The database has over 1.5 million names. In March, the company spent 1/3 of its communications which was a cascading over to 100,000 customers. This was a follow-up to the November and December communications last year.

Weaknesses in the categories of sweaters and fashion knit tops hurt the most during the fourth quarter.

The company experienced mixed results in denim classification and comparatively strong performance in jacket and woven top business.

Fiscal 2007 Highlights

- Net sales were $547 million, a 12% increase over last year.
- Earnings per share rose 6% to 89 cents versus 84 cents the year prior.
- Comparable store sales increased 1%.
- Operating income was at 9.1% of sales.
- Net income increased 11% of $33.7 million.
- Capital expenditures were approximately $30 million.
- The company finished the year with a 10% increase in cash and short-term investment position. This number is $102 million versus last year’s balance of $92 million.

- The company opened 78 new stores.
- The company ended the year with 778 stores versus 705 stores in fiscal 2006.

Fiscal 2008 Outlook

- First quarter guidance EPS remains at 30 cents per share to 31 cents per share.
- Second quarter guidance is 21 cents per share to 22 cents per share.
- Third quarter increase is 38 cents per share to 29 cents per share.
- Fourth quarter guidance is 9 cents per share to 10 cents per share.

- With investments in marketing and other areas of the business, the company anticipates that a 4% comparable store sales increase is needed on an annual basis to achieve leverage of SG&A expense.

- The company plans to open approximately 70 stores, comprised of 25 Christopher & Banks stores, 40 C.J. Banks and 5 Acorn stores.
- Christopher & Banks 25 new stores will continue to be both mall and Lifestyle based. The store openings on a quarterly basis are planned to be 25 new stores in the first quarter, 10 in the second quarter, 35 in the third quarter, and as typical, none in the fourth quarter.

- The company plans to continue growing the database, testing various methods and communication vehicles.
- Marketing spend is estimated to be less than 1%, which is up from past years.
- Business plans are underway to launch E-Com business.

- The company is planning to invest approximately $37 million in capital expenditures. Approximately $31 million will be invested in new store openings, store remodels, additional display fixtures and point-of-sale register upgrades.
- The company plans to spend approximately $6 million to make certain information technology investments and reconfigure its Plymouth, Minnesota distribution center.

Key questions from the fourth quarter earnings call conducted by Christopher and Banks Corp. on April 11, 2007.

What are your comparable store sales expectations for the year?

The second quarter is with an expectation of a low single digit comparable sales increase. In the back half of the year, the company expects a mid single digit comparable store sales increase.

In the fourth quarter there seems to be a lot of opportunity with the fashion midst, traffic levels and overall in the space. Would you characterize your guidance as being conservative?

At this point the company thinks it is realistic guidance. It has had more difficulty in the back half of the year. Over time than it has had in the front half of the year. At this point Christopher & Banks wants to be conservative about its back half of the year guidance, particularly the fourth quarter.

How are you planning inventories at least for the near term for the second quarter and are they planned to be down on a per foot basis?

There has been no change. The company has been operating as it has come into the new year under a conservative approach. The second half of the year, given the last year, the inventory was built for holiday. Christopher & Banks has been more conservative. As the company comes out of first quarter, it still expects to maintain a mid single digit increase on a per store basis.

Why have you scaled back on the travel mix?