Why Christopher & Banks Corporation Shares Bounced

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Christopher & Banks Corporation  (NYSE: CBK  ) were moving higher today, gaining as much as 17% and finishing 10% higher on a strong earnings report.

So what: The clothing seller said profit improved from $0.02 a share a year ago to $0.07 a share, better than the $0.02 analysts expected as profitability improved while the company's store base decreased by nearly 10% over the year. Gross margin increased 250 basis points to 36.7%, evidence that the strategy is working, though same-store sales fell 0.2% and overall revenue declined 4.7% to $103.4 million, essentially in line with estimates of $103.2 million

Now what: Like many retailers, Christopher & Banks said poor winter weather had an impact on sales, as comps came in below expectations, but CEO LuAnn Via said business improved along with the weather and the company "realized momentum on its strategic initiatives." Looking ahead, management sees a same-store-sales increase of low to mid-single digits in the current quarter, surpassing a 7.7% increase a year ago, and it expects a gross margin improvement of 100 to 150 basis points. With the store closure portion of strategy now mostly behind it, the company is focusing on growth in its Missy, Petite, and Women stores, which are outperforming the rest of the company and should lead to greater profits. Considering the modest expectations for Christopher & Banks for the rest of the year, beat I wouldn't be surprised to see more earnings beats down the line.

Will this stock be your next multibagger?
Give us five minutes and we'll show how you could own the best stock for 2014. Every year, The Motley Fool's chief investment officer hand-picks one stock with outstanding potential. But it's not just any run-of-the-mill company. It's a stock perfectly positioned to cash in on one of the upcoming year's most lucrative trends. Last year his pick skyrocketed 134%. And previous top picks have gained upwards of 908%, 1,252% and 1,303% over the subsequent years! Believe me, you don't want to miss what could be his biggest winner yet! Just click here to download your free copy of "The Motley Fool's Top Stock for 2014" today.

 


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2989722, ~/Articles/ArticleHandler.aspx, 11/23/2014 5:10:15 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement