Coldwater Creek 3Q Profit Up 37 Percent
Tuesday November 22, 5:42 pm ET
Coldwater Creek Third-Quarter Earnings Jump 37 Percent to $12.4 Million on Stronger Sales
SANDPOINT, Idaho (AP) -- Upscale clothing retailer Coldwater Creek Inc. on Tuesday said third-quarter profit expanded 37 percent on stronger store and Internet sales, offset by a decline in catalog sales.
Net income for the quarter ended Oct. 29 grew to $12.4 million, or 20 cents per share, from $9.1 million, or 15 cents per share, last year. Sales rose 26 percent to $190.1 million from $150.5 million in the year-ago period.
Analysts predicted earnings of 20 cents per share on $184.6 million in sales.
Coldwater Creek said its retail segment saw sales jump 44 percent to $115.2 million, while direct sales rose 7 percent to $74.9 million and Internet sales increased 21 percent to $47 million.
The gains were offset by an 11 percent decrease in catalog sales, which have contributed less and less to the company's revenue stream as sales through other channels grow. Catalog sales made up about 15 percent of the company's total revenue, versus 21 percent a year ago.
"Better than anticipated sales activity in August and October resulted in solid increases for both net sales and net income in the third quarter," said Dennis Pence, chairman and chief executive. Sales were hurt by Hurricane Katrina and its aftermath in the first three weeks of September but recovered in the fourth, he said.
Shares of Coldwater Creek were up $1 in aftermarket activity, after closing at, to $31.25 on the Nasdaq. |
