Coldwater Creek Inc., Sandpoint, ID, late Wednesday reported financial results for the fiscal 2001 second quarter that ended Sept. 1.
Net sales for the quarter rose 7.6 percent to $92.8 million from $86.3 million in the fiscal 2000 second quarter that ended Aug. 26, 2000. Net income totaled $1.3 million for the quarter, down from $1.8 million the year earlier.
Gross profit totaled $39.3 million, or 42.3 percent of net sales, compared with $39.5 million, or 45.8 percent of net sales, the year before. The lower gross profit margin for the fiscal 2001 second quarter was attributed mainly to continued clearance activity.
Selling, general and administrative expenses in the quarter were $37.3 million, or 40.1 percent of net sales, compared with $36.9 million, or 42.7 percent of net sales, last year. The improved SG&A rate this year was attributed primarily to a previously announced reduction in the company's catalog prospecting mail plan and, to a lesser extent, continued cost-containment measures.
Net sales from the direct channel, which includes the company's catalog and Internet business, rose 1.1 percent to $81.1 million from $80.2 million. Internet sales in the quarter increased 36 percent to $28.7 million from $21.1 million last year. This represented 30.9 percent of total net sales, compared with 24.4 percent the year before.