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 23rd Jun 2017

Textile ministry organises training workshop on GST

The ministry of textiles had organised training workshop on GST which ...

Apparel/Garments | On 23rd Jun 2017

Uware Brands into licensing agreement with Polaroid

Uware Brands has entered into a licensing agreement with Polaroid for ...

Textiles | On 23rd Jun 2017

Ralph Lauren ex-president Tiger of Sweden's new CEO

Hans-Christian Meyer, former president of Ralph Lauren Corporation,...

Interviews View All

Kamlesh Vaghela
RK Textiles

Very few machinery manufacturers have R&D units

Shiladitya K Joshi
Truetzschler India Private Limited

India ITME provides a platform to interact with our stakeholders

C Kamatchisundaram
Voltas

ITME is an occasion not only to receive new leads but also to work on...

Kerem Durdag
Biovation II LLC

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

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Madhu Jain
Madhu Jain

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

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Prathyusha Garimella
Prathyusha Garimella

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

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:
June 2017

June 2017

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

SUBSCRIBE


Browse Our Archives

GO


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