Christopher & Banks Projects Q4 Loss; Q3 Comps. Up 4.5% - Quick Facts

(RTTNews) - Christopher & Banks Corporation (CBK), a specialty women's apparel retailer, announced, for the fourth quarter of fiscal 2016, the company currently expects total net sales of between $93.0 million and $97.0 million, with a comparable sales increase of 1.0% to 5.0%. The company projects fourth-quarter net loss of $4.1 million to $5.9 million or a net loss of $0.11 to $0.16 per share. Adjusted EBITDA, a non-GAAP measure, is expected to be between approximately a negative $0.6 million and a negative $2.4 million.

LuAnn Via, CEO, said: "After significant investments in technology and stores the past several years, we are focusing on optimizing these investments in Fiscal 2017 and reducing capital outlays. We are also taking a close look at our costs and identifying opportunities for additional savings in a number of areas, including occupancy, and increased efficiencies in processes and contract negotiations. Our preliminary assessment suggests there is an opportunity for net savings in fiscal 2017 of approximately $5.0 million to $7.0 million, before giving effect to the costs the Company would incur in connection with potential growth in overall sales."

For the third-quarter net sales totaled $106.7 million, an increase of 2.9%, while operating on average 506 stores, compared to $103.6 million in net sales for the third quarter of fiscal 2015, while operating on average 533 stores. Comparable sales increased 4.5% for the quarter. Net income totaled $3.5 million, or $0.09 per share, for the quarter. Adjusted EBITDA, a non-GAAP measure, was $6.7 million, compared to $3.8 million for the same period last year. Gross margin rate increased 95 basis points to 36.8%, as compared to last year's third quarter.