Re CWTR, things could get even uglier, it's a bad miss:
prnewswire.com
Coldwater Creek (Nasdaq: CWTR) today announced that earnings per share for its fiscal 2006 fourth quarter, ending Feb. 3, 2007, are expected to be in the range of $0.16 to $0.17. The company's previous guidance, provided on Nov. 21, 2006, had been for earnings per share in the range of $0.26 to $0.27.
"Although the strength of our first three quarters is still expected to deliver record performance in terms of full-year 2006 net sales and earnings, customer traffic was slower-than-expected across the country throughout the holiday season, which had a substantial negative impact on our fourth-quarter results," said Dennis Pence, chairman and chief executive officer for Coldwater Creek. "We began our learance sale as-planned on Dec. 24, and since that time have successfully been clearing merchandise to ensure that we end the quarter with clean and current inventory levels, while maintaining our historically strong balance sheet and cash position. Due to this increased level of clearance activity, our gross margin rate will be under plan for the quarter, which will negatively affect earnings and operating margin."
"While overall business was less-than-expected due to decreased customer traffic, the categories of fashion-knit tops, moleskin pants, jewelry and accessories were especially hard-hit," said Georgia Shonk-Simmons, president & chief merchandising officer. "At the same time, our core items in jackets, sweaters, skirts and denim continued to show relative strength for the period."
CHS is also down in AH. I don't see any news for them, so I assume it's in sympathy - that may or may not turn out to be the right reaction, but you do have to wonder if some of that missing traffic found it's way to CHS. |
