• Third-quarter losses widened to $29.2m
  • Sales down 19.3% to $187.5m

US retailer Coldwarter Creek saw third-quarter net loss widen, but emphasised the results were at the "better end" of its guidance.

The US company said net losses reached $29.2m for the quarter ended 29 October, against a net loss of $10.9m in the same period of the previous year.

Sales were down 19.3% to $187.5m, while net sales from its retail segment fell to $144.1m against $174.3m. It said the decline was due to a 19.8% drop in premium retail store sales due to "continued weak traffic". Direct sales fell to $43.3m against $58.1m in the same period last year.

Chairman and CEO Dennis Pence highlighted his optimism for the coming quarter, saying that the company saw a 200 basis point improvement in merchandise margin, which shows that "our merchandise and inventories are gaining traction".

"As we begin the fourth quarter, we are pleased with the initial favourable reception to our holiday offerings, the second assortment in the evolution of our new design aesthetic and the first fully developed under our new merchandising leadership.

"During the month of November our comparable retail sales were down mid-single digits, a significant improvement compared to the 26% comparable retail sales decline for the first nine months of the year, driven by meaningful improvements in traffic, conversion, and average unit retail trends.

"Although we expect the environment for consumer spending to remain challenging during the fourth quarter, we are encouraged by the progress we are seeing from the implementation of our merchandising and design initiatives and remain confident that our strategies will lead to an improvement in our long-term operating performance," said Pence.