Coldwater Creek turns in a lukewarm web sales performance
The Internet channel grew, but only modestly for Coldwater Creek Inc. in the third quarter.
In Q3, web sales increased by 4.4% to $62.1 million from $59.5 million in the prior year. At the same time Coldwater Creek, No. 46 in the Internet Retailer Top 500 Guide, reported a net loss of $6.2 million on sales of $271.1 million, compared with net income of $15.9 million on sales of $256.4 million in Q3 of 2006. Comparable store sales decreased 13.6% for the three-month period ended Nov. 3, 2007, compared with a 9.9% increase in the prior-year period.
“While we are disappointed with our third quarter results, we are pleased that we were able to exceed our previous guidance as a result of slightly higher than anticipated net sales and the effectiveness of our cost control measures,” says CEO Dan Griesemer. “In addition, a tight focus on inventory management allowed the company to end the quarter with a 10% reduction in retail inventory on a per square footage basis.”
For the first nine months of the year, web sales totaled $182.7 million.
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