Home / Knowledge / News / Apparel/Garments / Weak performance of Coldwater merchandise offerings
Weak performance of Coldwater merchandise offerings
19
May '11
Coldwater Creek Inc announced that it completed an amendment of its existing credit facility that extends the facility maturity date three years to May 16, 2016, which includes the addition and funding of a $15 million term note. The Company also announced preliminary first quarter 2011 results.

The term note transaction generated net cash proceeds of $14.4 million for the Company subsequent to the end of the first quarter of fiscal 2011. As part of the amended credit agreement, the Company granted the lenders a security interest in the Company's Sandpoint, Idaho corporate offices and certain other assets. The amount available under the $70 million revolving facility remains unchanged; however, the Company now has a future option to request an increase in the amount of the revolving facility for an additional $15 million, which if granted would result in a total of $85 million available, exclusive of the term note.

Regarding this transaction, Jim Bell, Chief Financial Officer stated, "We have been evaluating opportunities to further strengthen our balance sheet and effectively monetize our owned real estate assets. We are pleased to have completed this transaction, which provides us additional financial flexibility as we continue the work to reposition our brand."

The Company also announced preliminary first quarter 2011 results. For the three months ended April 29, 2011, the Company currently expects:

• Net sales of approximately $180 million, reflecting a decline in comparable premium retail store sales of approximately 28% as compared to the first quarter of last year.
• Loss per share of $0.32-$0.34, compared to a profit of $0.03 last year.
• Total inventory at quarter end is expected to decline in the high-single digit range as compared to inventory at the end of the first quarter last year. Premium retail inventory per square foot is expected to be down between 7%-9%, as compared to premium retail inventory per square foot at the end of the first quarter last year.

Dennis Pence, Chairman and Chief Executive Officer stated, "During the first quarter, we experienced continued weak trends in traffic and sales as our merchandise offerings were not well received by our customers. We are in the process of repositioning our brand and view 2011 as a transitional year for Coldwater Creek. We look forward to seeing the results of our new design, development and merchandising initiatives as we move through the year."

Coldwater Creek Inc

Must ReadView All

Courtesy: Li & Fung

Textiles | On 24th Mar 2017

Li & Fung forms new supply chain partnership with PVH Corp

Li & Fung Limited, the world's leader in consumer goods design,...

Courtesy: Alizilla

Apparel/Garments | On 24th Mar 2017

Alibaba's eWTP finds first overseas base in Malaysia

In a step towards using the internet to bring small businesses around ...

Textiles | On 24th Mar 2017

BJMC to produce cotton-jute blended denim fabrics

To meet demand from the market, Bangladesh Jute Mills Corporation...

Interviews View All

Vasanth Kumar
Max Fashion India

‘Traditional high-street retailers are now willing to offer franchisees to ...

Amardeep Singh
Orient Craft

'In export markets, the trend in terms of embroidery, is towards matte...

Siddharth Biyani
Mangalam Industries Pvt Ltd

‘The manufacturing sector is improving day-by-day, becoming better in...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Lynda Kelly
Suominen Corporation

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

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

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

news category


Related Categories:
March 2017

March 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search