Coldwater Creek Inc. generated $318.4 million in fourth-quarter 2009 sales, compared with $283.2 million in fourth quarter 2008. Direct sales (including phone and Internet) were $97.3 million, up from $83.5 million in fourth quarter 2008. The retail channel pulled in $221 million versus $199.7 million in the year-ago fourth quarter.
The company took a net loss for the most recent fourth quarter of $9.7 million, compared with a net loss of $18.6 million a year ago.
Gross profit for the fiscal 2009 fourth quarter was $90.3 million, or 28.4% of sales, compared with $76.0 million, or 26.8% of net sales, for the fiscal 2008 fourth quarter. Fourth quarter 2009 selling, general and administrative expenses were $105.2 million, or 33% percent of net sales, compared with $110.3 million, or 38.9% of net sales, a year earlier.
According to the company, the drop-off in expenses was driven by lower employee costs, which were partially offset by higher marketing expense compared with the fourth quarter if last year.
"Our fourth quarter results were significantly ahead of the prior year as we began to see an improvement in our comparable store sales and direct revenue, as well as a modest expansion in merchandise margin,” chairman and CEO Dennis Pence said in a statement.
For the full year, Coldwater Creek racked up $1.04 billion in net sales, up from $1.02 billion in 2008. Sales from the retail segment amounted to $782.4 million for 2009, versus $751.4 million in 2008. Direct sales (phone and Internet) were $256.2 million, compared with $272.9 million a year earlier.
The company took a net loss of $56.1 million, compared with a net loss of $26 million in 2008. The 2009 results include a $25.3 million non-cash income tax charge.
Gross profit for fiscal 2009 was $334.3 million, or 32.2%, compared with $350.6 million, or 34.2% in fiscal 2008. The company attributed the decline in gross profit to lower merchandise margins resulting from increased promotional activity and lower initial markups.
Selling, general and administrative expenses for fiscal 2009 were $378.9 million, or 36.5% of net sales, compared with $395.3 million, or 38.6% of net sales, for fiscal 2008. The decrease in selling, general and administrative expenses of approximately $16.5 million was primarily related to lower employee costs and reduced marketing expenses.
The Bean-Counter’s Take: It’s good to see marketing expenses up for the year. It shows Coldwater Creek believes now is the time to start capturing new customers. Call it a leading, and heartening, economic indicator. The increase in margin during the fourth quarter shows the company is moving toward the right customer mix as it increases its promotional activities, too.
