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Based in Tokyo, Japan, Koyal Group is a boutique equity research house and has its foundations set in personal client advisor relationships, and despite being one of the largest equity research houses in Asia we are proud to say we maintain strong interpersonal links between our clients and... More
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  • Koyal Group Predicts Turn Around In Woman´s Clothing Retailer 0 comments
    Aug 24, 2013 2:37 PM

    Coldwater Creek is a retail store that has seen some difficulties in the past few years. But with a new CEO, The Company is mounting a comeback.

    Jul. 18, 2013 - TOKYO, Japan -- Mr. Nathan Andrews, Head of Investment Analysis, at Tokyo based equity researcher Koyal Group believes that Coldwater Creek (CWTR:US) will see strong growth in the last half of 2013. Coldwater Creek has suffered some setbacks in recent years for a variety of reasons; a decision was made to change their target demographic of women older than 50 living in households with more than $100,000 of income to younger women. They were also in the process of expanding their network of retail stores, when the global economic crisis occurred in 2008. During the recession Coldwater Creek shares lost more than 90% of their value.

    At the end of last year, Coldwater Creek appointed a new Chief Executive Officer, Ms. Jill Dean who has more than 25 years of experience in the women´s clothing sector. She has returned the focus of the company to marketing to households with high incomes and woman over 50. Senior Vice President of Mergers and Acquisitions Mr. Peter Keller at Koyal Group stated, "This demographic is an extremely important for the next ten years, the baby boomer generation is reaching 50." Ms. Dean has also decided to close 45 stores which have not been performing or have recorded losses. Late in 2012, the company successfully implements a customer loyalty program, and in only 7 months they have grown the program to over 1.5 million members.

    Koyal Group is now recommending Coldwater Creek to clients who are looking to make a long term investment and are not adverse to a small amount of risk. Currently the stock is trading at just over $2.50 a share, which is down more than 50% since January because of a report showing that earnings were below expectations. However some important factors have been overlooked, the company has been reducing its fixed operating costs and strengthening its gross margin. Mr. Peter Keller believes that as Coldwater Creek continues its re-branding, the stock will increase significantly in value.

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