Coldwater Creek generated net income of $9.4 million during the third quarter of 2004, up from the $5.6 million it earned in third quarter 2003. The company’s net sales rose from $138.2 million to $150.5 million during the same period. The quarter ended Oct. 30.
Much of the boost came from the company’s retail activities. “In keeping with our strategic shift toward a retail store-based business model, we reduced catalog circulation in the third quarter,” said chairman and CEO Dennis Pence. “Meanwhile, our Internet net sales remained virtually unchanged during the period, due to effective e-mail promotions.”
The Sandpoint, ID-based firm’s online sales remained at $39 million between quarters. Internet sales made up 55.4% of its direct-to-consumer sales during the most recent quarter, up from 46.6% a year ago. Online sales represented 25.9% of the company’s sales, compared with 28.3% in third quarter 2003.
Catalog sales mirrored a circulation drop. In third quarter 2003, the company sent out 42.7 million catalogs, but in the quarter just ended mailed only 26.4 million. Catalog sales fell by29.9%, from $44.7 million to $31.4 million between quarters. Catalog sales made up 44.6% of all direct sales during the quarter, compared with 53.4% a year ago. Catalog sales represented 20.8% of the company’s total net sales in the 2004 third quarter, compared with 32.4% a year ago.
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