This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Coldwater Creek Stock in Hot Water

NEW YORK ( TheStreet) -- Coldwater Creek (CWTR - Get Report) is up a creek without a paddle, as the women's apparel retailer said on Tuesday it expects to report a loss in its third quarter. But what exactly led to this massive earnings revision?

Coldwater Creek now foresees same-store sales tanking 20%, and slashed its guidance to a loss of 14 cents to 19 cents a share, from prior outlook of a profit in the range of 1 cents to 4 cents.

"The fall merchandise lacked appeal and failed to resonate with customers resulting in lower sales than anticipated," Stifel Nicolaus analyst Richard Jaffe, wrote in a note. He calls out important fall categories, like jackets, pants and woven shirts, as most likely holding back sales.

Coldwater Creek also did not invest enough in key categories, Jaffe said, instead relying on last year's best sellers to generate sales this year.

"We anticipate margins will be pressured as management will take aggressive steps to clear the less appealing offerings in advance of holiday," Jaffe wrote.

Coldwater Creek now expects to end the quarter with total inventory up in the mid-single-digit range versus previous expectation of flat.

Shares of Coldwater Creek are plunging 35.1% to $3.48 in morning trading.

--Written by Jeanine Poggi in New York.



>To contact the writer of this article, click here: Jeanine Poggi.

>To follow the writer on Twitter, go to http://twitter.com/jpoggi.

>To submit a news tip, send an email to: tips@thestreet.com.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
CWTR $0.02 0.87%
AAPL $132.54 0.00%
FB $80.54 0.00%
GOOG $540.11 0.00%
TSLA $247.73 0.00%

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs