Coldwater Creek Inc. reported financial results for the three-month period ended August 3, 2013.
Coldwater Creek Inc. reported financial results for the three-month period ended August 3, 2013. Second Quarter of Fiscal 2013 Operating Results#
Second Quarter of Fiscal 2013 Operating Results:
Consolidated net sales were $149.7 million, compared with $163.7 million in second quarter 2013. Net sales from the retail segment were $118.6 million, compared with $129.9 million in the same period last year. Comparable premium retail sales declined 7.3 percent for the quarter. Net sales from the direct segment were $31.1 million, compared with $33.8 million in the same period last year.
Coldwater Creek Inc. reported financial results for the three-month period ended August 3, 2013. Second Quarter of Fiscal 2013 Operating Results#
Consolidated gross profit was $44.0 million, or 29.4 percent of net sales, compared with $48.5 million, or 29.6 percent of net sales, for second quarter 2012. The 20 basis point decline in gross profit margin was a result of improved occupancy leverage, offset by lower merchandise margins reflecting increased promotional activity.
Coldwater Creek Inc. reported financial results for the three-month period ended August 3, 2013. Second Quarter of Fiscal 2013 Operating Results#
Selling, general and administrative expenses (SG&A) were $62.6 million, or 41.8 percent of net sales, compared with $65.7 million, or 40.1 percent of net sales, for second quarter 2012. The improvement in SG&A was driven by lower marketing and employee-related expenses.
Coldwater Creek Inc. reported financial results for the three-month period ended August 3, 2013. Second Quarter of Fiscal 2013 Operating Results#
Net loss was $16.4 million, or $0.54 per share, and included other gain, net, of $5.6 million, or $0.18 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 second quarter 2012 net loss of $17.6 million, or $0.58 per share, which included other gain, net, of $1.3 million, or $0.04 per share, due to the change in the fair value of the derivative liability net of related issuance costs.
Coldwater Creek Inc. reported financial results for the three-month period ended August 3, 2013. Second Quarter of Fiscal 2013 Operating Results#
On an adjusted basis, excluding the gain on the derivative liability, net loss was $22.1 million, or $0.72 per share, compared with $18.8 million or $0.62 per share for second quarter 2012. As compared to previous guidance, second quarter 2013 net loss was negatively impacted by a change in the timing of revenue recognition related to the extension of the term under our current credit card agreement.
Coldwater Creek Inc. reported financial results for the three-month period ended August 3, 2013. Second Quarter of Fiscal 2013 Operating Results#
The extension was put in place to better facilitate the upcoming transition of the Company's credit card program from Chase to Alliance Data Systems. The result was $1.7 million, or $0.06 per share, of revenue shifted out of the quarter and will instead be recognized over the next four quarters.
Coldwater Creek Inc. reported financial results for the three-month period ended August 3, 2013. Second Quarter of Fiscal 2013 Operating Results#
"Sales were lower than planned in the second quarter, largely due to a deceleration in traffic during the month of July. Despite a challenging environment, we delivered bottom-line results that were in line with our guidance," said Jill Dean, President and Chief Executive Officer of Coldwater Creek.
Coldwater Creek Inc. reported financial results for the three-month period ended August 3, 2013. Second Quarter of Fiscal 2013 Operating Results#
"Our return to more consistent comparable store sales has been slower than expected; however, we know that customer engagement and driving traffic are critical to our long-term success and two recent announcements represent progress against these objectives."
Coldwater Creek Inc. reported financial results for the three-month period ended August 3, 2013. Second Quarter of Fiscal 2013 Operating Results#
Coldwater Creek