Christopher & Banks Corporation (NYSE:CBK) Q2 2020 Earnings Conference Call - Final Transcript

Sep 11, 2020 • 08:30 am ET

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Christopher & Banks Corporation (NYSE:CBK) Q2 2020 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

Thank you at this time, we'll be conducting a question-and-answer session. [Operator Instructions].Our first question comes from the line of Eric Beder with SCC Research. Please proceed with your question.

Analyst
Eric Beder

Good morning.

Executive
Keri L. Jones

Good morning Eric.

Analyst
Eric Beder

In terms of -- congratulations on the quarter and doing what needs to be done here in this crazy environments. If you look at the customers that are coming on online, the new customers, what kind of -- what are we looking at in terms of demographics? Are they kind of -- what's your core customers are and who are they migrating from?

Executive
Keri L. Jones

So we don't have all the complete data on that. We do know that we're tracking them through our digital marketing, primarily Facebook look alike marketing, and that they live within 20 miles of our stores. 8And so, that's the information we have currently. But obviously, we're digging into that to figure out where they're coming from. The other interesting point is, of the new customers, there's a slightly higher percentage in the women sizes than we typically see. So I think that's interesting given the disruption that we're seeing in those brands across the industry.

Analyst
Eric Beder

And when you look at the use of the credit card, I mean has that shifted around here or is that still -- what is the penetration with the private label credit card right now?

Executive
Richard Bundy

Yeah, we haven't seen any material changes in that. We've seen that kind of -- as the sales have gone up and down, we've seen the same thing, but our percentage hasn't changed significantly.

Analyst
Eric Beder

Okay. And could you talk a little bit -- I know that you signed a new agreement with ALCC post last Q -- post the quarter. Could you talk about what that's going to enable you to do in terms of inventory flexibility, and in terms of how the business can be run better?

Executive
Richard Bundy

Yeah, certainly we can. The agreement was designed to help us better match the expense of our inventory with the times that we're selling it. So historically, we've seen quarters where we're paying for the inventory as we build up our seasonal goods and then we are paying for that and not selling that inventory yet. This program allows us to get better payment terms with ALCC and pay them as we're selling the inventory versus on kind of our standard vendor terms. So really designed to help us keep the product flowing and align the payment of inventory to the sales.

Analyst
Eric Beder

Great. Last question. So you're a little bit -- COVID obviously messed up the flow of product a little bit. When do you believe that you will be on track where you want the inventory exactly to flow and how you originally planned that?

Executive
Keri L. Jones

So as we said, we're about three to four weeks behind last year in terms of seasonal flow. I will tell you we have very large amounts of inventory that began hitting last week over the next several