Christopher & Banks Lowers Q4 Outlook; Names Joel Waller Interim CEO

(RTTNews) - Christopher & Banks Corp. (CBK), a specialty women's apparel retailer, lowered its financial outlook for the fourth quarter as well as announced the election of Joel Waller as interim President and Chief Executive Officer following the departure of LuAnn Via, President & CEO.

Christopher & Banks now anticipates fourth-quarter net loss in a range of $16 million to $17 million, including transition costs associated with the change in management, and net sales between $85 million and $86 million.

Earlier, the company projected fourth-quarter net loss of $4.1 million to $5.9 million, or loss of $0.11 to $0.16 per share, and total net sales of between $93.0 million and $97.0 million.

The company attributed the revised outlook to several factors, including lower traffic, ongoing headwinds in women's apparel and weather. The most significant decline occurred during the two full weekends prior to Christmas where sales were negatively impacted by an estimated $4.5 million.

According to Christopher & Banks, the continued strong performance in the company's eCommerce business, which grew by 15 percent in fiscal December, was offset by lower-than-anticipated sales in its other channels, particularly outlets.

In addition, the company reported that LuAnn Via, President & CEO and a director of the company, will be departing effective today. Further, Lisa Wardell resigned as a member of the board of directors and Board Chair, effective January 10, 2017.

In connection with Via's departure as CEO, the company's board said that effective today, Joel Waller has been elected interim President & CEO and a member of the board. Waller successfully served in a similar capacity for the company several years ago.

The board intends immediately to commence a search for a permanent CEO and will be engaging a national search firm to assist it in that process.

The company also announced that Kent Kleeberger has been elected as Board Chair.