Christopher & Banks Corp · OTC:CBKCQ
Christopher & Banks — Investor Presentation (October 2013)
21 slides from Christopher & Banks's investor presentation, Oct 15, 2013
Slide 1: Charting Our Path to Profitability
Charting Our Path to Profitability October, 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 595 stores in two primary brand concepts: 365 Christopher & Banks stores – missy & petites - with an average of 3,300 square feet per store 152
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 Merchandising Improved Price/Value Equation Targeted Messaging and Marketing Enhanced Store Experience Operational Excellence 7
Slide 8: Focused Merchandise Assortments
8 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 Increase wear-to-work options including jackets, blouses, essential cardigans and year round p
Slide 9: Improved Price/Value Equation
9 Offer a price/value proposition that resonates with customers Provide attractive opening price points Develop planned promotional buys to maximize margin Expand penetration of top 10 key programs at key price points Continue to refine good / better / best mix of product offerings Consi
Slide 10: Targeted Messaging and Marketing
10 Leverage Customer Relationship Management (CRM) Programs Continue focus on Friendship Loyalty Program at 3.7 million in total and 2.2 million Active customers generating 96% of our 12- month sales Increase direct marketing efforts Two direct mail pieces in 2Q13 generated 140% more increme
Slide 11: Targeted Messaging and Marketing (cont'd)
11 Continue to grow Private Label Credit Card Program (launched in April 2012) At present, cardholders represent 15% of active customers and 21% of overall sales Average transaction size of cardholders is approximately 50% higher than non-card holders During Q2, cardholders spent 19% more th
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
13 Plan to open 6 outlet stores and 2 MPW stores in fiscal 2013, and convert a total of 24 stores to 12 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
Slide 14: Investment Highlights
14 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 15: Financial Highlights
christopher & banks £ You Financial Highlights
Slide 16: Improved Financial Performance
16 Total comparable sales for second quarter up 7.7% On top of an 8.9% increase in last year’s second quarter and compared to a 23.4% increase in the first quarter of 2013 Improved conversion rates, higher units per transactions, and an increase in the AUR led to a 7.0% increase in average dol
Slide 17: Second Quarter Income Statement Summary
Thirteen Weeks Ended August 3, 2013** Thirteen Weeks Ended July 28, 2012** Net Sales $104.2 $103.4 Gross Profit 34.9 28.7 Gross Margin 33.5% 27.7% Selling, General & Administrative 31.5 30.6 SG&A as % of sales 30.3% 29.6% Depreciation & Amortization 3.4 4.9 Operating Income (Loss) 0.0 (2.2) Net Inco
Slide 18: First Half Fiscal 2013 Income Statement Summary
26 Weeks Ended August 3, 2013** 26 Weeks Ended July 28, 2012** Net Sales $212.8 $197.1 Gross Profit 72.0 50.3 Gross Margin 33.8% 25.5% Selling, General & Administrative 64.2 61.5 SG&A as % of sales 30.2% 31.2% Depreciation & Amortization 6.8 9.9 Operating Income (Loss) 0.8 (15.7) Net Income (Loss)*
Slide 19: Balance Sheet and Cash Flow Summary
August 3, 2013 (In Millions) July 28, 2012 (In Millions) Cash and Investments $47.0 $40.5 Merchandise Inventories 40.0 38.7 Property and Equipment, net 37.7 48.9 Total Assets $138.4 $137.1 Long -Term Debt — — Stockholders’ Equity $77.1 $74.6 Balance Sheet and Cash Flow Summary No outstanding borro
Slide 20: Fiscal 2013 Third Quarter and Full Year Outlook
20 For third quarter 2013, we expect: Comparable store sales to increase in the mid-single digit percent range Approximately 100 to 150 basis points of gross margin improvement SG&A dollars to be between 29.0% and 29.5% of sales, due to increased investments in marketing and corporate staff
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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