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Coldwater Creek exceeds guidance with EPS of $0.03
28 Aug '08
5 min read
• Gross profit for the first half of 2008 was $188.4 million, or 36.8 percent of net sales, compared with $238.6 million, or 44.6 percent of net sales, in the same period last year.
• Selling, general and administrative expenses for the first half of 2008 were $196.3 million, or 38.3 percent of net sales, compared with $208.8 million, or 39.1 percent of net sales, in the first half of 2007.
• Net loss for the six months ended August 2, 2008 was $6.1 million, or $0.07 per basic and diluted share, compared with net income of $20.7 million, or $0.22 per diluted share, in the comparable period last year. First half 2008 results include a non-cash charge of $0.9 million after-tax, or $0.01 per diluted share, related to the impairment of certain Coldwater Creek day spa locations.
"Despite the challenges in the external environment, we are pleased that our second quarter operating results exceeded our expectations," stated Daniel Griesemer, president and chief executive officer of Coldwater Creek. "We continue to effectively focus on improving our product and our customer experience and achieving significant cost savings. With strong inventory management and a refined product focus, we believe that we are well-positioned as we enter the important fall and holiday seasons."
Mr. Griesemer continued, "I am proud of our recent accomplishments, in particular our fall collection and our new shop concept. We remain keenly focused on our strategic initiatives, yet cautious about the outlook for the remainder of fiscal 2008 given the increasingly challenging macro environment."
Store Openings
The Company opened 7 new premium retail stores during the three-month period ended August 2, 2008, bringing its store count at the end of the second quarter to 322 stores. The Company plans total store openings of 40 to 45 new stores for fiscal 2008. The Company has no plans to open additional day spa locations.
Liquidity
At the end of the second quarter, the company had $89.2 million in cash, $110.1 million in working capital and no borrowings under its bank facility. This compares to $62.5 million in cash and $115.8 million in working capital at the end of fiscal 2007.
2008 Guidance
The Company is revising its full-year 2008 guidance to reflect the better- than-anticipated second quarter financial performance, but maintaining previously issued sales and earnings per share guidance for the third and fourth quarters of fiscal 2008.
• Selling, general and administrative expenses for the first half of 2008 were $196.3 million, or 38.3 percent of net sales, compared with $208.8 million, or 39.1 percent of net sales, in the first half of 2007.
• Net loss for the six months ended August 2, 2008 was $6.1 million, or $0.07 per basic and diluted share, compared with net income of $20.7 million, or $0.22 per diluted share, in the comparable period last year. First half 2008 results include a non-cash charge of $0.9 million after-tax, or $0.01 per diluted share, related to the impairment of certain Coldwater Creek day spa locations.
"Despite the challenges in the external environment, we are pleased that our second quarter operating results exceeded our expectations," stated Daniel Griesemer, president and chief executive officer of Coldwater Creek. "We continue to effectively focus on improving our product and our customer experience and achieving significant cost savings. With strong inventory management and a refined product focus, we believe that we are well-positioned as we enter the important fall and holiday seasons."
Mr. Griesemer continued, "I am proud of our recent accomplishments, in particular our fall collection and our new shop concept. We remain keenly focused on our strategic initiatives, yet cautious about the outlook for the remainder of fiscal 2008 given the increasingly challenging macro environment."
Store Openings
The Company opened 7 new premium retail stores during the three-month period ended August 2, 2008, bringing its store count at the end of the second quarter to 322 stores. The Company plans total store openings of 40 to 45 new stores for fiscal 2008. The Company has no plans to open additional day spa locations.
Liquidity
At the end of the second quarter, the company had $89.2 million in cash, $110.1 million in working capital and no borrowings under its bank facility. This compares to $62.5 million in cash and $115.8 million in working capital at the end of fiscal 2007.
2008 Guidance
The Company is revising its full-year 2008 guidance to reflect the better- than-anticipated second quarter financial performance, but maintaining previously issued sales and earnings per share guidance for the third and fourth quarters of fiscal 2008.
Coldwater Creek Inc
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