Posting a loss for quarter, some changes afoot at C&B

Women's specialty retail chain Christopher & Banks reported a fourth-quarter loss Wednesday, as double-digit declines in store traffic dogged it every month, from Christmas right through Easter.

The Plymouth-based company reported a loss of $8.3 million, or 23 cents a share, in the quarter ended March 1. A year earlier, it posted earnings of $1.9 million, or 5 cents a share.

Stores open at least a year, a key measurement of a retailer's fiscal health known as same-store sales, fell 3.5 percent in the quarter. Net sales fell more than 6 percent, to $125.3 million.

CEO Lorna Nagler, who took over the company in August, said that the disappointing results overshadowed important work going on in the background that should fortify the retailer's position against midprice competitors such as J.C. Penney and Menomonee, Wis.-based Kohl's.

The company, which operates Christopher & Banks, plus-sized C.J. Banks and upscale boutique Acorn, said it has reduced inventories by 22 percent, and will continue to focus on moving merchandise through stores more quickly to keep sales racks fresh.

Meanwhile, about 550 of the 837 stores will get updated cash registers with new technology to help stores streamline markdowns, effectively manage promotions and help pinpoint regional differences in fashion and merchandise.

Nagler told analysts in a conference call Wednesday that the company will continue to invest in the business, despite "economic distractions."

The chain, less dependent on holiday sales than most retailers, projected solid first-quarter earnings of 25 to 27 cents per share, which boosted the stock about 10 percent, to $11.87, in after-market trading. Same-store sales are expected to be flat.

For the year, net income was $17 million, or 47 cents a share, down about half from last year's $33.7 million, or 89 cents a share. Part of the hit came from charges of $9.6 million, or 16 cents a share, taken in the fourth quarter, much of it related to the struggling Acorn chain, acquired in 2004.

Saying Acorn "lacks an identity," Nagler said she hopes to reposition it by featuring more recognizable brands, such as designer Karen Kane, which the company recently added.

And shoppers may soon notice other changes at Christopher & Banks stores.

Petites, now in 95 stores, will be in 300 stores by September. And by the end of May, customers will start seeing jewelry offerings in 100 Christopher & Banks stores and at 50 C.J. Banks.

The company plans to open 30 new stores this year and close 10. But it's shifting away from traditional mall locations. About 80 percent will sprout in off-mall locations that Nagler believes are better suited to time-crunched shoppers who value convenience as much as price.

Jackie Crosby • 612-673-7335