Christopher & Banks Corporation (NYSE:CBK) admitted that the financial results it reported for 2Q2016 were far from what it expected. A conversion of the company’s online sales system produced the greatest negative hit that hampered the company’s ability to post favorable results. However, the management is keeping hope alive, saying that what happened in 2Q has little bearing on the long-term outlook of the company.
Christopher & Banks Corporation (NYSE: CBK) posted EPS loss of 0.11, which deteriorated from EPS loss of $0.02 in the same quarter last year. Analysts expected the company to post a loss in the latest quarter, but they were looking for a smaller EPS loss of just $0.06.
Coming to the topline, Christopher & Banks generated revenue of $89.9 million, indicating a decrease of 4.3% from the same quarter last year and falling below the consensus target of $94.87 million.
Christopher & Banks said its comparable store sales in the latest quarter didn’t fall as much as they did a year ago. Comp sales retreated 5.8% in the latest quarter, compared with a 12.4% decline in the same period last year.
With such performance, Christopher & Banks’ CEO, LuAnn Via, could only say that overall results in 2Q were well below what her team had expected for the quarter. However, she said that all was not lost, terming what happened in 2Q a short-term hiccup and saying that the long-term prospect of Christopher & Banks was looking bright.
What does that mean?
Christopher & Banks Corporation (NYSE: CBK) is confident that online sales will be a major growth driver in the coming years. As such, the conversion of the company’s e-commerce system that contributed to the 2Q sales hit should provide much greater topline boost than the short-term hiccups. CEO Via said that online sales in the period between mid-July and August rose by double-digits thanks to the new e-commerce platform that they have implemented.
3Q2016 outlook – Christopher & Banks Corporation (NYSE: CBK)
Christopher & Banks Corporation (NYSE: CBK) is looking forward to 3Q2016 sakes in the band of $102 to $108 million. Analysts on the average are expecting revenue of at least $107.8 million.