• Net losses narrowed to $17.6m
  • Sales fell 9.7% to $163.7m
  • Retail sales declined 8.6% to $129.9m  

US women's wear retailer Coldwater Creek has seen its second-quarter net losses narrow thanks to the "ongoing success" of its merchandising and inventory management strategies offset falling sales.

Net losses narrowed to US$17.6m over the quarter ended 28 July, against a loss of $27.7m in the same period of the prior year.

Net sales fell 9.7% to US$163.7m. Retail sales declined 8.6% to $129.9m as comparable stores declined 6.5%. The company said sales were also impacted by 12 net store closures over the year.

"During the second quarter we significantly narrowed our operating losses reflecting the ongoing success of our new merchandising, inventory management and real estate optimisation strategies, leading to a 465 basis point improvement in merchandise margin and a $3.2m improvement in our gross profit as compared to the second quarter last year, said chairman and CEO Dennis Pence.

"Our comparable store sales results were in line with our expectations as we made the strategic decision to significantly reduce our promotional activity primarily in the month of June."