Christopher & Banks Corp · OTC:CBKCQ
Christopher & Banks — Investor Presentation (December 2013)
21 slides from Christopher & Banks's investor presentation, Dec 9, 2013
Slide 1: Charting Our Path to Profitability
Charting Our Path to Profitability December, 2013
Slide 2: Forward-looking statements
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
An established brand targeting the baby boomer market with fashionable assortments that meet our customers’ needs for style, versatility and value 593 stores in two primary brand concepts: 363 Christopher & Banks stores – missy & petites - with an average of 3,300 square feet per store 150 C
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 Two-thirds married Purchases 3.2 times annually Self-reports that she visits more frequently Spends $139 annually On average, $43 per p
Slide 6: Experienced Management Team
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 Perk
Slide 7: Corporate Strategic Initiatives
Corporate Strategic Initiatives Elements of Strategic Initiatives Focused Assortments and Improved Price/Value Equation Targeted Messaging and Marketing Enhanced Store Experience Merchandising Operational Excellence 7
Slide 8: Focused Merchandise Assortments
Consistently deliver a balanced, compelling and versatile fashion assortment Continue to maximize sales and margin with core basic programs Introduce increased fit solutions and easy care fabrics Expand assortment to include weekend wear, soft knit dressing, and slimming solutions Increase
Slide 9: Improved Price/Value Equation
Offer a price/value proposition that resonates with customers Provide attractive opening price points Develop planned promotional buys to maximize margin Drive key items at compelling price points Continue to offer a well-balanced good / better / best mix of product offerings Consistentl
Slide 10: Targeted Messaging and Marketing
Targeted Messaging and Marketing • Leverage Customer Relationship Management (CRM) Programs Continue focus on Friendship Loyalty Program at 3.9 million in total and 2.3 million active customers generating 96% of our 12-month sales • Increased direct marketing efforts Q3 was the largest send ever
Slide 11: Targeted Messaging and Marketing (cont'd)
Targeted Messaging and Marketing (cont’d) • Continue to grow Private Label Credit Card Program (launched in April 2012) Achieved our original full year goal of 500k, in early November. Cardholders represent 18% of active customers and 23% of overall YTD sales; Q3 represented 26% of sales. Card
Slide 12: Enhanced Store Experience
Enhanced Store Experience Refresh “Selling with Care” program Introduce additional selling techniques and learning tools like video Re-enforce clientelling as key to selling culture Increase selling hours at stores where proven effective at increasing sales productivity Upgrade Talent Ex
Slide 13: Real Estate Strategy
Opening 6 outlet stores and 2 MPW stores in fiscal 2013, and converting a total of 40 stores to 20 MPW stores 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
Slide 14: Investment Highlights
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 Investment Highlights 14 opportunity Enhanced balance sheet with improved li
Slide 15: Financial Highlights
christopher & banks L You w Financial Highlights
Slide 16: Improved Financial Performance
Total comparable sales for third quarter up 4.9% On top of an 13.6% increase in last year’s third quarter and compared to a 23.4% increase in the first quarter and a 7.7% in second quarter of 2013 Sixth consecutive quarter of comparable store sales increases Improved conversion rates, higher
Slide 17: Third Quarter Income Statement Summary
Thirteen Weeks Ended November 2, 2013* Thirteen Weeks Ended October 27, 2012* Net Sales $118.1 $117.3 Gross Profit 45.0 41.3 Gross Margin 38.1% 35.2% Selling, General & Administrative 33.2 32.9 SG&A as % of sales 28.1% 28.1% Third Quarter Income Statement Summary Depreciation & Amortization 3.1 4.4
Slide 18: Three Quarters Fiscal 2013 Income Statement Summary
39 Weeks Ended November 2, 2013** 39 Weeks Ended October 27, 2012** Net Sales $330.8 $314.3 Gross Profit 116.9 91.7 Gross Margin 35.3% 29.2% Selling, General & Administrative 97.5 94.4 SG&A as % of sales 29.5% 30.0% Three Quarters Fiscal 2013 Income Statement Summary Depreciation & Amortization 9.9
Slide 19: 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 Balance Sheet and Cash Flow Summary Long -Term Debt — — Stockholders’ Equity $86.4 $78.8 No outstanding
Slide 20: Fiscal 2013 Fourth Quarter and Full Year Outlook
For fourth quarter 2013, we expect: Comparable store sales to increase in the low-single digit percent range Approximately 100 to 150 basis points of gross margin improvement SG&A dollars to be between 30.0% and 30.5% of net sales, due to increased investments in marketing and benefit costs
Slide 21: Long-Range Targets
Over the next three fiscal years, we expect to deliver: Mid-single digit annual comparable store sales growth An additional 300 to 400 basis points of gross margin expansion SG&A leverage in each year Operating income as a percent of net sales in the high single digits by the end of the th
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