NEWS: Christopher & Banks Corp. shares jumped Wednesday after the women's clothing company reported that its fiscal third-quarter profit more than doubled.
DETAILS: The company, which operates its namesake chain and plus-size clothing division CJ Banks, has benefited from the closures of less profitable stores, as well as improved merchandise and marketing.
NUMBERS: Net income rose to $8.6 million, or 23 cents per share, for the quarter that ended Nov. 2, from $3.6 million, or 10 cents per share, in its third quarter last year. The prior year includes a pretax restructuring charge of $333,000, or 1 cent per share. Revenue increased to $118.1 million from $117.3 million.
The company's revenue from stores open at least a year increased 4.9 percent. This is considered a key indicator of financial performance as it strips away the impact of recently opened or closed stores. Christopher & Banks operated 7.3 percent fewer stores this year than last. As of Dec. 4, it operated 593 stores in 44 states.
FUTURE: Christopher & Banks expects an aggressive promotional environment for the holidays, but remains confident that its new merchandise and marketing strategy will resonate with consumers.
The company expects its revenue from established stores to increase in the low single digit percentage range for its fourth quarter, with nearly 7 percent fewer stores. For the full year, the company expects its average store count will be down 8.4 percent and it will end the year with between 560 and 565 stores.
STOCK: Shares of the Minneapolis company increased 49 cents, a more than 7 percent gain, to $6.97 by midday amid a broader market dip. Its shares are up nearly 28 percent for 2013.
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