Home / Knowledge / News / Apparel/Garments / Coldwater Creek sales slip in Q2 FY'13
Coldwater Creek sales slip in Q2 FY'13
11
Sep '13
Coldwater Creek Inc. reported financial results for the three-month period ended August 3, 2013.
 
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.
 
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.
 
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. 
 
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. 
 
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. 
 
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. 
 
"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. 
 
"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


Must ReadView All

Textiles | On 19th Aug 2017

New fabric interfaces to interact with computers

As computer capabilities evolve, new fabric-based interfaces are...

Textiles | On 19th Aug 2017

Brazilian cotton prices drop in first fortnight of August

Cotton prices dropped in the Brazilian market in the first fortnight...

Apparel/Garments | On 19th Aug 2017

Target to acquire Grand Junction for faster deliveries

Target Corporation has announced that it has agreed to acquire Grand...

Interviews View All

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

'Major problem in the textile machinery manufacturing industry is the lack ...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

August 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
66.7%
No
16.7%
Skip
16.7%

Total Votes: 30

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
43.3%
No
36.7%
Skip
20.0%

Total Votes: 30

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
83.3%
No
6.7%
Skip
10.0%

Total Votes: 30

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
60.0%
No
10.0%
Skip
30.0%

Total Votes: 30


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search