Christopher & Banks reports solid results from third quarter

Christopher & Banks is expecting its second-half rally this year to continue with a stronger holiday than last year.

At the same time, executives of the Plymouth-based women's apparel retailer said they would look to cut $5 million to $7 million in costs next year as they work to make the company more profitable.

The company's shares shot up 22 percent Thursday to close at $2.10 after it also reported improved quarterly results from this fall.

LuAnn Via, the chief executive who has been trying to turn around Christopher & Banks, said the company is looking to improve its cash flow after making various investments in technology in the last few years.

"We are also taking a close look at our costs and identifying opportunities for additional savings in a number of areas, including occupancy, and increased efficiencies in processes and contract negotiations," she said in a statement.

During the fourth quarter, which includes the holiday shopping season, the company said it expects comparable sales to rise 1 to 5 percent, compared with a 3.4 percent decline the year before. It also said it expects to narrow its loss in the quarter.

Last month, Christopher & Banks reported preliminary third-quarter results for the period ended Oct. 29. On Thursday, it released the final numbers for the quarter, saying that it swung to a profit with net income of $3.5 million, or 9 cents a share, compared with a net loss of $300,000, or 1 cent a share, in the same quarter a year ago.

Net sales increased 2.9 percent to $106.7 million with 506 stores, about 27 fewer than a year ago.

Via said customers were responding well to merchandising and marketing initiatives and noted the company was able to drive higher margins despite a highly promotional environment and unseasonably warm weather. The improved performance comes after a disappointing summer.