- Coldwater Creek (CWTR) shares reverse gains and are now down 10.8% AH following a mixed Q3 in which the retailer continued its struggle in a "highly competitive" retail environment.
- The company closed 1 retail store, 1 factory store, and 1 spa in Q3, ending with 343, 36, and 7 respectively. Coldwater expects to close up to 10 more retail stores by the end of the fiscal year.
- CEO Jill Dean observed: "In response to the disappointing performance of our fall merchandise, we took swift action early in the third quarter to adjust our holiday assortment, and we experienced a meaningful improvement in full-priced selling as holiday product flowed into stores starting in mid-October. During the quarter we also implemented a cost reduction program, which is expected to generate $20-$25 million in expense savings next year."
- As of Nov. 2, cash totaled $6.8M, down from $31.3M in Oct. 2012, while inventory decreased 5.6% Y/Y (and 1.6% Y/Y per square foot) to $152.7M. The company burned $23M in operating cash in the past 3 quarters.
Coldwate Creek -10.8% AH after Q3 report; plans further store closures
Dec 11 2013, 18:31 ET