Coldwater Creek Inc. posted nearly $28 million in second-quarter losses, but chairman and chief executive officer Dennis Pence said the closure of up to 45 doors as well as a new design direction would help return the firm to profitability.
“We took action early in the quarter on our slower-moving styles and ended the quarter with inventory per square foot down 16 percent,” Pence told analysts on a conference call. “We continue to tightly manage our expenses and ended the quarter with [selling, general and administrative expenses] down in excess of $12 million compared to a year ago.”
Losses tallied $27.7 million, or 30 cents a share, and compared with profits of $1.5 million, or 2 cents, a year earlier. The quarter’s losses were extended by $2.4 million, or 3 cents a share, by a noncash asset impairment related to 18 underperforming stores.
Sales for the quarter ended July 30 sank 28.4 percent to $181.4 million from $253.5 million. The Sandpoint, Idaho, firm operates 366 full-priced stores, 39 outlets and nine spas.
Coldwater said it would close 35 to 45 of its stores over the next two years. Collectively, these stores generated sales of about $45 million to $55 million over the past 12 months. Their closure is expected to lead to annual expense reductions of $15 million to $20 million.
Coldwater’s new design vision is in stores now with the fall line, which is built on three strategies — driving color, print and pattern into proven key items, balancing the casual and career offerings and a pant assortment with three fits.
“The first half of 2011 has indeed been a challenging period for our company and we recognize that we have lost market share during our transition,” Pence said.
“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