US: Coldwater Creek posts wider Q4 loss
By Katie Smith | 14 March 2013
- Q4 loss widens to $20m
- Sales down 1.6% to $220.8m
- CEO forecasts Q1 loss
Women's wear retailer Coldwater Creek has seen its fourth-quarter losses widen due to weaker sales and one-off costs.
Net loss reached US$20m for the quarter ending 2 February, compared to a loss of $12.8m the same period last year. The company said the results include a $4m loss incurred in the extra trading week of 2012 and a $1.7m charge related to the promotion of former chief merchandising officer Jill Dean to CEO.
Net sales edged down 1.6% to $220.8m from $224.4m the prior year, while comparable store sales were up 2.7%. The company attributed the decline to the closure of stores. Gross profit fell to 29.1% during the quarter, from 32.6% last year.
However Dean said: "Fiscal 2012 was a pivotal year for Coldwater Creek as we began to see the positive impact of the significant changes we have made throughout our organisation. Importantly, our product offering is resonating with our customers.
"In addition, we have created a compelling loyalty programme, improved our inventory management, built talent within our organisation and continued to execute on our store optimisation programme. This was particularly apparent in our financial performance in the second half of the year as we achieved two consecutive quarters of comparable premium store sales growth."
Looking forward, the company expects to post a loss of $0.60-$0.80 per share and comparable retail store sales to be down in the low single digits. However, gross margin is likely to improve 100-200 basis points.
"As we move into fiscal 2013, we are focused on building our brand and enhancing our customer experience across all of our channels, consistently delivering trend-right apparel and accessories, driving traffic, and rigorously managing our inventory, which we believe will enable us to continue to generate improvements in our financial performance."
Sectors: Apparel, Finance, Retail
Companies: Coldwater Creek
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