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Direct and total sales drop for Coldwater Creek in Q2
But the women’s apparel retailer is busy retooling certain parts of e-commerce.
Topics: apparel retailer, business finance, Coldwater Creek, coldwater creek inc., Dennis Pence, e - commerce, e-commerce site, Q2, q2 2012, Q2 financials, Q2 sales, Q2 web sales, second quarter, web sales
Sales were down across all channels in the second quarter and Coldwater Creek Inc. continues to close stores. But even a weak financial performance won’t prevent the specialty women’s apparel retailer from investing more resources in e-commerce.
For the second quarter ended July 28, Coldwater Creek, No. 134 in the Internet Retailer Top 500 reported:
- Total sales declined year over year 9.8% to $163.7 million from $181.4 million.
- Direct sales, which include catalog and Internet, decreased 13.8% to $33.8 million from $39.2 million.
- Comparable-store sales decreased 6.5%.
- Net loss was $17.6 million compared with a net loss of $27.7 million in the second quarter of fiscal 2011.
- Direct sales accounted for 20.6% of total revenue compared with 21.6% in the prior year
Coldwater Creek continues to close stores, including four locations in the second quarter and eight stores year to date. By the end of 2013 and over a two-year period, Coldwater Creek expects to close up to 45 stores. Currently the retailer operates 355 stores.
At the same time as Coldwater Creek is closing stores, the company also is committing more resources to the web, CEO Dennis Pence told Wall Street analysts on the company’s second quarter earnings call. While not disclosing a lot of details, Coldwater Creek is in the process of redesigning its e-commerce site and mobile app. “We are on track to launch the next generation of our mobile app in October and we have redesigned our web site navigation, home page and landing page to formats that are easier to shop,” Pence told analysts.
For the first two quarters Coldwater Creek reported:
- Total sales declined year over year 7.6% to $333.6 million from $361.2 million.
- Direct sales, which include catalog and Internet, decreased 13.5% to $72.4 million from $83.7 million.
- Net loss was $41.3 million compared with a net loss of $57.7 million in the first two quarters of fiscal 2011.
- Direct sales accounted for 21.7% of total revenue compared with 23.2% in the prior year