Higher-than-expected cuts in costs helped Coldwater Creek Inc. shrink its third-quarter loss and beat analysts’ expectations despite sharp declines in sales.
The Sandpoint, Idaho-based retailer posted a net loss of $1.3 million, or 1 cent a diluted share, compared with a loss of $6.2 million, or 7 cents, in 2007. Revenue declined 15.8 percent to $228.5 million from $271.2 million. Analysts had projected a loss of 8 cents a diluted share on sales of $225.3 million.
Gross margin fell to 37.7 percent of sales from 39.8 percent in the prior-year period, driven by the deleveraging of occupancy costs due to same-store sales that fell 20.5 percent. Inventory decreased about 11.7 percent for the quarter, and selling, general and administrative costs were reduced by $28.8 million, or 24.5 percent.
“With compelling opening price points and strategic promotional and marketing initiatives, we believe we have taken all the right steps and are optimistic that our product offerings will resonate with consumers in today’s economic climate,” president and chief executive officer Daniel Griesemer said.
Griesemer said he was “confident” the company’s strong balance sheet would enable it to “weather a prolonged downturn in consumer spending.”
The company had $72 million in cash at the end of the quarter, in addition to full availability under a $60 million revolving credit facility that expires in 2012. Coldwater Creek said it does not anticipate borrowing under the facility and should end fiscal 2008 with more than $75 million in cash. It finished the quarter with $72.4 million in cash and cash equivalents.
The retailer opened 19 stores in the third quarter and has subsequently opened eight more, for a total of 349 “premium,” rather than spa or outlet, stores. Fifteen stores are planned for 2009.
For the nine months, Coldwater posted a loss of $7.4 million, or 8 cents a diluted share, compared with profits of $14.5 million, or 15 cents, last year. Net sales slid 8.1 percent to $741 million from $805.9 million.
In yet another fashion show shuffle, @elleryland is moving its show in sync with the Paris couture calendar — though the brand is still keeping one foot on the city’s ready-to-wear schedule. Their runway show in January will coincide with the launch of a new strategy: designing two main collections each year instead of four, which will then be released in four drops. “As we all know, the system needs to change. We need to show sooner to give time back to artisans and designers to do what they do best — create,” said founder Kym Ellery. #wwdnews #wwdfashion (📷: @kukukuba)
@maxmara’s classic 101801 coat was the cornerstone of its pre-fall 2018 collection. The design team expanded the traditional double-breasted, kimono-sleeved style into a trapeze coat, lean belted styles and a peacoat and presented them in monochromatic looks – like the camel one pictured here. #wwdfashion #prefall18 (📷: George Chinsee)
The @cfda has shifted the dates of #NYFW, with Men’s showing on February 5 through February 7, and Women’s will directly follow, running from February 8 through 14. The preliminary schedule will be released on the CFDA’s web site in the next few days, but Mark Beckham, VP of marketing for the CFDA, revealed that @rafsimons will be back to close the men’s-specific part of the week with a show on February 7 #wwdfashion (📷: Kelly Taub)
@ferragamo is introducing a new space dedicated to the development of women’s and men’s leather good samples. The laboratory, which is created eco-friendly materials and designed to reduce the environmental impact of the manufacturing processes, will allow the company to expand its accessories offering through traditional artisanal approaches. #wwdfashion (📷: @aitorrosasphoto)
How does a “regular, degular, schmegular” girl from the Bronx, N.Y., become a Grammy-nominated artist with a certified platinum record in less than a year? Call it the @iamcardib come up. The 25-year-old has become a musical sensation, and the fashion world is taking note. “If I could describe her style I would say drama. She’s really into the dramatics,” says Cardi B’s stylist @kollincarter. See how Carter styles her bold and out there looks with the link in bio. #wwdfashion
“There is no formula. There is no guideline. I can watch Ted Talks all day, but there is no one who can advise me on exactly what it is I should be doing,” said @ronniefieg, CEO of @kith, in an interview with WWD’s @ariahughes at the brand’s new SoHo office in Manhattan. Head to WWD.com to see how Fieg went from hanging out in shoe stockrooms at 13 to building his own business. #wwdfashion (📷: @weston.wells)
@fearofgod and @maxfieldla have teamed up on a pop-up installation. The store, located in the gallery space across from Maxfield’s Melrose Ave location, is the site of the brand’s House of God pop-up in which Fear of God founder @jerrylorenzo has created a church-inspired installation. A dozen vintage church pews sit in front of an LED screen playing 90s gospel singers in an effort to re-create an environment akin to a Southern Baptist Church, Lorenzo explained. Read more about the pop-up on WWD.com #wwdfashion (📷: Jennifer Johnson)
Known for his sleek, sophisticated American glamour, Norman Norell is the subject of an upcoming exhibition at @fitnyc. “Norell: Dean of American Fashion,” which runs from February 9 through April 14, will feature approximately 100 ensembles and accessories. His best work is exemplified by the designer’s glittering “mermaid” gowns frosted with thousands of hand-sewn sequins – like the one pictured. (📷: William Helburn) #wwdfashion
For pre-fall 2018, @balmain didn’t let go of the glitz. A crystal embroidered baseball jacket priced at around $40,000 hangs in the “couture” section of the brand’s first men’s pre-collection. Sporting the words “Balmain Army” across the back, the item took around two months to make. “When it was completed, it was like Christmas, it was like, ‘It’s done, it’s exactly what I wanted,’” said Balmain’s creative director @olivier_rousteing during a tour of the collection in a Paris showroom on Monday. #wwdfashion