Coldwater Creek estimates that a disappointing holiday season will lead to a fourth-quarter 2001 loss of $4.4 million to $4.9 million, the catalog retailer revealed yesterday.
Customer demand failed to meet the company's expectations during the season, Coldwater Creek executives said. The company said it did not expect sales to rebound until September 2002, when the fall catalog and retail season begins.
The poor fourth-quarter 2001 performance was softened by the company's efforts to reduce inventory, executives said. The company said it has inventory levels valued at $76 million to $78 million, millions lower than earlier projections that put Coldwater Creek's inventory in the $90 million range by this time.
Coldwater Creek, Sandpoint, ID, said earlier this month that it would close a distribution center at its headquarters, shut two clearance outlets and reduce its corporate staff, which will result in the layoff of about 220 employees. The cuts are expected to be complete by March 1.