US: Coldwater Creek swings to full-year loss
Women's wear retailer Coldwater Creek said net loss for the year was $2.5m, compared with net income of $55.4m in 2006, saying it would look to reduce advertising and catalogue spend next term.
Net sales were $1.15bn for the year, versus $1.05bn in 2006, and selling, general and administrative expenses for 2007 were $460.9m, or 40% of net sales.
Fourth quarter net sales were $345.5m, compared to $366.6m in Q4 2006, due to mid single-digit percent decrease in comparable retail and lower average price per transaction due to clearance sales, the company said.
Net loss for the three-month period was $17m, compared with net income of $15.9m for the prior year quarter.
"Although our fourth quarter results were in-line with our revised guidance, we are clearly not satisfied with our performance," said Daniel Griesemer, chief executive officer and president of Coldwater Creek. "In fiscal 2008, we intend to focus our strategic attention on our product assortment and ensuring an exceptional customer experience across the brand. We believe that through discipline and execution on these two key aspects of our business, we will succeed in restoring our regular price heritage and improving margins."
The company opened 12 new stores during the three-month period ended 2 February, bringing its store count at the end of the fiscal year to 306 stores. The company said it anticipates opening approximately 50 new stores in fiscal 2008.
Coldwater Creek expects sales between $1,047 and $1,125 during fiscal 2008 reflecting these openings.
In addition, the company plans to spend approximately $10m on national brand advertising in fiscal 2008 and expects to mail approximately 104m catalogs, of which, approximately 32m will be the Coldwater Creek Catalogue. This compares with approximately $30m in 2007 on national brand advertising and approximately 129m catalogues mailed in fiscal 2007, of which, approximately 30m were associated with the retail store-focused Coldwater Creek Catalogue.
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