A shift in the timing of catalog mailings helped lead to flat second-quarter sales for Coldwater Creek Inc.
The Sandpoint, ID cataloger reported sales $92.8 million–exactly the same as the same period last year.
In addition, the firm reported net loss of $700,000, compared with $1.3 million during the same period in 2001.
The gains realized from a 3.8% decrease in catalog volume–1.2 million pieces–were offset by costs caused by an aggressive retail expansion.
Direct sales shrank by 14.9% to $68.6 million. However, retail sales doubled to $24.2 million thanks to the addition of 23 stores.
The firm attributed the direct sales decline, in part, to a shift in the timing of its fall catalog mailings.
“Although this had a negative impact on the results for the second quarter, we believe our decision to present fall merchandise closer to the time our customers are actually shopping for these items represents a sound strategic direction,” said CEO Georgia Shonk-Simmons in a statement.
E-commerce sales fell by 2.3% to $28.9 million during the quarter. But they have risen by 4.9% to $66.4 million for the entire year to date. The category now represents 40.7% of the direct segment’s sales, compared with 35.5% last year.
Coldwater Creek includes catalog, e-commerce and outlet sales in its direct segment.
Overall sales fell by .4% to $204.8 million. Net income totaled $2.1 million, compared with $2.7 million last year.
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