Even as pandemic stay-at-home orders loosened and Christopher & Banks was able to open stores, traffic has still been lighter than before the coronavirus hit the U.S.
A bright spot was the nearly 71% growth in the company’s e-commerce sales as some customers shopped online for the first time.
As a result, the Plymouth-based women’s apparel chain saw sales fall nearly 30% in May, June and July compared with the same period a year ago. The retailer lost $15.1 million during the quarter ended Aug. 1.
“I am very proud of our team’s efforts as we managed through this extremely challenging period and we remain committed to further advancing our strategies,” said Keri Jones, the retailer’s chief executive, in a statement early Friday. “At the same time, we are acutely focused on driving sales, managing inventory, minimizing expenses and protecting cash as we continue to navigate this pandemic, and we believe we have adequate cash and availability to continue to effectively operate the business.”
Like many apparel sellers, Christopher & Banks has had to adjust to changing consumer needs and logistical challenges as the pandemic has unfolded throughout the year.
Stay-at-home orders forced the company to close its stores in March. Net sales dipped to $58.5 million in the second quarter as the company continued to reel from temporary store closures with the company seeing selling days cut by more than one-third compared with the same period last year.
The company is working with its property landlords and is more than halfway through lease negotiations, Jones said.
She said earlier this year that the store’s more casual style was appealing to buyers as working from home continued.
“Importantly, with the strong customer response we have seen to new assortments, we believe that the substantial increase in new merchandise arriving over the next several months set us up for significantly improved performance in the back half of the year,” she said in a Friday statement.
Christopher & Banks’ available cash and cash equivalents, which fell to just $200,000 for the first quarter, improved to $2.8 million in the second quarter, with $4.6 million in short-term borrowing and $5.9 million of credit available. The company has long-term debt of $15 million, which includes a $10 million Paycheck Protection Program loan that the company believes will be forgiven.
Like many local companies, Christopher & Banks has decided to forgo its financial forecast for the remainder of the fiscal year due to the uncertainty surrounding COVID-19 and its impact on the retail industry.