Coldwater Creek shows signs of life

SANDPOINT - Coldwater Creek Inc. turned things around in a tough economic climate for the second quarter of this year.

The retailer based in Sandpoint posted a net income of $1.5 million for the three-month period ending Aug. 1, compared with a net loss of $4.9 million for the same time frame a year earlier.

"I am confident in our merchandising and creative direction for fall, which shows further progress to return our offerings and aesthetic to the eclectic and natural fashion sensibility that our customers look to us for," said Dennis Pence, chairman and chief executive officer of Coldwater Creek.

Coldwater had net sales of $253.5 million, compared with $225.2 million in the fiscal 2009 second quarter. Sales from the retail segment, which includes the company's premium retail stores, outlet stores and day spa locations, were $195.4 million versus $183.4 million in the fiscal 2009 second quarter.

Direct sales, Internet and phone, increased 39 percent to $58.1 million from $41.8 million in the same period last year.

Gross profit for the fiscal 2010 second quarter was $84.7 million, or 33.4 percent of net sales, compared with $75.7 million, or 33.6 percent of net sales, for the fiscal 2009 second quarter.

Pence said Coldwater made considerable progress toward achieving its inventory goals.

"Most encouraging is that the initiatives we implemented at the start of the year are bringing back a level of predictability and consistency to our business despite the challenges of the difficult economy," he said.

In the second half of 2010, Pence said Coldwater expects "to realize increased merchandise margins due to more conservative inventory plans, which, combined with our continued focus on expense control, position us well to meet our profitability expectations for the fall and holiday seasons."