Cataloger Coldwater Creek, Sandpoint, ID, had a net sales increase of 31.8%, from $246.7 million to $325.2 million, for the year ended Feb. 27. The company’s net income was $10.7 million, down 8.9% from $11.7 during the year. In the fourth quarter, net sales grew 9.2% to $89.6 million from $82.1 million in fourth-quarter 1997. Net income was $4.9 million for both the fourth-quarter 1998 and fourth-quarter 1997.
“The performance of our core catalog, Northcountry, remained strong, and, to a certain extent, counterbalanced the previously announced shortfalls experienced in the Spirit of the West catalog,” said Coldwater Creek president and CEO Dennis Pence in a statement. In addition, our results for the Milepost 4 catalog were also weaker than expected. Finally, our new Bed & Bath catalog has shown great promise, and is well positioned for future expansion.”
While the total number of catalogs mailed increased from 113.7 million in 1997 to 153.1 million in 1998, there was a drop off in fourth-quarter (December-February) mailings. For the fourth quarter, the company mailed 24.8 million catalogs in 1998, compared with 34.3 million in 1997. The company is evaluating proposals it has received from parties interested in purchasing its Milepost Four men’s catalog and expects to reach a decision during the first quarter of fiscal 1999.
Improvements and upgrades to operations during fiscal 1999 include the expansion of its customer service and order fulfillment capabilities and an increase in the number of products available on the company’s Web site (http://www.coldwater-creek.com).
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