Christopher & Banks Corp · OTC:CBKCQ
Christopher & Banks — Investor Presentation (June 2013)
21 slides from Christopher & Banks's investor presentation, Jun 18, 2013
Slide 1: Charting Our Path to Profitability
Charting Our Path to Profitability June 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 601 stores in two primary brand concepts: 376 Christopher & Banks stores – missy & petite - with an average of 3,300 square feet per store 154
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 Lisa Klein - VP, Information Technology and P&A Ann McDermott – GMM, Christopher & Banks Tricia Perket – 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
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 During 1Q13, we experienced +1% customer growth of our 12 month file on a reduced store base. The first p
Slide 12: Targeted Messaging and Marketing (cont'd)
12 Increased effective direct marketing efforts Coming off of a successful 4Q12 where we generated twice the incremental sales of the same numbers of mailings during the prior year 1Q13 continued to see extremely profitable and effective direct mail campaigns particularly in March with the laun
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: First quarter comparable store sales 1500 bps higher than balance of chain Current test initiatives include: Implementing grassroots market
Slide 15: Real Estate Strategy
15 Plan to open 5 outlet stores and two MPW stores 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 MPW 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 Lift. You wear it well Financial Highlights
Slide 18: Improved Financial Performance
18 Total comparable sales for first quarter up 23.4% Compared to a 18.5% increase in the fourth quarter and a 14.6% decrease in last year’s first quarter Improved conversion rates and higher units per transactions led to 11.4% increase in average transactions per store Despite operating an a
Slide 19: First Quarter Income Statement Summary
19 Thirteen Weeks Ended May 4, 2013 Thirteen Weeks Ended April 28, 2012 Net Sales $108.5 $93.6 Gross Profit $37.1 $21.7 Gross Margin 34.2% 23.1% Selling, General & Administrative $32.7 $30.8 SG&A as % of sales 30.1% 32.9% Depreciation & Amortization $3.4 $5.0 Operating Income (Loss) $0.8 ($13.4) Net
Slide 20: Balance Sheet Summary
20 May 4, 2013 April 28, 2012 Cash and Investments $40.5 $33.7 Merchandise Inventories 43.0 44.5 Property and Equipment, net 38.8 52.9 Total Assets $136.3 $140.3 Long -Term Debt — — Stockholders’ Equity $76.7 $76.4 Balance Sheet Summary
Slide 21: Fiscal 2013 Outlook
21 For the second quarter: Expect comparable store sales to increase in the high single digits Expect 450 to 550 basis points of gross margin improvement, split between improved merchandise margins, three-fourths, and positive leverage on occupancy expense, one-fourth. Expect SG&A dollars to
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