Christopher & Banks Corporation (NYSE:CBK) stock took a plunge on Tuesday follow its CEO departing and poor sales.
Christopher & Banks Corporation President and CEO LuAnn Via is leaving the company today. She is being replaced by Joel Waller. Waller will serve as intermin CEO as CBK searches for a new permanent replacement.
Christopher & Banks Corporation is immediately starting a search to find a permanent replacement for LuAnn Via. The specialty retailer will be going through the process with the help of a national search firm.
“We thank LuAnn for her service and contributions as President and CEO during these challenging times, and wish her well in her future endeavors,” Kent Kleeberger, CBK’s Baord Chair, said in a statement. “LuAnn has laid an excellent foundation for future growth and was instrumental in upgrading our assortments, talent, technology and ecommerce platforms.”
Christopher & Banks Corporation also updated its guidance for the fourth quarter of 2016 on Tuesday. The company says that “lower traffic, ongoing headwinds in women’s apparel and weather” negatively affected its sales for the quarter.
Christopher & Banks Corporation says that the negative impact on its sales will have its revenue for the fourth quarter of 2016 falling between $85 million and $86 million. This is a far cry from the $95.24 million in revenue that Wall Street is expecting for the fourth quarter of the year.
Christopher & Banks Corporation also notes that it expects a net loss of $16 million to $17 million for the fourth quarter of the year. However, it says it expects cash, cash equivalents and investments to be $30 million for the quarter. This is close to the low end of its previous guidance.
CBK stock was down 33% as of Tuesday afternoon.