Coldwater Creek’s web sales slip while total sales rise

Web-based sales at Sandpoint, ID-based Coldwater Creek Inc. decreased 7.3% in the first six months of the year vs. last year’s first six months, to $59.6 million from $64.3 million, the company reported today. Companywide sales in the first six months increased 6.8% to $211.9 million from $198.4 million in the fiscal 2002 first six months.

For the second quarter, web sales were down 16.1% to $23.6 million vs. Q2 last year. Companywide sales increased 4.9% to $96.7 million from $92.1 million in 2002’s second quarter.

For the first half, the web accounted for 28.1% of all sales vs. 32.4% a year ago. In Q2, the web was 24.5% of all sales vs. 30.6% a year ago.

Web sales’ decline follows a decline in Coldwater Creek’s catalog sales, which were down 4% in the first half to $78.4 million and 9.4% in Q2 to $35.8 million.

"Direct sales showed a decrease of about 12 percent, against a planned catalog circulation decrease of more than 23 percent," said Dennis Pence, chairman and CEO. "The strategic decision to mail fewer catalogs in the second quarter, which traditionally has been our slowest selling period, resulted in a decrease in SG&A expenses compared with the prior year."

First half net sales from the retail segment, which includes the company`s 48 full-line retail stores, resort stores and outlet stores, increased 40.9% to $73.9 million from $52.5 million a year earlier. Q2 net sales from the retail segment increased 44% to $40.6 million from $28.2 million a year earlier. Retail accounted for 34.9% of first half sales vs. 26.4% a year ago. The company operated 35 stores a year ago and plans to open 25 this year.