A new forecast from Forrester Research credits greater online spending by Canadians, lower shipping costs and more selection for the spending increase.
Second quarter web sales at women’s apparel and accessories retailer Coldwater Creek decreased 2.3% to $27.9 million while companywide sales remained virtually flat.
Second quarter web sales at women’s apparel and accessories retailer Coldwater Creek Inc. decreased 2.3% to $27.9 million while companywide sales remained virtually flat at $92.8 million, Coldwater Creek reports. Web sales in Q2 represented 30.1% of all sales vs. 30.8% in last year’s second quarter.
For the first half web sales grew 4.9%over last year’s first half to $66.4 million vs. $63.3 million. Web sales accounted for 32.4% of companywide first half sales vs. 30.8% in last year’s first half. Total first half sales decreased 0.4% to $204.8 million.
In spite of the second-quarter decrease in web sales, the web is still displacing catalog sales at Coldwater Creek. As a proportion of direct revenue--catalog, web site and outlet stores--the web accounted for 40.7% of sales in Q2 up from 35.5% a year earlier. Ditto for first half, rising to 42.3% from 34.3% a year earlier.
In Q2, the company lost $700,000 vs. income of $1.3 million in Q2 a year ago. In the first half, the company earned $2.1 million vs. $2.7 million a year ago.
The Q2 fall in sales was the result of a later mailing of catalogs, the company said. "Although this had a negative impact on the results for the second quarter, we believe our decision to present fall merchandise closer to the time our customers are actually shopping for these items represents a sound strategic direction," said Georgia Shonk-Simmons, president and chief executive officer.