Coldwater Creek Sees Income Rise as It Lessens Catalog Focus
Coldwater Creek Inc., Sandpoint, ID, reported net income yesterday of $3.4 million for the second quarter compared with a net loss of $1.4 million last year. Net sales were up 15.1 percent.For the six-month period, net income was $8.9 million versus $500,000 last year. Net sales for the first six months increased 11.2 percent over last year.
Net sales from the direct segment, which includes the company's catalog and e-commerce businesses, decreased 10.9 percent to $49.9 million in the second quarter from $56.1 million last year. For the first six months, net sales from the direct segment decreased 14.5 percent to $117.9 million from $138 million a year ago.
"In keeping with our strategic shift toward a retail store-based business model, we reduced catalog circulation 32.3 percent in the second quarter, and catalog net sales fell 26 percent compared with the prior year," chairman/CEO Dennis Pence said in a statement. "Meanwhile, our e-commerce net sales climbed by 9.8 percent during the period [because of] effective e-mail promotions."
