Christopher & Banks Corporation (NYSE: CBK) had a better quarter in 1Q2016 compared to 1Q2016 as revenue rose and net losses narrowed significantly. But the company, which is struggling to turnaround its performance amid widespread retail challenge, issued a downbeat guidance for 2Q2016.
Christopher & Banks Corporation (NYSE: CBK) generated revenue of $100 million in 1Q2016, indicating an increase of 9.2% over the same quarter a year ago. Analysts on the average anticipated revenue of $96.88 million for the latest quarter.
Coming to the bottom-line, CBK posted a net loss of $0.2 million, significantly narrower than a net loss of $1.4 million in the corresponding quarter in 2015.
Comparable sales in the latest quarter rose 6.0%, exceeding the estimate of 2.5% and sharply above a year ago 11.7% pullback in comps.
What contributed the gains?
First, Christopher & Banks Corporation (NYSE: CBK) had lower comparisons to beat in the latest quarter. A year ago, the company faced serious disruptions in its business due to workers’ strike at the West Coast ports. That caused inventory shipment hiccups that hit sales and adversely tempered with the bottom-line.
According to CEO, LuAnn Via, strong management execution was also a factor that contributed to the favorable results in the latest quarter. An assorted merchandise and inventory optimization fueled the 1Q2016 gains.
Via also revealed that e-commerce also contributed strongly to CBK’s topline in 1Q2016. She attributed that to effective digital market. Improvement in digital sales is a positive sign for the future of CBK given that a growing number of customers are turning to their smartphones, tablets and computers to shop conveniently anywhere and anytime.
Christopher & Banks Corporation (NYSE: CBK) is set for a major board shakeup where six current directors will exit the board and four new ones will be added to the board. Among those expected to join CBK’s reshaped board is activist investor Jonathan Duskin, who will represent Macellum Capital Management.
2Q guidance for Christopher & Banks Corporation (NYSE: CBK)
Christopher & Banks Corporation (NYSE: CBK) guided 2Q2016 revenue in the band of 92 to $96 million against the consensus estimate of $97.39 million.