Coldwater Creek’s ’04 online sales grow 9.4% as total sales are up 13.8%

Internet-based sales at women’s apparel and accessories retailer Coldwater Creek Inc. increased 9.4% last year to $162.2 million from $148.3 million in 2003, the company reports. Its fiscal year ended Jan. 31. Internet sales represented 27.5% of the company's total sales in fiscal 2004, compared with 28.6% in fiscal 2003.

Total sales in 2004 reached $590.3 million, up 13.8% from $518.8 million a year ago.

Catalog sales in 2004 decreased 25% to $131.9 million from $175.9 million in fiscal 2003. Catalog sales represented 22.3% of the company's 2004 sales, compared with 33.9% in 2003.

Internet and catalog sales’ shifting percentages of total sales represents Coldwater Creek’s focus on building multiple channels anchored by a chain. Store sales in 2004 increased 52.2% to $296.2 million from $194.6 million in 2003. Store sales represented 50.2% of total sales in 2004, compared with 37.5% in 2003.

The company operated 114 full-line retail stores at the end of 2004, compared with 66 a year earlier.

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“We are especially pleased with the sales growth of our Internet channel during the fourth quarter," said Dennis Pence, chairman and CEO. "As Direct Segment customers shift to this channel, we will continue to primarily use catalogs as our most effective advertising vehicle to promote the brand and drive traffic to both retail stores and the Internet."

Fourth-quarter Internet sales increased 25.5% to $62.3 million from $49.7 million in Q4 2003. Internet sales represented 30.5% of the company's total sales in Q4 compared with 29.4% in Q4 2003.

Catalog sales decreased 17.6% to $43.5 million in Q4 from $52.8 million ea year earlier. Catalog sales represented 21.3% of total sales in Q4 compared with 31.3% in Q4 2003.

Q4 store sales were up 48.1% to $98.3 million from $66.4 million in Q4 2003.

Total sales in Q4 reached $204.1 million, up 19% from $168.8 million a year ago.

Net income for the year increased 137.2% to $29.1 million from $12.3 million a year ago. Q4 net income increased 77.8% to $11.4 million from $6.4 million a year earlier.