A Minneapolis-based retailer of women's specialty apparel, which operates retail stores through its wholly-owned subsidiaries, Christopher & Banks, Inc., Christopher & Banks Company and Christopher & Banks Services Company.
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Christopher and Banks is a specialty retailer operating under the Christopher and Banks, C.J. Banks, and Acorn names. Christopher and Banks and C.J Banks stores offer assortments of sportswear and sweaters whereas Acorn stores offer upscale women’s fashions along with complementary jewelry and accessories. The company operates 524 Christopher and Banks, 218 C.J Banks and 37 Acorn stores across U.S.
Many U.S retailers target baby boomers, which today form 29% of the U.S population. With more disposable income and longer life spans, women from baby boomers generation outpace average women apparel spending by 13%. This paints a good picture about the company, which targets female baby boomers. Yet, third quarter performance was mediocre, as novelty and embroidered assortments did not work well for the company. However, management has identified the earlier missteps and will offer more cotton rich and casual assortments for 2007.
Further, the company plans to open 80 new stores in 2007. Majority of the openings are dedicated to C.J Banks as management senses an opportunity to open more stores in areas where these stores already have a strong brand presence. C.J banks, which contributes good percentage to overall revenues, has shown decent performance, so far, in this fiscal. Overall, the company has been able to achieve double-digit revenue growth over the years.
Looking at the merchandising initiatives, CBK Sport line will be launched in 150 stores in March 2007. The company is upbeat on travel knits and expanded its assortment from 20% to 40% of the store base. Moreover, Jacket business, where the company wants to expand its offerings has been a star performer. Further, the company is planning to upgrade its point of sale system, which will bring in efficiencies in their inventory management. Considering all these factors, the scrip looks good enough to bank on.
U.S. based women apparel retailer Christopher & Banks (CBK) lost some of its sheen in the fourth quarter of 2006. Same store sales declined by 7% on account of unsupportive weather conditions and highly embellished offerings that resulted in lower customer traffic. However, CBK has learned a lesson from its previous merchandising missteps and has plans to amend. The company has made improvements especially in its spring merchandise and has restrained from trying anything, which is too dressy. Additionally, CBK has broadened its accessories portfolio by selling scarves and belts, which is additional to their jewelry and leather offerings. ‘CBK Sport Line’, which was rolled out in 168 stores in March ’07 has gained traction. Encouraged by this performance, CBK plans to sell this brand in 450 Christopher & Banks stores, which could aid the top line growth. The company looks pretty aggressive in expanding its store base as it plans to open 70 more stores in fiscal 2008 with more focus on C.J. Bank stores. The store expansion would not only expose CBK to its existing markets but also new markets like Florida and Carolina. On the infrastructure front, company has plans to advance its point of sale and data warehouse systems to enhance operational efficiencies. Moreover, CRM initiative coupled with e-commerce focus could better company’s fiscal 2008 fortunes. Summarizing these factors, the scrip looks an attractive investment proposition