This is a summary of the first quarter fiscal 2009 earnings call conducted by Christopher & Banks Corp. (CBK: chart) on June 26, 2008

Management:

- President and Chief Executive Officer: Lorna Nagler
- Executive Vice President, Chief Financial Officer: Andrew Moller
- Executive Vice President, Chief Operating Officer: Monica Dahl

Key Investors Issues:

- Sales were $159.6 million, up 6.8% from $149.4 million in 2007.
- Net income was $11.3 million or 32 cents a share, down marginally from $11.7 million or 32 cents a share in the year ago period.
- The company had $91.5 million in cash, cash equivalents and short-term investments compared to $96.6 million in cash, cash equivalents and short-term investments as of the end of the comparable quarter last year.

First Quarter Highlights:

Total sales were $159.6 million, up 6.8% from $149.4 million in the prior year as same-store sales were flat.

- Net income was $11.3 million or 32 cents a share, down marginally from $11.7 million or 32 cents a share on higher expenses.
- Operating income was $17.9 million or 11.2% of sales, compared to $18.1 million or 12.1% of sales last year.
- Merchandise buying and occupancy expense was $90.5 million or 56.7% of sales compared to $86.9 million or 58.2% of sales in last year''s first quarter.
- Selling, general and administrative (""SG&A"") expenses were $44.8 million, or 28.1% of sales, compared to $39.1 million or 26.2% of sales in 2007.

The Company had $91.5 million in cash, cash equivalents and short-term investments, down from $96.6 million in the prior year.

- The Company operated 850 stores as of May 31, 2008 as compared to 801 stores at June 2, 2007.
- Total inventory was $42.1 million this year compared to $58.8 million last year.
- Excluding e-commerce, inventory per store was approximately $48,000 this year compared to $73,000 last year.
- Depreciation was $6.5 million in the first quarter compared to $5.3 million last year.

Second Quarter Guidance:

- Earnings per diluted share will be around 3 cents a share, compared to earnings per diluted share of 9 cents a share in fiscal 2007.
- The Company is expecting same-store sales in the negative high single digit range versus the same period last year.
- It also expects the current macroeconomic and consumer environment to remain difficult, adversely impacting store traffic and resulting in a highly promotional retail environment.
- The company expects a mid single-digit increase in the dollar amount of depreciation expense as compared to this year when depreciation was $6.5 million.

Key questions and answers for the first quarter fiscal 2009 earnings call, conducted by Christopher & Banks Corp. (CBK)) on June 26, 2008

Lyn Walther: Elaborate on the SG&A dollar growth, is it increased marketing or entirely de-leveraging?

Andrew Moller: The bigger piece of it is e-commerce which we did not have last year and so with it, we are getting extra sales that come along with costs. We have an increase in administrative payroll.

In the first quarter we see an increase and have a higher degree of employee participation in our plan so those are the combined things that work together to show the increase in SG&A expense over last year’s quarters.

Lyn Walther: You did a flat comp this quarter which have Friends and Family event, what is the run rate without that?

Lorna Nagler: We started to see reduced traffic in May and the colder weather, impacted our summer-type categories and we have to be cautious based on the highly volatile nature of the current environment.

Roxanne Meyer: In terms of marketing, elaborate marketing strategy and to what extent are you playing defense versus offense?

Monica Dahl: We spent money on positioning ourselves so that we have a library for in-store marketing which allows us to be readily able to react to business. We also continue to test and try direct mail pieces, and we have inventory that we liquidated.

Roxanne Meyer: Looking to the back half of the year besides continuing to expand the Petites business, elaborate any other new categories, tests or new initiatives on the merchandising side?

Monica Dahl: The accessory business delivered about 100 CB stores and about 50 CJ stores jewelry which is the great outfit completer. We launched in a select group of stores called Assets by Spanx which is a lower priced product.

Christopher Kim: What do you have in store this quarter in terms of the promotional perspective whether Bogo or broader based promotions, which one is the customer responding to right now?