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Earnings Calls: 
Christopher and Banks Fourth Quarter Earnings Call
Author: 123jump.com Staff
123jump.com
Last Update: 4:23 PM EDT April 17 2007


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The specialty retailer of women’s apparel reported revenue increase of 6% to $134 million due to positive customer response experienced to the spring collection in March. The fourth quarter benefited from an extra week compared with the year-ago quarter. Same-store sales dropped 7%. Weaknesses in the categories of sweaters and fashion knit tops hurt the most during Q4. The company expects Q1 earnings in the range of 30 cents and 31 cents a share and plans to open 70 stores in fiscal 2008.


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Travel Knit has opportunity in the future and the company has focused its plans on these other extensions. Until the company gets more consistent performance on the Travel Knit it will hold back. It will re-evaluate it going forward. At this point it is not in any stores.

Could you comment on the benefit of Easter?

Christopher & Banks’ fiscal April actually ends on May 5th. The company will not announce April until May 10th.

Do you have an update on the search for chief merchant?

The company has reignited that search. The company should know more in the next month.

When is the next floor set coming in?

The next floor set will be a week from this past Monday for all stores.

Could you comment on the accessories?

There will be a different color palette and more of a buy now, wear now approach to the merchandise in the last collection. There is a stronger focus on dresses and skirts for that time of year as well as tops and presentations of cut and sew.

Will you be offering any special promotions?

The company has a test of two-furs. It has picked several items that will start in April for Christopher & Banks and in May for C.J. Banks. These are key items that provide a promotional incentive to buy more than one of an item.

The H land number went down to five stores from last year’s 16. Is there anything happening there?

Christopher & Banks has intended to be more modest in that growth for Acorn. It is about allowing its real estate team to put their efforts into the two base businesses from a real estate perspective. C.J. and Christopher & Banks are still the company’s priorities from an immediate year growth standpoint.

You recently hired vice-president in real estate. What are her initial thoughts on the current store base?

Christopher & Banks hired a woman that joined the vice-president of real estate in the middle of February. She has been with the company just a month-and-a-half. Her priorities since joining Christopher & Banks are on this year’s openings and ensuring that the deals that are being brought to the table are quality deals. Simultaneously she is spending time getting her arms around the current portfolio.

Marketing spend would be 1% of sales. What do you think about that in terms of impact quarterly?

The bulk of the marketing spend is around the CRM effort or initiative over prior year’s spend. The company had always said it would test about search to eight communications during the fiscal year. The company’s intentions are to develop that business in the back half of the year. A more significant amount of that spend will be in the back half of the year in terms of total dollars.

What changes did you make in assortment based on your experience from last year?

Last year Christopher & Banks did leather. It is going to expand that to some scarves, belts and other components. The company will not be doing jewelry. It will have fixturing for the products, which was a big miss for last year. It has hounded to the best-selling accessory stores last year. The company has the line from last year from a geographic and regional perspective along with its fixturing and broader assortment.

Could you talk about some of the opportunities in the second half from the strategic changes you are making in terms of the merchandise flow or marketing plans?
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