Coldwater Clicks with Sales, Income Gains
Better-than-anticipated sales in August and October resulted in solid top- and bottom-line increases for Sandpoint, ID-based Coldwater Creek (Nasdaq: CWTR).
For the three months ended Oct. 29, the women’s apparel merchant posted net income of $12.4 million on sales of $190.1 million. For the third quarter of last year, Coldwater had netted $9.1 million on sales of $150.5 million.
Retail sales increased 44%, to $115.2 million from $80.1 million. Internet sales grew 21%, to $47.0 million from $39.0 million. And catalog sales decreased 11%, to $27.9 million from $31.4 million.
“The increase in direct segment net sales was due to the continued growth of our Internet channel,” chairman/CEO Dennis Pence said in a statement. “Our e-mail database now includes almost 2.6 million active addresses, which provides us with increased opportunity to market to these customers in a targeted and affordable manner. In addition, our e-mail campaigns and catalog mailings now provide a compelling way to drive retail store traffic.”
Sales Down, Loss Up at Sharper Image
San Francisco-based cataloger/retailer Sharper Image Corp. (Nasdaq: SHRP) reported declining third-quarter sales and a wider net loss.
For the three months ended Oct. 31, the merchant of high-tech gifts had a net loss of $10.5 million, compared with last year’s third-quarter net loss of $3.7 million. This year’s results include a research and development tax credit benefit totaling $737,000.
Third-quarter revenue tumbled 20%, to $123.1 million from $153.6 million last year. Direct marketing sales for the quarter fell 35%, to $31.5 million from last year’s $48.8 million. Internet sales dropped 17%, to $17.5 million from $21.0 million. Store sales declined 11%, to $71.0 million from $80.1 million.
Net Income Surges at Alloy
Higher revenue in its merchandise and sponsorship units as well as improved margins propelled New York-based Alloy to a 356% increase in net income.
Net income hit $7.3 million for the quarter ended Oct. 31, compared with $1.6 million last year. Results include spin-off related expenses of $1.5 million. The company expects to spin off its catalog/Web merchandise business, consisting of the Delia’s, Alloy, and CCS apparel and sports gear brands, before the end of the fiscal year. The company also has a marketing and promotions business. Both divisions target teens and young adults.
Revenue rose 18% to $122.9 million from $104.4 million a year earlier as both merchandise and sponsorship revenue posted gains. Net merchandise revenue increased 24%, to $59.9 million from $48.5 million last year. Sponsorship and other revenue, meanwhile, topped $63.0 million, compared with $55.9 million last year.
Net Loss Widens at Restoration Hardware
Third-quarter catalog and Web sales at Corte Madera, CA-based home furnishings merchant Restoration Hardware (Nasdaq: RSTO) grew 27%–and that’s on top of a 78% increase in the same period a year ago. But the sales surge wasn’t enough to prevent the company’s net loss from widening.
For the three months ended Oct. 29, the cataloger/retailer lost $4.2 million, compared with a net loss of $3.1 million last year. Total net revenue for the quarter increased 9%, to $128.4 million from $118.2 million last year. But comparable store sales decreased 2%, in contrast to last year’s 9% increase.
Direct Sales Jump at Harold’s Stores
Dallas-based apparel merchant Harold’s Stores saw its third-quarter direct sales nearly double, to $803,000 for the three months ended Oct. 29. Last year its third-quarter catalog and Web sales were $405,000.
Total net sales for the quarter rose 1%, to $23.3 million from $23.1 million last year. The retailer reported net income of $88,000, though after a preferred stock dividend, its net loss was $290,000.