Home / Knowledge / News / Apparel/Garments / Decline in gross profit margin at Coldwater Creek
Decline in gross profit margin at Coldwater Creek
02
Jun '11
Coldwater Creek Inc reported financial results for the three-month period ended April 30, 2011.

First Quarter 2011 Operating Results

• Consolidated net sales were $179.8 million, compared with $243.1 million in the fiscal 2010 first quarter. Net sales from the retail segment, which includes the Company's premium retail stores, outlet stores and day spa locations, were $135.3 million versus $176.0 million in the same period last year, primarily reflecting a decrease in comparable premium store sales of 27.5 percent. First quarter net sales from the direct segment, which includes internet, phone and mail orders, decreased 33.6 percent to $44.5 million from $67.1 million in the same period last year.
• Gross profit was $54.6 million, or 30.4 percent of net sales, compared with $90.9 million, or 37.4 percent of net sales, for the fiscal 2010 first quarter. The decline in gross profit margin was primarily due to deleveraging of our retail occupancy costs, and to a lesser extent, lower merchandise margins as a result of higher promotional activity.
• Selling, general and administrative expenses (SG&A) were $84.1 million, or 46.8 percent of net sales, compared with $86.5 million, or 35.6 percent of net sales, for the fiscal 2010 first quarter. The decrease in SG&A dollars was primarily due to lower employee related expenses, and lower other fixed and variable costs partially offset by slightly higher marketing expenses.
• Net loss was $30.0 million, or $0.32 per share, compared with a net income of $2.3 million, or $0.03 per diluted share, for the fiscal 2010 first quarter.

"Our first quarter results were in line with our revised expectations provided on May 17," stated Dennis Pence, Chairman and Chief Executive Officer of Coldwater Creek. "We remain intently focused on reinventing our brand to provide a broader and more balanced assortment that consistently offers our customer the versatility she is looking for and caters to all aspects of her lifestyle."

Balance Sheet

At April 30, 2011, cash totaled $24.0 million, as compared with $61.2 million at May 1, 2010. Subsequent to quarter end, the Company generated net cash proceeds of $14.4 million from a new term loan secured by its owned corporate headquarters building and certain other assets. Premium retail store inventory per square foot, including retail inventory in the distribution center, declined 7.9 percent as compared to the end of the first quarter last year. Total inventory decreased 8.0 percent to $158.2 million from $172.0 million at the end of the first quarter last year.

Store Openings

The Company closed two premium retail stores during the fiscal 2011 first quarter, ending the quarter with 371 premium retail stores. The Company plans to open approximately five new premium retail stores, which had previously been committed to, and close between 8 and 12 premium retail stores in fiscal 2011.

Coldwater Creek is a leading specialty retailer of women's apparel, gifts, jewelry, and accessories that was founded in 1984 and is headquartered in Sandpoint, Idaho.

Coldwater Creek Inc

Must ReadView All

Textiles | On 2nd Dec 2016

Indian currency crisis impacts global cotton market

The currency crisis in India, marked by insufficient supply of new...

Huang Wei from Fiber Raw Material Dept of Sinopec Chemical Commercial Holding speaking at the Forum

Textiles | On 2nd Dec 2016

Huge potential for nylon consumption: Experts

There is huge potential for increase in nylon consumption said...

Apparel/Garments | On 2nd Dec 2016

Aditya Birla Group to establish apparel unit in Odisha

Aditya Birla Retail and Fashion Ltd. (ABFRL) is establishing a new...

Interviews View All

Dharmendra Shah
Ozone PB Spintex Limited

‘We have made huge investments to ensure quality yarn production.’

Janak Dhamanwala & Sunil Dhamanwala
Jansun

Moving towards sustainability is also a social change

Giovanni Pizzamiglio, Paolo Crespi & Riccardo Robustelli
Epson, For.Tex & F.lli Robustelli

‘The percentage share of printing in the global textile market is pretty...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

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
December 2016

December 2016

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

SUBSCRIBE


Browse Our Archives

GO


Advanced Search