Web-based sales run ahead of total sales at Coldwater Creek
Web-based sales at women’s apparel retailer Coldwater Creek Inc. increased 49% in the second quarter over Q2 2004, to $38.8 million from $26 million, the company reports. Companywide sales in the second quarter increased 39% to $154.6 million from $111.2 million in 2004’s second quarter. Internet sales represented 25.1% of the company`s total net sales in the second quarter, compared with 23.3% in the fiscal 2004 second quarter.
Net income in Q2 more than doubled to $7 million from $3.3 million a year earlier.
In the first six months of the year, Internet sales grew 31% to $79.8 million from $60.9 million a year earlier. Companywide sales in the first six months increased 32% to $310.2 million from $235.7 million in the same period a year ago. Internet net sales represented 25.7% of the company`s total sales in the first six months compared with 25.8% in the comparable period last year.
Net income for the first six months increased 79% to $15.5 million from $8.7 million a year earlier.
"Strong sales at full-price, the continued success of our national retail store expansion and growth in the Internet channel have resulted in the most profitable second quarter in the company`s history," said Dennis Pence, chairman and CEO. "At the same time, our strategic shift toward having catalogs act as our primary print advertising vehicle has been effective in driving traffic to all three selling channels. The success of our e-mail marketing campaigns continues to support the growth of our Internet channel. We see further opportunity to expand this important part of the business as we build on our growing list of 2.5 million e-mail addresses."
Catalog sales in Q2 decreased 14% to $20.6 million from $24 million in the fiscal 2004 second quarter. Catalog sales represented 13.3% of the company`s total sales in the second quarter compared with 21.6% a year earlier. In the first half, catalog sales decreased 10% to $51.4 million and represented 16.6% of the company`s total sales vs. 24.2% a year earlier.
Q2 sales in full-line retail stores, resort stores and outlet stores increased 55% to $95.2 million from $61.3 million, representing 61.6% of total sales vs. 55.1% a year earlier. In the first half, store sales increased 52% to $179 and represented 57.7% of all sales compared with 50% in the same period a year ago. Coldwater Creek opened 17 full-line retail stores during the second quarter for a total of 136 full-line retail stores in operation at the end of the second quarter vs. 89 a year ago.
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