Christopher & Banks Shares Jump On Positive Q3 News

But the good news might not last for long, as the retailer predicts it will lose money again next quarter.

Shares of Christopher & Banks skyrocketed on Thursday as the company reported growing sales and a return to profitability.
 
By midday Thursday, the price was $2.10 per share—a 22 percent rise over Wednesday’s close and the highest its been since the middle of August.
 
The Plymouth-based women’s clothing retailer said net sales rose 2.9 percent to $106.7 million for the quarter ending October 29. That compares to $103.6 million for the same period last year.
 
The company also reported a profit of $3.5 million, or 9 cents per share. During the same time last year, the company was in the red with a loss of $0.3 million, or 1 cent per share.
 
“We are pleased with our third quarter performance, as we exceeded our original guidance as well as our preliminary results,” CEO LuAnn Via said in a statement. “As we look ahead, we expect continued momentum as we further execute across our strategic initiatives in merchandising, marketing and technology to drive long-term profitable growth.”

The company struggled last quarter with slumping sales and net losses.
 
The positive news came despite the fact that Christopher & Banks is operating fewer stores. In Q3 2016, an average of 506 stores were in operation. During the same time last year, there were an average of 533 stores. During the next quarter, the retailer will shutter another 30 storefronts, though retool a dozen of them into its Missy, Petite, Women branded store.
 
The good news for the company may not last long, however: The company is forecasting a year-over-year sales increase during the fourth quarter, but that it will have a net loss $4.1 million to $5.9 million, or about 11 to 16 cents per share.

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