Christopher & Banks Corp. (CBK, Financial) filed Quarterly Report for the period ended 2012-04-28.
Christopher&bnk has a market cap of $40.2 million; its shares were traded at around $1.03 with and P/S ratio of 0.1.
Net Sales. Net sales for the thirteen weeks ended April 28, 2012 were $93.6 million, a decrease of approximately $30.2 million, or 24.4%, from $123.8 million for the thirteen weeks ended May 28, 2011. The decrease in sales resulted from a 15% decrease in same store sales, combined with operating an average of approximately 12% fewer stores in the first quarter of fiscal 2012 compared to last year.
Selling, General and Administrative Expenses. Selling, general and administrative expenses, exclusive of depreciation and amortization, for the thirteen weeks ended April 28, 2012 were $30.8 million, or 32.9% of net sales, compared to $35.4 million, or 28.6% of net sales, for the thirteen weeks ended May 28, 2011. Increases in salaries as a percentage of net sales accounted for 250 of the 430 basis points of deleveraging of selling, general and administrative expenses. In addition, approximately $0.3 million of severance expense was recorded in the first quarter of fiscal 2012 in connection with the resignation of our former CEO during the quarter. These increases in selling, general and administrative expenses as a percentage of sales were partially offset by savings in medical claims for the thirteen-week period ended April 28, 2012, compared to the thirteen-week period ended May 28, 2011.
Net Income (Loss). As a result of the foregoing factors, we recorded a net loss of $13.4 million, or 14.3% of net sales and $0.38 per diluted share, for the thirteen weeks ended April 28, 2012, compared to net income of $1.9 million, or 1.5% of net sales and $0.05 per diluted share, for the thirteen weeks ended May 28, 2011.
Net cash used in operating activities totaled $26.5 million in the first thirteen weeks of fiscal 2012, a decrease of approximately $27.7 million from net cash provided by operating activities of $1.2 million in the first thirteen weeks of the transition period. The decrease was the result of a decrease in net earnings in the first thirteen weeks of fiscal 2012, compared to the first thirteen weeks of the transition period, combined with changes in our working capital accounts. We reported a net loss of $13.4 million for the thirteen weeks ended April 28, 2012, compared to net income of $1.9 million for the thirteen weeks ended May 28, 2011.
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Christopher&bnk has a market cap of $40.2 million; its shares were traded at around $1.03 with and P/S ratio of 0.1.
Highlight of Business Operations:
We continued to experience challenging business trends in the first quarter of fiscal 2012. Although we reduced prices on a significant number of our styles, we were only able to impact the product styling and balance on approximately 10% of our merchandise assortment delivered in the first quarter. As a result, our customers continued to resist the more fashion-forward, higher-priced styles that we began selling in the third quarter of our transition period. Same store sales declined 15% in the first quarter and merchandise margins decreased by approximately 870 basis points when compared to the first quarter of the transition period. The decrease in margins was the result of an increase in promotional activity as we took deeper markdowns to drive net sales and clear through slower selling product. We reported a net loss of $13.4 million, or $0.38 per share, for the quarter.Net Sales. Net sales for the thirteen weeks ended April 28, 2012 were $93.6 million, a decrease of approximately $30.2 million, or 24.4%, from $123.8 million for the thirteen weeks ended May 28, 2011. The decrease in sales resulted from a 15% decrease in same store sales, combined with operating an average of approximately 12% fewer stores in the first quarter of fiscal 2012 compared to last year.
Selling, General and Administrative Expenses. Selling, general and administrative expenses, exclusive of depreciation and amortization, for the thirteen weeks ended April 28, 2012 were $30.8 million, or 32.9% of net sales, compared to $35.4 million, or 28.6% of net sales, for the thirteen weeks ended May 28, 2011. Increases in salaries as a percentage of net sales accounted for 250 of the 430 basis points of deleveraging of selling, general and administrative expenses. In addition, approximately $0.3 million of severance expense was recorded in the first quarter of fiscal 2012 in connection with the resignation of our former CEO during the quarter. These increases in selling, general and administrative expenses as a percentage of sales were partially offset by savings in medical claims for the thirteen-week period ended April 28, 2012, compared to the thirteen-week period ended May 28, 2011.
Net Income (Loss). As a result of the foregoing factors, we recorded a net loss of $13.4 million, or 14.3% of net sales and $0.38 per diluted share, for the thirteen weeks ended April 28, 2012, compared to net income of $1.9 million, or 1.5% of net sales and $0.05 per diluted share, for the thirteen weeks ended May 28, 2011.
Net cash used in operating activities totaled $26.5 million in the first thirteen weeks of fiscal 2012, a decrease of approximately $27.7 million from net cash provided by operating activities of $1.2 million in the first thirteen weeks of the transition period. The decrease was the result of a decrease in net earnings in the first thirteen weeks of fiscal 2012, compared to the first thirteen weeks of the transition period, combined with changes in our working capital accounts. We reported a net loss of $13.4 million for the thirteen weeks ended April 28, 2012, compared to net income of $1.9 million for the thirteen weeks ended May 28, 2011.
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