Coldwater Creek Inc. (Sandpoint, Idaho) has announced an 8.4 percent increase in net sales for its first quarter of fiscal 2003.
Net sales from the company's retail segment, which includes the company's 44 full-line retail stores, resort stores and outlet stores, increased 37.3 percent in the period ending May 3, 2003.
“Our first-quarter revenue and earnings results were better than anticipated due to favorable customer response across all channels in April, and solid retail store performance throughout the quarter,” said chairman and ceo Dennis Pence. “In addition, merchandise margins at the store level improved significantly, and the new stores we opened near the end of the period performed above plan.”
“Our focused store assortment gave us a fresh, bright look for spring, and our national magazine advertising and window banners were tightly coordinated to catch the customer's eye,” said president and cmo Georgia Shonk-Simmons. “Color and novelty continued to be the big merchandising story for the season, with strong response to both solids and prints. We also had continued growth in our sportswear, crop pant and denim business during the quarter.”
During the quarter, the company — which also has strong Internet and catalog operations for its women's apparel, jewelry, footwear, gift items and accessories — began classifying its outlet store business and the revenue generated from phone and Internet orders originating at its retail stores as components of its retail segment. The company made these reclassifications to reflect the manner in which the company's segments are currently managed. Previously, the company's outlet store business and the revenue generated from phone and Internet orders originating at the company's retail stores were classified as components of its direct segment.
Following the reclassification, net sales from the direct segment, which encompasses the company's catalog and e-commerce businesses, decreased 0.1 percent. Direct segment net sales represented 71.1 percent of the company's total net sales in the fiscal 2003 first quarter, compared with 77.1 percent the year before.
The company plans to open 23 full-line retail stores in fiscal 2003 (including the three stores opened during the fiscal 2003 first quarter).