Christopher & Banks Q1 Profit, Revenue Rise - Update

(RTTNews) - Christopher & Banks Corp. (CBK), a specialty women's apparel retailer, Tuesday reported higher profit for the first quarter, helped by lower expenses, even as revenue dropped amid fewer stores.

Net income for the quarter climbed to $2.62 million from $629 thousand in the previous year. Earnings per share advanced to $0.07 from $0.02.

On average, three analysts polled by Thomson Reuters expected earnings of $0.02 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales dropped to $103.37 million from $108.52 million in the prior year. Analysts expected revenues of $103.23 million.

According to the company, it operated an average of 8.9 percent fewer stores than during the comparable period last year.

Total costs and expenses dropped to $100.57 million from $107.74 million in the prior year, mainly due to lower Merchandise, buying and occupancy costs.

Same-store sales slipped 0.2 percent in the thirteen weeks ended May 3, 2014, as compared to the thirteen weeks ended May 4, 2013. This follows a 23.4 percent same-store sales increase in last year's first quarter.

Gross margin improved to 36.7 percent from 34.2 percent last year.

LuAnn Via, President and CEO, said, "Throughout the first quarter, we realized continued momentum in our strategic initiatives despite the challenges presented by the severe winter weather experienced during the first half of the quarter.''

Via added that while comparable store sales were slightly below expectations for the quarter, business improved as the weather became more seasonal. The company exceeded its gross margin expansion target with a refined merchandise offering and enhanced inventory strategies.

For the second quarter, the firm expects same-store sales to increase in the low to mid-single digit range, which compares to a 7.7 percent same-store sales increase last year in the second quarter.

CBK closed down 0.8 percent on Monday at $6.65.