Coldwater Creek posts $33.9M loss 

Coldwater Creek Inc. posted a $33.9 million net loss in the third quarter, or 37 cents per share, compared to a $1.3 million loss or a penny per share in the year-earlier period. Net sales totaled $266.6 million compared to $228.4 million in the year-earlier period for the Sandpoint-based retailer of women’s clothing and accessories.

The net loss in the recent quarter included a $3.8 million after-tax charge, or 4 cents per share, relating to the former CEO leaving the company. That consisted of a $1.2 million cash severance charge, a $1.4 million non-cash, stock-based compensation charge and a $1.2 million non-cash, pension-related charge. Separately, a non-cash income tax charge of $26.3 million, or 29 cents per share, related to a valuation allowance against net deferred tax assets under generally accepted accounting principles (GAAP).

Excluding items, third-quarter adjusted loss on a non-GAAP basis was $3.9 million, or 4 cents per share, Coldwater said.

Net sales were $266.7 million, compared with $228.5 million in the fiscal 2008 third quarter. Sales from the retail segment, which includes the company’s premium retail stores, outlet stores, and day spa locations, were $207.3 million versus $175.4 million in the fiscal 2008 third quarter. Comparable premium store sales increased 14.4 percent in the third quarter versus the third quarter of fiscal 2008. Direct sales (phone and Internet) were $59.4 million compared with $53 million in the same period last year.

 “While we are pleased with the strength of our merchandise assortments and our increased same-store sales, our strong top line performance came at the expense of margin and increased promotional costs,” Chairman and CEO Dennis Pence said in a release Nov. 24. “We are taking steps to improve merchandise margins through changes in pricing and sourcing, while improving the effectiveness and efficiency of our advertising and promotional strategies. We believe that these changes will result in improvements in our long-term financial performance, while continuing our success in providing a strong and compelling assortment of product to our customers.”

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