• Q4 net loss of US$12.8m, versus $37m
  • Net sales down 11% to $224.4m
  • CEO “confident” that turnaround strategy is working

Women’s wear retailer Coldwater Creek narrowed its fourth quarter loss despite a double-digit sales decline, thanks to improving merchandise margins.

The company said retail sales had fallen 7.1% to $173.5m in the three months to 28 January, with comparable store sales down 11.4%.

For the full year, the retailer posted a net loss of $99.7m, more than double fiscal 2010’s loss of $44.1m, on a 21.2% decline in net sales to $773m.

“Our fourth quarter results reflect continued improvements in our merchandise margins, which increased 570 basis points year-over-year, and overall inventory levels which were down materially versus last year,” said Dennis Pence, Coldwater Creek chairman and CEO.

“Our progress thus far gives us confidence that the turnaround strategies we have implemented are the right ones for our brand.”