Christopher & Banks Corp · OTC:CBKCQ
Christopher & Banks — ICR Presentation (January 2019)
23 slides from Christopher & Banks's conference presentation, Jan 14, 2019
Slide 1: Christopher & Banks Corporation ICR Presentation
Christopher & Banks Corporation ICR Presentation January 14, 2019 1
Slide 2: Disclosure or Safe Harbor Statement
Disclosure or Safe Harbor Statement 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 s
Slide 3: Investment Highlights
Investment Highlights • Unique brand positioning serving an attractive customer segment with opportunity to gain more loyal brand ambassadors • New and seasoned management team • Leveraging our investments to drive increased growth through integrated omni- channel initiatives • Significant operation
Slide 4: Company Snapshot
Company Snapshot • A heritage brand appealing to an attractive customer segment • A loyal customer base which we know well, capturing customer data for 90% of all transactions • A unique brand promise delivering on our customers’ need for comfort, quality, value and service • Continuing to grow omni
Slide 5: Company History
Company History 1956 1992 2000 2008 2009 2010 2012 – present 2018 First combined store Braun’s - Company Company Launched e- First Outlet Continuing to New CEO, format Company Goes changes name to commerce Store collapse & combine CFO & CMO with Public Christopher & business stores to right size Hir
Slide 6: Our Store Base
Our Store Base • Current store count of 461 stores • 381 Full-price stores • 80 outlets • 43% are in small & rural markets where we have high brand recognition and minimal competition • 77% of stores are in markets with populations <75,000 • 67% of stores in C&D centers • 65% of stores are in tradit
Slide 7: Growing Digital Presence
Growing Digital Presence • Digital sales nearly doubled in 5 years • 4th consecutive year of double digit online sales growth • 95% of online sales occur in markets where we have brick and mortar stores • 92% of our customers continue to shop in stores – 15% of our customers shop in store and online
Slide 8: Our Customer Demographics
Our Customer Demographics Enjoys What She Expects • Baby-Boomer • Family time • Flattering Features • Over 2/3 employed outside • Church/Community Events • Consistent Fits of home (professions • Exercising (low Intensity) • Good Quality include: education, • Shopping • Great Value healthcare, and •
Slide 9: Our Customer – Loyal Brand Ambassadors
Our Customer – Loyal Brand Ambassadors Very loyal customer base • 90% are members of our Friendship Reward program • 28% have PLCC & Drive 39% of tender share Purchases 3.6 times a year • Self-reports that she visits more frequently Spends $171 a year • $47 per purchase IN HER WORDS…… “How do you im
Slide 10: Winning Through Differentiation
Winning Through Differentiation Customer Likes Our Brand Role Customer Likes • Broad Selection • Service and Support • Pricing C&B offers a relevant • Curated for me & unique selection, Customer Dislikes for every size with Customer Dislikes • Confusing, little help exceptional service • Limited Cho
Slide 11: Challenges With Prior Strategy
Challenges With Prior Strategy • Significant changes made to the real estate portfolio which have not performed to expectations – Collapse and Combine strategy was rolled out too aggressively, with insufficient testing – Misguided outlet expansion resulted in opening locations which diluted operatin
Slide 12: Path Forward
Path Forward • New Operating Principles • Rebuilt Leadership Team • Strategic Priorities 12
Slide 13: Operating Principles
Operating Principles • Improve Customer Centricity – Continue to deepen our understanding of her and her changing behaviors – Consistently deliver what she expects • Commitment to Operational Excellence – Relentless operating discipline across functions – Right size cost structure • Enhance our Cult
Slide 14: New Management
New Management Keri Jones, CEO Richard Bundy, SVP, CFO Joined March 2018 Joined July 2018 30+ years of retail experience; 18 years of finance; 14 years retail experience; EVP, CMO Dicks Sporting Goods; 10 years with Chico’s FAS including VP Brand 27 years with Target in roles of EVP, Global Supply F
Slide 15: Strategic Initiatives
Strategic Initiatives • Enhance the customer experience • Improve marketing & promotional effectiveness • Leverage omni-channel capabilities • Build loyalty & grow our customer file • Optimize our real estate portfolio • Right-size our cost structure 15
Slide 16: Enhance the Customer Experience
Enhance the Customer Experience • Improve relevancy & appropriately balance fashion, updated basics and key items • Better manage inventory flow • Refine vendor structure; improve product lifecycle • Enhance visual merchandising • Strengthen store selling culture 16
Slide 17: Improve Marketing and Promotional Effectiveness
Improve Marketing and Promotional Effectiveness • Execute disciplined markdown management • Leverage improved analytics to inform promotions & targeted customer offers • Improve measurement of & increase return on marketing investment 17
Slide 18: Build Loyalty & Grow Customer File
Build Loyalty & Grow Customer File • Reallocate marketing spend to drive acquisition while capitalizing on market disruptions • Refresh Reward Loyalty Program & continue to leverage PLCC program to drive growth • Capitalize on our unique positioning & grass roots efforts to drive engagement 18
Slide 19: Leverage Omni-Channel Capabilities
Leverage Omni-Channel Capabilities • Launch flexible fulfillment capabilities to maximize sales, margin and profitability o Enabled Ship from Store (Nov 2018) o Increased from 67 to 170 stores in December o $2.7M of order demand fulfilled from stores in the month of December o Rollout Buy Online, Pi
Slide 20: Flexible Real Estate Portfolio
Flexible Real Estate Portfolio Store Count at Year End # Yrs to Lease Action Date 900 775 800 171 157 700 608 600 560 518 518 484 500 463 456 76 400 300 41 200 # of Stores with Lease Action Lease with Stores of # 16 100 0 Yrs < 1 1-2 2-3 3-5 > 5 2011 2012 2013 2014 2015 2016 2017 2018 % of Tot 41.1%
Slide 21: Right Size Cost Structure
Right Size Cost Structure • Holistic approach being taken to drive cost reductions – Hired 3rd party non-merchandise procurement specialists to analyze and negotiate cost reductions – Continue to aggressively negotiate rent reductions – Optimize our marketing spend – Review and reduce corporate over
Slide 22: 2019 Outlook
2019 Outlook For fiscal 2019 expect: • Net sales to increase 2% to 3% driven by – Expanded omnichannel capabilities – Enhancements to the overall product assortment – More impactful marketing promotions to drive customer file growth • Gross margin expansion of 300 to 350 basis points – Improved inve
Slide 23: In Closing
In Closing • Unique brand positioning serving an attractive customer segment with opportunity to gain more loyal brand ambassadors • New and seasoned management team • Leveraging our investments to drive increased growth through integrated omni-channel initiatives • Significant operational improveme
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