Coldwater Creek reduces advertising, circulation

Share this content:

Facing declining sales and a net loss for the year, Coldwater Creek Inc. said it will reduce its national advertising by approximately 70% this year and catalog circulation by approximately 20%.

For the fourth quarter ended February 2, Coldwater Creek posted net sales totaling $345.5 million, compared to $366.6 million in the prior year. Comparable store sales declined 19.2% during the same period. Direct sales totaled $119.3 million compared to $142.3 million in the same period last year.

The company's net loss for the three-month period totaled $17 million, or $0.19 per basic and diluted share, compared with net income of $15.9 million, or $0.17 per diluted share, for the same period last year.

For the fiscal year ended February 2, net sales totaled $1.15 billion compared with $1.05 billion in 2006. Direct sales totaled $376.4 million compared with $390.4 million in 2006.

The net loss for the year totaled $2.5 million, or $0.03 per basic and diluted share, compared with net income of $55.4 million, or $0.59 per diluted share in 2006.

In order to try to turn around these numbers, Coldwater Creek said it has embarked on a series of corrective actions related to its product and customer experience. In addition to cutting back its advertising and catalog circulation, this includes trimming its SKU count by at least 20% and adjusting inventory in an effort to decrease markdowns. The company is also moderating its retail expansion in 2008 and plans to open 50 stores this year.

Loading links....

Sign up to our newsletters

Company of the Week

Since 1985, Melissa Data has helped thousands of companies clean, correct and complete contact data to better target and communicate with their customers. We offer a full spectrum of data quality solutions, including global address, phone, email, and name validation, identify verification - available for batch or real-time processes, in the Cloud or on-premise. Our service bureau provides dedupe, email/phone append and geographic/demographic append services for better targeting and insight. For direct mailers, Melissa Data offers easy-to-use address management/postal software, list hygiene services and 100s of specialty mailing lists - all with competitive pricing and excellent customer service.

Find out more here »

DMN's Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here