Retailers shift their ad spending from TV, radio and print ads to digital ads.
Internet sales at Coldwater Creek rose 21% for the third quarter ended Oct. 29 to $47 million from $39 million in the year-ago quarter, the retailer said today. Web sales accounted for 24.7% of total Q3 net sales, down from 25.9% a year ago.
Internet sales at Coldwater Creek rose 21% for the third quarter ended Oct. 29, to $47 million from $39 million in the year-ago quarter, the retailer said today. Web sales accounted for 62.7% of combined Internet and catalog sales, up from 55.4% a year ago, but declined to 24.7% from 25.9% as a share of total net sales.
Total Q3 net sales increased 26% to $190.1 million from $150.5 million in the year-ago quarter. Net income for the quarter increased 57% year-over-year to $27.9 million from $17.7 million. Coldwater Creek is No. 50 in the Internet Retailer Top 400 Guide to Retail Web Sites.
For the nine months ended Oct. 29, Internet sales rose 27% to $126.8 million from $99.9 million a year ago, and dipped as a share of total net sales to 25.4% from 25.9%. But web sales rose as a share of direct segment sales, including Internet and catalog sales, to 61.5% from 53.1%.
Direct segment sales rose year-over-year 7% to $74.9 million in Q3 and 10% to $206.2 million for the nine months. "The increase in direct segment net sales was due to the continued growth of our Internet channel," said chairman and CEO Dennis Pence said. "Our e-mail database now includes almost 2.6 million active addresses, which provides us with increased opportunity to market to these customers in a targeted and affordable manner. In addition, our e-mail campaigns and catalog mailings now provide a compelling way to drive retail store traffic."