Christopher & Banks posts 8% decline in Q3 sales

Christopher & Banks Corporation recorded net sales of $98.5 million for the third quarter of fiscal 2017, a decrease of 7.7 per cent, while operating on an average 473 stores. This compared to $106.7 million in net sales for the third quarter of fiscal 2016, while operating on an average 506 stores.

The company's comparable sales also decreased 5 per cent following a 4.5 per cent increase in the same period last year, while its e-commerce sales increased 8.5 per cent following a 16.3 per cent increase in the same period last year.

Gross margin rate decreased to 33.8 per cent, as against last year’s third quarter, primarily due to continued higher promotions and markdowns to move through non-go-forward product and address slow sellers more quickly.

"We remain pleased with the progress of our turnaround, and with the inflection point we saw in our business late in October. For the fourth quarter-to-date, comparable sales are up mid-single-digits reflecting an increase in transactions and average dollar sales," said Joel Waller, interim president and chief executive officer.

"While the third quarter was somewhat disappointing, we attribute this partially to weather and saw the timing of our sales improvement coincide with more seasonable weather as well as the receipt of new holiday merchandise. Both outlets and e-commerce saw positive comp increases in the third quarter which have accelerated in the fourth quarter-to-date. We remain focused on refining our merchandise assortment to strike the right balance between fashion and core product, improving the flow of fashion and newness, and leveraging our marketing programs to connect with our customers. Overall, we believe that continuing to execute on our strategic plan will ultimately drive long-term, sustainable growth," concluded Waller.