First Quarter of Fiscal 2013 Operating Results
Consolidated net sales were $155.7 million, compared with $169.9 million in first quarter 2012. Net sales from the retail segment were $117.8 million, compared with $131.2 million in the same period last year.
Comparable premium retail sales declined 10.5 percent for the quarter. Net sales were also impacted by store closures as a result of our store optimization program. Net sales from the direct segment were $38.0 million, compared with $38.7 million in the same period last year.
Consolidated gross profit decreased $3.4 million to $51.0 million, or 32.7 percent of net sales, compared with $54.4 million, or 32.0 percent of net sales, for first quarter 2012. The 70 basis point increase in gross profit margin was primarily due to increased leverage of buying and occupancy expenses.
Selling, general and administrative expenses (SG&A) were $68.4 million, or 43.9 percent of net sales, compared with $77.5 million, or 45.6 percent of net sales, for first quarter 2012. The $9.2 million decline in SG&A was due primarily to lower expenses across all categories, with the largest declines from marketing and employee-related expenses.
Net loss was $19.4 million, or $0.63 per share, and included other gain, net, of $0.9 million, or $0.03 per share, due to the change in the fair value of the derivative liability related to the Series A Preferred Stock issued in July 2012. This compares to a net loss of $23.8 million, or $0.78 per share, for first quarter 2012.
On an adjusted basis, excluding the gain on the derivative liability, net loss was $20.3 million, or $0.66 per share.
"Our first quarter results were impacted by unseasonable weather throughout the quarter; however, we were able to more than offset softer-than-expected sales through gross margin rate expansion and disciplined expense management, delivering results consistent with the higher end of our expectations," said Jill Dean, President and Chief Executive Officer of Coldwater Creek.
"The extensive work we have done to clearly define our brand strategy and target customer has influenced our merchandise direction and assortment architecture primarily in the back half of the year, which we believe will enable us to continue to generate improvements in our operating performance in fiscal 2013."
At May 4, 2013, cash totaled $10.9 million, as compared with $23.0 million at April 28, 2012. There were $15 million borrowings outstanding under the Company's revolving line of credit as of May 4, 2013, similar to last year.
Total inventory decreased 0.9 percent to $126.5 million from $127.7 million at the end of the first quarter last year. Inventory per square foot, which includes inventory in our retail storesand retail inventory in the distribution center, increased approximately 6.7 percent as compared to the end of the first quarter last year.
Apparel/Garments | On 25th Feb 2017
Gildan Activewear, which recently acquired US fashion brand American...
Apparel/Garments | On 25th Feb 2017
Kolon Sport, an outdoor gear and clothing brand of Korea based Kolon...
Everflow Petrofils Ltd
‘An innovative technology which India needs desperately is the...
Setting up a brand for online selling is easy, but running the brand is not
‘France had a reputation of being big in new ideas, but poor in marketing...
Bombay Textile Research Association
Bombay Textile Research Association (BTRA) is a leading name in textile...
Nature Works LLC
Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...
Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...