CWTR's Board Authorized Buy-Back of $75 Million Shares
Reuters reports: Women's apparel retailer Coldwater Creek Inc (CWTR.O: Quote, Profile, Research) on Thursday forecast a surprise loss for the third quarter and the second half of the year, hurt by higher promotional costs and slowing sales.
Shares of the Sandpoint, Idaho-based company fell nearly 17 percent to $9.05 in late electronic trade, after closing at $10.87 on the Nasdaq. The shares have fallen more than 56 percent so far this year.
Many U.S. retailers, including those in the women's apparel business like Coldwater Creek, have been hurt by weak consumer spending as a result of a housing market slump and rising energy and food prices.
For the third quarter, the company forecast a loss of 11 cents to 13 cents a share. Analysts on average were expecting a profit of 13 cents a share, according to Reuters Estimates.
It forecast sales of $260 million to $265 million, about 13 percent short of analysts' average expectation.
For the fourth quarter, it expects to break even, on sales of $360 million to $365 million. Analysts expect earnings of 20 cents a share, on revenue of $425.3 million.
Coldwater Creek expects a loss of 10 cents to 12 cents a share, on sales of $620 million to $630 million, for the second half.
Coldwater Creek also said its board authorized buy back of up to $75 million shares.
Full Story: reuters.com
pcyhuang |
