In its second-largest acquisition, Amazon buys the company for $970 million.
Web sales at Coldwater Creek Inc. increased 11% to $38.5 million in the fiscal year first quarter, from $34.7 million in the same quarter last year, the company reported. The web now accounts for 34.4% of sales, up from 30.7% a year ago.
Web sales at Coldwater Creek Inc. increased 11% to $38.5 million in the fiscal year first quarter, from $34.7 million in the same quarter last year, the company reported. The company’s total sales decreased 0.7% in the quarter from $112.9 million to $112.million. Web sales now account for 34.4% of Coldwater Creek’s total sales, up from 30.7% a year ago.
Indicating the growing importance of Coldwater Creek’s multi-channel strategy, direct sales-- web site, catalog and outlet stores--represent 79% of the company’s sales vs. 92% a year ago. Sales have shifted to Coldwater Creek’s retail stores. Direct sales totaled $88.5 million in Q1 vs. $103.7 million a year ago. Web sales also are an increasingly large portion of direct sales, accounting for 43.5% of direct sales vs. 33.5% a year ago. Coldwater Creek says the shift was the result of decreased catalog circulation.
In spite of the overall flat sales, Coldwater Creek’s earnings increased. Net income for the quarter increased to $2.8 million compared with $1.4 million a year earlier.
"Our better-than-expected earnings performance for the quarter was the result of lower marketing costs, coupled with the effectiveness of our ongoing cost-control programs and the efficiencies gained from our recent consolidation of all shipping functions to our East Coast distribution center," said Georgia Shonk-Simmons, president and chief executive officer. "In addition, lower-than-expected merchandise returns also contributed to these positive first-quarter results."