A sizable falloff in comparable-store sales and “highly promotional” sales environment more than tripled fourth-quarter losses at Christopher & Banks Corp.
For the three months ended Feb. 28, the Minneapolis-based women’s retailer posted a loss of $28.8 million, or 82 cents a diluted share, compared with a loss of $8.3 million, or 23 cents, a year ago.
Sales in the quarter fell 15 percent to $103.9 million from $122.3 million. The firm reported a 20 percent drop in same-store sales for the quarter.
The fourth-quarter loss included a pretax asset impairment charge of $7.3 million, or 17 cents a share, related mostly to underperforming stores and severance. In February, the company cut 24 corporate employees and 30 district managers as part of cost-reduction program intended to save $15 million this year.
“We were disappointed with our fourth-quarter earnings performance resulting from weak traffic combined with a highly promotional environment,” president and chief executive officer Lorna Nagler said. “Our core customer has been spending very sparingly on her wardrobe for the past six months, yet we remain confident that we are well capitalized to outlast this recession and are also positioned to benefit meaningfully when customers return to the mall.”
The company said it will cut capital expenditures by at least half in the coming year compared with last year, when they totaled $18 million, $8 million of which went to new stores and remodels with the rest allotted to technology initiatives. It expects capex to be between $8 million and $9 million in 2010.
For the year, Christopher & Banks recorded a loss of $12.8 million, or 36 cents a share, versus profits of $17 million, or 47 cents a share, in the previous 12 months. Sales in fiscal 2009 slid 5.4 percent to $530.7 million from $560.9 million in 2008.
The company declined to give first-quarter guidance.
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)
@heriethpaul and @gracebol have a moment on the @victoriassecret fashion show 2017. See every look from the runway on WWD.com. Link in bio. (📷: @giovanni_giannoni_photo) #wwdfashion #victoriassecret #VSFashionShow
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia