Welcome to our latest issue of ValueWalk’s hedge fund update. Below subscribers can find an excerpt in text and the full issue in PDF format. Please send us your feedback! Featuring Point72 Asset Management losing about 10% in January, Millennium Management on a hiring spree, and hedge fund industry's assets under management swell to nearly Read More
As of Oct 17’ 2012, the stock for Christopher & Banks Corporation (NYSE:CBK) closed at USD 3.71 representing a market capitalization of USD 137.7 million. The stock has achieved an average volume of 288,368 shares over the last three months and has traded between a range of USD 1.01 to USD 3.88 over the last year. The stock has been trading at a P/S ratio of 0.31 and a P/B ratio of 1.86.
New York & Company, Inc., together with its subsidiaries, operates as a specialty retailer of women’s fashion apparel and accessories in the United States. It provides wear-to-work and casual apparel and accessories, including pants, dresses, jackets, knit tops, blouses, sweaters, denim, T-shirts, activewear, handbags, and jewelry. As of Oct 17’ 2012, the stock has been trading at USD 3.56 with a total market capitalization of USD 217.49 million. The stock has been trading at a P/S ratio of 0.23 and a P/B ratio of 2.24.
For 6MFY12, the total net sales were recorded at USD 197.1 million as compared to USD 216.0 million for the corresponding period last year; representing a YoY decrease of 10.4% The major factors contributing to the overall decline in sales were the 4.9% decrease in same stores sales, combined with a 13% YoY decline in stores operated during the period. However, based on the results of the most recent quarter, the Company has started to stem the decline in its same store sales !
Merchandise, Buying and Occupancy Costs:
During 6MFY12, merchandise, buying, and occupancy costs, exclusive of depreciation and amortization, were recorded at USD 146.7 million (representing 74.5% of net sales), as compared to USD 149.2 million, (or 67.8% of net sales) during the corresponding period last year. This resulted in an approximate 670 basis point decrease in the Company’s gross profit margin during 6MFY12, as compared to 6MFY11, mainly driven by the decline in the company’s merchandising margins.
For 6MFY12 the Company recorded a net loss of USD 15.6 million (representing 7.9% of net sales ) and USD 0.44 per diluted share, compared to a net loss of USD 11.1 million (representing 5.0% of net sales) and USD 0.31 per diluted share for the corresponding period last year.
Factors to Watch Out:
- Started to turn around its declining same-store sales (SSS) under current management, according to the performance of the most recent quarter. The turnaround could be quick!