Christopher & Banks Corporation (CBK) saw its loss narrow to $17.22 million, or $0.46 a share for the quarter ended Jan. 28, 2017. In the previous year period, the company reported a loss of $46.63 million, or $1.26 a share. Revenue during the quarter dropped 10.14 percent to $84.98 million from $94.57 million in the previous year period. Gross margin for the quarter contracted 613 basis points over the previous year period to 24.76 percent. Operating margin for the quarter stood at negative 20.75 percent as compared to a negative 7.82 percent for the previous year period.
Operating loss for the quarter was $17.64 million, compared with an operating loss of $7.39 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $14.14 million compared to negative $3.70 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at negative 16.64 percent for the quarter compared to negative 3.91 percent in the last year period.
Joel Waller, Interim president and chief executive officer, commented, "While our fourth quarter results were disappointing, I am confident we have identified the key issues facing the Company and are well down the path to addressing them. Over the next several quarters we will take aggressive steps to (i) develop a differentiated product assortment with a greater mix of relevant fashion and establish a consistent flow of newness, (ii) recapture Missy customers by rebalancing the MPW assortment, and (iii) address the underperformance of our outlets through a cross functional team dedicated to ensuring their planning, buying, and allocation needs are addressed promptly and effectively. Given that we are making a number of changes in the business over the next several months and that enhancements to the merchandise assortment are not expected to be fully reflected until the third quarter, for the near term we will not be providing sales and EPS guidance. Overall, we believe that these strategic initiatives will strengthen our competitive positioning within the retail landscape and will drive improved and more consistent financial performance for our stakeholders over the long term, beginning in the second half of fiscal 2017."
Operating cash flow improves significantly
Christopher & Banks Corporation has generated cash of $9.92 million from operating activities during the year, up 84.23 percent or $4.53 million, when compared with the last year. The company has spent $6.41 million cash to meet investing activities during the year as against cash outgo of $11.10 million in the last year.
The company has spent $0.01 million cash to carry out financing activities during the year as against cash outgo of $0.03 million in the last year period.
Cash and cash equivalents stood at $35.01 million as on Jan. 28, 2017, up 11.11 percent or $3.50 million from $31.51 million on Jan. 30, 2016.
Working capital drops significantly
Christopher & Banks Corporation has witnessed a decline in the working capital over the last year. It stood at $31.48 million as at Jan. 28, 2017, down 32.41 percent or $15.10 million from $46.58 million on Jan. 30, 2016. Current ratio was at 1.67 as on Jan. 28, 2017, down from 2.06 on Jan. 30, 2016.
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