USA: Christopher & Banks Posts Record Q2 Profit

By just-style.com | 25 September 2002

Women's fashion retailer Christopher & Banks Corp has posted a 30 per cent jump in second quarter net profit to $6.9 million from $5.3m in the year-ago period thanks to strong sales and margin improvements.

The Minnesota-based operator of 411 stores, including the CJ Banks plus-size clothing chain, said total sales in the quarter to August 31 soared 28 per cent to $73.9m from $57.8m, with same-store sales up six per cent.

But it warned it expects September same-store sales to be flat amid and said it sees mid-single digit rises in sales for the remainder of the fall and holiday seasons. It will also open 30 new stores in the third quarter.

Chairman and CEO, Bill Prange, commented: "We are extremely pleased to report record sales and earnings for the second quarter.

"Continued strong acceptance of the Christopher & Banks and CJ Banks brands enabled us to post strong overall sales growth. Earnings growth was also fuelled by a 130 basis point improvement in gross margin."

He added: "While we are very satisfied with our year-to-date results, the retail environment remains challenging. Based on month-to-date results, which we believe have been impacted by a slowdown in customer traffic and spending, we anticipate September same-store sales will be essentially flat with last year."

Companies: CJ Banks