Slide 13: Targeted Messaging and Marketing
13 Leverage Customer Relationship Management (CRM) Programs Friendship Loyalty Program at 3.9 million in total and 2.3 million Active customers generating 95% of our 12-month sales Increase analytics around customer segments Expand Private Label Credit Card Program (launched in April 2012)
Slide 14: Targeted Messaging and Marketing
14 Invest in marketing programs that increase customer growth and loyalty while driving measurable returns Increase investment in direct mail Increase investments in social media and select PR Support new store formats with enhanced grand opening events Refine promotional strategy Target
Slide 15: Enhanced Ecommerce Experience
Establishing direct foundation that keeps up with the changing needs of our customer Ongoing enhancements and updates to improve her shopping experience Leverage growing mobile usage among our target customer Increase our use of digital media to extend the reach of our brands and acquire a n
Slide 16: Engaged and Easy-to-Shop In-Store Experience
Refreshed “Selling with Care” program Refining selling techniques through additional videos and tools Re-enforce clientelling as key to selling culture Increased selling hours at select stores Upgraded Talent Aligning store personnel capabilities with real estate strategy Enhanced on-b
Slide 17: Real Estate Strategy
17 Expect to open at least 20 stores during each of the next three fiscal years consisting of outlet and MPW stores Continue to evaluate opportunities to convert Christopher & Banks and CJ Banks single brand stores into MPW stores Better serve customer with full complement of missy, petite and
Slide 18: Map of Current Store Base
18 Map of Current Store Base Highly Midwest, Northeast concentrated store base with opportunity for geographic expansion
Slide 19: Investment Highlights
19 Unique customer niche largely underserved 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 flexib
Slide 20: Financial Highlights
christopher & banks i You Financial Highlights
Slide 21: Improved Financial Performance
Total comparable sales for the first 39 weeks up 11.3% Six consecutive quarters of comparable store sales increases Improved conversion rates, higher units per transactions, and an increase in the AUR led to an 11.3% increase in average dollar sale Despite operating an average of 8.9% fewer
Slide 22: 3-Year Financial Highlights
22 39 Weeks Ended 39 Weeks Ended 39 Weeks Ended November 2, 2013** October 27, 2012** October 29, 2011** Net Sales $330.8 $314.3 $330.5 Gross Margin 35.3% 29.2% 28.9% SG&A as % of sales 29.5% 30.0% 32.2% Operating Income (Loss) $9.4 ($11.9) ($28.5) Net Income (Loss)* $9.0 ($12.0) ($28.1) Adjusted Ne
Slide 23: EBITDA Performance Since Turnaround Began
23 (37,231) (39,254) (22,620) (2,531) 11,009 16,330 19,656 (50,000) (40,000) (30,000) (20,000) (10,000) - 10,000 20,000 30,000 Q1-FY12R Q2-FY12R Q3-FY12R Q4-FY12R Q1-FY13 Q2-FY13 Q3-FY13 EBITDA Trailing 4-Quarters (excluding Restructure) $,000 EBITDA Performance Since Turnaround Began Embarked on
Slide 24: Balance Sheet and Cash Flow Summary
November 2, 2013 (In Millions) October 27, 2012 (In Millions) Cash and Investments $47.1 $33.2 Merchandise Inventories 49.3 58.2 Property and Equipment, net 37.6 45.0 Total Assets $147.7 $145.0 Long -Term Debt — — Stockholders’ Equity $86.4 $78.8 Balance Sheet and Cash Flow Summary No outstanding
Slide 25: Q4 Guidance Update
Q4 Guidance Update For the fourth quarter of fiscal 2013 the Company now expects: Same-store sales to be flat or slightly up on a year-over-year basis, versus the previous outlook for a low-single digit increase. The lowered same-store sales guidance reflects the impact of store closures related
Slide 26: Christopher & Banks | CJ Banks
christopherx banks | cj banks Life. You wear it well: MISSY PETITE WOMEN 4-16 4P-16P 14W-24W