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What: Shares of Christopher & Banks (NYSE:CBK) were looking sharp today, gaining as much as 13% after a strong third-quarter earnings report.
So what: The women's clothing chain posted a profit of $0.23 per share, up from $0.10 a year ago, and sped past estimates of $0.11. Revenue, meanwhile, increased 0.7% to $118.1 million, beating expectations of $117.2 million. Same-store sales were better, improving 4.9%, as its "store rationalization" program appears to be bearing fruit. Its store count in the quarter fell by 7% from a year ago. CEO LuAnn Via said the bottom-line results were "strong" and reflective of "the continued refinement of our marketing strategy," among other things.
Now what: Going into the holiday quarter, Christopher & Banks expects same-store sales in the low single digits, and noted that the retail environment has been "challenging" this year. Still, the company's turnaround strategy appears to be firing on all cylinders, as it doubled profits and crushed earnings estimates. Analysts are expecting a $0.01 per-share loss for the current quarter, but I'd expect them to bump up their projections in light of today's report.