CEO Roland Smith will retire and Troy Rice will oversee e-commerce as Office Depot’s new chief operating officer.
While Coldwater Creek’s net sales in the first quarter increased 8% to $124.5 million from $115.2 million a year ago, Internet-based net sales decreased 2.8% and catalog sales went down 28%.
In its push to become a retail chain, Coldwater Creek Inc. is experiencing reductions in Internet and catalog sales while attaining big gains in store sales, the company reported today.
While net sales in the first quarter increased 8% to $124.5 million from $115.2 million a year ago, Internet-based net sales decreased 2.8% to $34.9 million from $35.9 million, the company reported. Web-based sales represented 28.1% of the company`s total sales in the quarter compared with 31.2% a year ago. Catalog sales decreased 28.1% to $33 million from $45.9 million, representing 26.5% of the company`s total sales in the first quarter compared with 39.9% a year ago.
Net sales from the Retail Segment, which includes the company`s full-line retail stores, resort stores and outlet stores, increased 69.5% to $56.5 million from $33.3 million in 2003’s first quarter. Retail Segment sales represented 45.4% of the company`s total sales in the first quarter compared with 28.9% a year ago. The company expanded store square footage 42%.
"Our strategic shift from catalogs to a retail store model resulted in higher sales and increased net income during the first quarter," said Dennis Pence, chairman and chief executive officer. "Our retail store performance increased our ability to leverage store occupancy costs, which, coupled with improved merchandise margins, delivered higher net income."
Net income for the quarter increased 185% to $5.5 million from $1.9 million a year ago.
The company operated 71 full-line retail stores at the end of the first quarter compared with 44 at the end of 2003’s first quarter. Coldwater Creek plans to open 45 retail stores during 2004, an increase of over 68% from the 66 stores open at the end of fiscal 2003.