Financial Reports: Coldwater, Sharper Image, Alloy, and More

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.

Partner Content

The Gift of Wow: Preparing your store for the holiday season - Netsuite
Being prepared for the holiday rush used to mean stocking shelves and making sure your associates were ready for the long hours. But the digital revolution has changed everything, most importantly, customer expectations. Retailers with a physical store presence should be asking themselves—what am I doing to wow the customer?
3 Critical Components to Achieving the Perfect Order - NetSuite
Explore the 3 critical components to delivering the perfect order.
Streamlining Unified Commerce Complexity - NetSuite
Explore how consolidating multiple systems through a cloud-based commerce platform provides a seamless experience for both you, and your customer.
Strategies for Maximizing Mobile Point-of-Sale Technology - NetSuite
Learn the top five innovative ways to utilize your mobile POS technology to drive customer engagement, increase sales and elevate your brand.