Christopher & Banks sales fall 30% in second quarter
Sep 15, 2020
Plymouth, Minnesota-based womenswear retailer Christopher & Banks Corporation reported a 29.9% decrease in revenues in Q2, as a spike in e-commerce sales helped to partially offset declines related to store closures and slower traffic.
For the second quarter ended August 1, 2020, the company announced net sales of $58.5 million, down from $83.4 million in the same period in the previous year. Both temporary store closures related to Covid-19 and reduced traffic upon reopening took their toll on the retailer’s top line, but a 70.9% increase in e-commerce sales helped the company avoid a repeat of Q1’s 51.8% dive in revenues.
Quarterly net loss at Christopher & Banks was $15.1 million, or $0.40 per diluted share, compared to a net loss of $5.9 million, or $0.16 per diluted share, in the prior-year period.
In the first half of the year, the company’s net sales totaled $98.6 million, reflecting a 40.8% decrease from $166.7 million in the first six months of the previous fiscal year. The retailer’s net loss for the period came to $32.3 million, or $0.86 per diluted share, compared to a loss of $12.1 million, or $0.32 per diluted share, in the first half of the previous year.
“Prior to Covid, we were on our path to recovery through the execution of our strategic initiatives,” explained Christopher & Banks president and CEO Keri Jones. “We are acutely focused on driving sales, managing inventory, minimizing expenses and protecting cash as we continue to navigate this pandemic and we believe we have adequate cash and availability to continue to effectively operate the business.”
Jones also highlighted that the company is currently partway through lease negotiations with its landlords and is pleased with the progress it is making on this front.
In light of the continued uncertainty surrounding Covid-19, Christopher & Banks has not provided financial guidance for the third quarter or full fiscal year.
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