Northcountry Crimps Coldwater Creek’s Income
Sandpoint, ID–Blaming lower-than-anticipated response to the apparel in its Northcountry fall catalog and a tough economy, Coldwater Creek (Nasdaq: CWTR) posted a 77% plummet in third-quarter net income, to $1.6 million for the three months ended Dec. 1. For the third quarter of fiscal 2000, the cataloger/retailer had netted $7.1 million. Total third-quarter net sales increased 4%, however, to $141.7 million from $136.6 million last year.
Breaking it down by channel, sales from Coldwater’s catalogs and Websites decreased less than 1%, to $124.6 million from $125.6 million last year. But Web sales alone rose nearly 27%, to $45.3 million from $35.8 million. Net sales from its retail stores totaled $17.1 million, compared with $11.0 million last year. The gains were due to new store openings.
Sales and Earnings Down at Lillian Vernon Rye, NY—A cut in circulation led to a 16% decline in third-quarter sales for multititle gifts and home products cataloger Lillian Vernon Corp. (Amex: LVC). For the three months ended Nov. 24, sales were $87.0 million, compared with $104.1 million a year ago. More troubling, net income fell 49%, to $2.6 million from $5.1 million. The cataloger mailed fewer books because of the recession and the effects of Sept. 11. Additionally, Lillian Vernon mailed its November catalogs later in the quarter compared with last year. The company hopes that some of the revenue will therefore shift from the third quarter to the fourth quarter.