Christopher & Banks Posts Profit On Tax Benefit, Outlook Weak; Stock Down 7%

(RTTNews) - Specialty women's apparel retailer Christopher & Banks Corp (CBK) on Tuesday reported fourth-quarter net earnings of $32.2 million or $0.86 per share compared with a loss of $0.3 million or $0.01 per share last year.

Results for the latest quarter included a benefit of $1.10 per share from the reversal of valuation allowance related to deferred taxes and the impact of error correction of $0.06 per share.

Meanwhile, the company's revenues for the quarter were lower at $98 million compared with $104.9 million in the prior year.

Analysts polled by Thomson Reuters estimated a loss of $0.10 per share on revenues of $97.1 million for the quarter. Analysts' estimates typically exclude special items.

The results were amid challenging traffic trends and an aggressive promotional environment, said CEO LuAnn Via in a statement.

The company's gross margin for the quarter dropped to 29.1% from 32.5% last year.

Operating expenses for the quarter totaled $103.9 million compared with $105.4 million a year ago.

For the first quarter, the company expects revenues of $90 million to $94 million, while analysts expect $108.2 million.

For the full year 2015, the company projects revenues of $422 million to $432 million, while analysts expect about $438.6 million.

The company said the weak guidance reflects the impact of the West Coast port delays.