Coldwater Creek's Retail Sales Continue To Overtake Direct

Coldwater Creek Inc.'s net sales increased 38.3 percent to $215.3 million.

The Sandpoint, ID-based multichannel apparel merchant's net income for the three months ended April 29 increased 36.3 percent to $11.6 million, or $0.12 per diluted share, compared with net income of $8.5 million, or $0.09 per diluted share, last year.

Net sales from the retail segment increased 53.5 percent to $128.6 million in the first quarter. Retail segment net sales represented 59.7 percent of the company's total net sales in the fiscal 2006 first quarter, compared with 53.8 percent last year.

In the direct segment, first quarter net sales increased 20.7 percent to $86.7 million. Direct segment net sales represented 40.3 percent of the company's total net sales in the fiscal 2006 first quarter, compared with 46.2 percent last year.

Internet sales increased 35.3 percent to $55.5 million in the first quarter. Internet net sales represented 64.1 percent of the direct segment's net sales in the fiscal 2006 first quarter, compared with 57.1 percent last year. Internet net sales represented 25.8 percent of the company's total net sales in the fiscal 2006 first quarter, compared with 26.4 percent last year.

Catalog net sales increased 1.1 percent to $31.1 million in the first quarter. Catalog net sales represented 35.9 percent of the direct segment's net sales in the fiscal 2006 first quarter, compared with 42.9 percent last year. Catalog net sales represented 14.5 percent of the company's total net sales in the fiscal 2006 first quarter, compared with 19.8 percent last year.

Coldwater Creek also said it would restate its fiscal 2005 financial statements to correct the manner in which it accounts for non-refundable marketing fees received from its credit card issuer in conjunction with its co-branded credit card program. As a result of the restatement, net sales for fiscal 2005 will decrease by approximately $8.5 million.