FINANCE

Christopher & Banks names chief stores officer; to close 30 to 40 stores

BY Marianne Wilson

Christopher & Banks on Tuesday reported disappointing third quarter amid supply chain problems, and updated its store portfolio analysis.

The women’s apparel retailer also announced it has appointed Carmen Wamre as senior VP, chief stores officer, effective Dec. 10. She brings with her more than 28 years of retail experience, including 19 years as zone VP, Express, where she oversaw operations for 300 plus retail stores.

On a quarterly call with analysts, Christopher & Banks CFO Richard Bundy said the company has nearly completely a deep dive into its real estate portfolio. Based on its findings, the retailer is “rationalizing” its store base and plan to close 30 to 40 stores over the next two and a half years. The closings will start at the end of 2019 as leases expire. (As of Dec. 4, the company operates 461 stores in 45 states.)

Christopher & Banks reported a loss of $8.817 million, or 24 cents per share in the quarter ended Nov. 3, compared to a loss of $1.622, or 5 cents per share, in the year-ago period.   Losses, adjusted for asset impairment costs and severance costs, were 15 cents per share.

Net sales fell 7.3% to $91.3 million in the quarter ended Nov.3, while operating on average 461 stores. This compares to $98.5 million in net sales in the year-ago period, while operating on average 473 stores.

Same-store sales decreased 7.5%. eCommerce sales increased 10.7%.

The retailer said its third quarter results were adversely impacted by the combination of shipment delays and lower planned levels of inventory, which resulted in an average of 17% less inventory on hand than in last year’s third quarter.

“In addition, moving through excess spring/summer merchandise inventory was more challenging than the prior year and created meaningful pressure on our gross margin,” said Keri Jones, president and CEO. “Notably, as newer merchandise arrived in stores, we have been encouraged by the response as these deliveries have been resonating with our customers.”

Jones sounded more positive notes in her statement, saying quarter-to-date, the company is seeing positive comparable sales coupled with gross margin expansion.

“Importantly, the abundance of work we have done over the last eight months, focused on strengthening our merchandising strategy, developing a more impactful marketing approach and enhancing our omni-channel capabilities, are beginning to bear fruit,” she said. “At the same time, we continue to make progress in advancing process improvement initiatives and reducing costs.”

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