Women's apparel retailer Christopher & Banks corp (CBK) reported Thursday a sharp decline in first-quarter profit, reflecting a 24% year-over-year decrease in same store sales. However, the per share earnings surprised analysts who were expecting a loss in the first quarter. The company also said that it anticipates the comparable store sales trend for the second quarter to be similar to the first quarter.
For the first quarter, net income dropped to $1.7 million or $0.05 per share from $11.3 million or $0.32 per share in the previous year. On average, four analysts polled by Thomson Reuters expected the company to report a loss of $0.05 per share. Analysts' estimates typically exclude special items.
In the prior year, the company had reported a net income from continuing operations of $11.7 million or $0.33 a share.
Net sales for the quarter decreased sharply year-over-year to $120.4 million from $155.4 million. Wall Street was looking for revenue of $121.72 million in the first quarter. Comparable store sales from continuing operations were down 24%.
Total costs and expenses reduced year-over-year to $117.9 million from $136.7 million, as merchandise, buying and occupancy costs came down to $75.5 million from $86.7 million and selling, general and administrative expenses decreased to $36.1 million from $43.6 million in the prior-year period.
Looking ahead, the company expects the comparable store sales trend for the second quarter to be similar to the first quarter. Christopher & Banks also expects to be cash flow positive in fiscal 2010 and projected capital expenditures to range from $8 million to $9 million for the full year.
CBK closed Wednesday's regular trading hours at $5.50 on the NYSE.
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