Decreased store traffic and lower direct channel sales shrunk Coldwater Creek Inc.’s second-quarter profits by 63.9 percent, but the women’s clothing retailer still managed to beat analysts’ earnings estimates.
For the quarter ended Aug. 2, the Sandpoint, Idaho-based company reported net income of $3.1 million, or 3 cents a share, compared with earnings of $8.7 million, or 9 cents a share, for the 2007 period. Analysts anticipated earnings per share of 1 cent on revenues of $242.5 million.
Net sales fell 4.8 percent to $241.4 million from $253.5 million a year ago as direct sales dropped to $52.1 million from $75.8 million. Comparable-store sales dropped 13.7 percent for the quarter.
Gross margin declined to 39.6 percent of sales from 43.5 percent in the year-ago quarter.
“We continue to effectively focus on improving our product and our customer experience and achieving significant cost savings,” said president and chief executive officer Daniel Griesemer. “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.
“We remain keenly focused on our strategic initiatives, yet cautious about the outlook for the remainder of fiscal 2008, given the increasingly challenging macroenvironment,” he said.
For the six-month period, the retailer reported a net loss of $6.1 million, or 7 cents a share, compared with a profit of $20.7 million, or 22 cents a share, in last year’s first half. Net sales dipped 4.2 percent to $512.5 million from $534.8 million.
The company maintained its guidance for the third and fourth quarters, but revised full-year estimates upward because of the relative strength of its second-quarter performance. Year-end earnings are projected to range from a loss of 1 cent a share to a profit of 10 cents a share, and revenues are expected within a range of $1.11 billion to $1.15 billion.
For the full year, analysts are looking for a profit of 2 cents a share on sales of $1.15 billion.
The company concluded the second quarter with 322 stores. Another 33 to 38 store openings are planned for the fiscal year.
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast