Coldwater Creek Inc. plans to slash its national advertising budget and curtail catalog mailings during fiscal 2008 in order to reduce business expenses, as a result of declining telephone and Internet orders.
It expects to spend approximately $10 million on advertising in 2008, a significant decrease from the roughly $30 million it spent on advertising during fiscal year 2007.
Coldwater Water Creek says it will mail 104 million catalogs during 2008, including 32 million for its flagship Coldwater Creek catalog. In fiscal 2007 it mailed 129 million catalogs, including 30 million for its flagship catalog. Its other catalog brands are Northcountry and Spirit.
The company plans to trim product inventories at least 20% this year in an effort to decrease future price markdowns. Its national advertising budget will be reduced approximately 70% and catalog circulation will be cut by roughly 20%.
Coldwater Creek reported $119.3 million in telephone and Internet orders during the fourth quarter of 2007, down from $142.3 million for the fourth quarter of 2007.
For the 2007 fiscal year it reported $376.4 million in direct marketing sales, compared to $390.4 million in 2006.
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