Multi-channel retailer Coldwater Creek has posted a 16 per cent rise in third quarter net income to $5.6 million, up from $4.8m in the same period last year.

The Idaho-based company, which specialises in upscale women's apparel and footwear, attributed the rise to a significant shift from catalogue to retail outlet sales.

"The smaller format stores we tested in six new markets have performed above expectations, which, combined with solid performance from our retail store base, has allowed us to leverage store occupancy costs," chairman Dennis Pence said.

Retail outlet sales were up 46 per cent for the quarter to $54.3m, while catalogue and internet sales fell 8.5 per cent year-on-year to $83.8m.

The company posted total third quarter revenue of $138.2m, compared to $128.8m recorded for the same period a year ago.