SEGMENT REPORTING

9 Months Ended

Oct. 27, 2012

SEGMENT REPORTING

SEGMENT REPORTING

NOTE 14 — SEGMENT REPORTING

We operate in the retail apparel industry in which we primarily design, source and sell women’s apparel catering to customers generally ranging in age from 45 to 60 who are typically part of a segment of the female baby boomer demographic.  We have identified two operating segments (Christopher & Banks and C.J. Banks) as defined by ASC 820 “Disclosures about Segments of an Enterprise and Related Information.” Our Christopher & Banks and C.J. Banks operating segments have been aggregated into one reportable segment based on the similar nature of products sold, methods of sourcing, merchandising and distribution processes involved, target customers and economic characteristics of the two operating segments.

In the following table, the “Christopher & Banks/C.J. Banks” reportable segment includes activity generated by our Christopher & Banks and C.J. Banks operations.  The “Corporate/Administrative” column, which primarily represents operating activity at our corporate office and distribution center facility, is presented to allow for reconciliation of segment-level net sales, operating income (loss) and total assets to our consolidated net sales, operating income (loss) and total assets.  Segment operating income (loss) includes only net sales, merchandise gross margin and direct store expenses with no allocation of corporate overhead.

For the thirty-nine weeks ended October 27, 2012, the Company recorded a net benefit of approximately $5.2 million related to restructuring and impairment of which $0.1 million related to store-level asset impairment charges included in the operating loss for the Christopher & Banks/C.J. Banks segment.  In connection with our restructuring initiative announced in the third quarter of the transition period, we recorded $11.4 million of store-level, non-cash asset impairment charges.

Segment Reporting (in thousands):

	Christopher & Banks/			Corporate/
	C.J. Banks			Administrative			Consolidated
Thirteen Weeks Ended October 27, 2012
Net sales	$	117,263		$	—		$	117,263
Operating income (loss)	16,260			(12,644		)	3,616
Total assets	97,037			47,963			145,000
Thirteen Weeks Ended November 26, 2011
Net sales	$	123,896		$	—		$	123,896
Operating loss	(13,917		)	(14,308		)	(28,225		)
Total assets	107,599			97,195			204,794

Segment Reporting (in thousands):

	Christopher & Banks/		Corporate/
	C.J. Banks		Administrative			Consolidated
Thirty-nine Weeks Ended October 27, 2012
Net sales	$	314,321	$	—		$	314,321
Operating income (loss)	23,266		(35,215		)	(11,949		)
Total assets	97,037		47,963			145,000
Thirty-nine Weeks Ended November 26, 2011
Net sales	$	343,957	$	—		$	343,957
Operating income (loss)	1,460		(40,638		)	(39,178		)
Total assets	107,599		97,195			204,794