Christopher and Banks plans to diversify the vendor base and add key suppliers with expertise along category lines thereby mitigating costing pressures which are occurring across the industry.

- In marketing, focus going forward continues to be on growing the customer database through increasing efforts on the email capture which will provide a cost-effective means of reaching customers on a regular basis.
- In fiscal 2009, the firm expects to increase the number of carefully thought out, pre-planned promotions which will drive home the value proposition and increase awareness of the brand.
- Another important initiative is the evaluation of the real estate strategy as the firm sees opportunity in all small locations in lifestyle and strip centers, with approximately 30 new stores planned in fiscal 2009 and ten (10) closures anticipated.
- The firm also plans to install new point of sale registers in 550 of the stores by the end of the second quarter to facilitate the transition to a selling culture across the entire field organization.

Status of The E-commerce Business:

- The firm successfully launched the C.B. and C.J. websites this February and customers and store associates have responded favorably.
- Both e-commerce sites are off to a strong start with early sales exceeding initial expectations and the firm is working towards forecasting and adjusting inventory levels to keep pace with the demand by division and by product.

In addition, the firm is in the initial phases of rolling out the online marketing efforts that will help build brand awareness and contribute to growing e-commerce sales.

- The firm is currently using the new allocation module, which gives increased flexibility and product placement to easily manage store groupings for volume, climate, and size assorting.
- These new capabilities will contribute to the success of the initiative around increased product flow and management of SKUs and store unit capacity.

Fiscal 2009 Outlook:

- Christopher and Banks expect earnings per share in the range of 25 cents to 27 cents compared to 32 cents per share in the first quarter of fiscal 2008.
- In the first quarter, the firm plans to increase marketing related expenses by approximately 100 basis points over last year.

Key questions and answers from the fourth quarter earnings call conducted by Christopher and Banks Corp. on April 9, 2008.

Lyn Walther (Wachovia Securities): Comment about the frequency of the friends and family event?

Lorna Nagler: We really feel good that the friends and family event is a great way to really reward our loyal customers and invite new customers to get to know our brands in truly a great grassroots event. But certainly to make it special, we need to limit the number of times we do that to really keep the essence of what it’s all about.

Lyn Walther (Wachovia Securities): On Acorn, how long do you think it is going to take before that gets where you are comfortable?

Lorna Nagler: Acorn’s performance has been disappointing and it certainly contributed negatively to the company’s earnings. Having been here a little more than six months, I have had the time to review in detail the Acorn strategy, as well as the past performance.

Poor performance is due to a number of factors, including a number of our store locations, the size of the locations, merchandise selection, and a clear lack of a clear identity or brand, as well as the overall retail environment.

However, I continue to believe that this well-conceived and effectively executed boutique strategy really can be successful and clearly there is white space in the market for this kind of concept.

Roxanne Meyer (Oppenheimer): Can you disclose what your exposure to China is now?

Lorna Nagler: We currently have the majority of our products sourced in China and we see that with the increased costs and the other pressures on China, that it is in our best interest to diversify. With this diversification strategy we will mitigate the cost increases that we are seeing.

Roxanne Meyer (Oppenheimer): How many stores do you currently have off-mall now?

Monica L. Dahl: We have less than 15% of our existing store base is off-mall currently.

Margaret Whitfield (Sterne, Agee & Leach): How much are you spending on marketing as a percent of sales and how is that distributed?

Andrew K. Moller: Last year we spent 1%, with more being spent in the second half of the year. This year, we are planning to be around 1.5% for the full year. Going forward, this year in terms of the consulting piece, we will bring on people as full-time equivalents versus using as many consultants and we would expect to have a reduction there.