SANDPOINT, Idaho, Dec. 11, 2013 (GLOBE NEWSWIRE) -- Coldwater Creek Inc. (Nasdaq:CWTR) today reported financial results for the three-month period ended November 2, 2013.
- Consolidated net sales were $154.5 million, compared with $188.1 million in third quarter 2012. Net sales from the retail segment were $120.7 million, compared with $147.2 million in the same period last year. Comparable premium retail sales declined 16.8 percent for the quarter. Net sales from the direct segment were $33.7 million, compared with $40.9 million in the same period last year.
- Consolidated gross profit was $48.2 million, or 31.2 percent of net sales, compared with $66.1 million, or 35.1 percent of net sales, for the third quarter of 2012. The 390 basis point decline in gross profit margin was due to deleveraging of buying and occupancy expense and lower merchandise margins reflecting increased promotional activity.
- Selling, general and administrative expenses (SG&A) were $70.8 million, or 45.9 percent of net sales, compared with $76.1 million, or 40.5 percent of net sales, for third quarter 2012. The decrease in SG&A was across all categories with the most significant reductions coming from marketing and employee-related expenses.
- Net loss was $23.8 million, or $0.78 per share, and included (i) other gain, net, of $8.0 million, or $0.26 per share, due to the change in the fair value of the derivative liability related to the Series A Preferred Stock issued in July 2012; (ii) a pre-tax charge of $2.3 million, or $0.07 per share, for severance and other expenses associated with the Company's cost restructuring program; (iii) a non-cash asset impairment charge of $2.7 million, or $0.09 per share, related primarily to 27 under-performing stores; and (iv) a non-cash income tax charge of $2.6 million, or $0.09 per share, related to a valuation allowance against previously recorded net deferred tax assets. This compares to third quarter 2012 net loss of $20.5 million, or $0.67 per share, which included other loss, net, of $6.8 million, or $0.22 per share, due to the change in the fair value of the derivative liability.
- Adjusted net loss for the third quarter of fiscal 2013, excluding the gain on the derivative liability, severance expense, non-cash impairment charge and non-cash income tax charge, was $24.2 million, or $0.79 per share. This compares to an adjusted net loss of $13.7 million, or $0.45 per share, for third quarter 2012, excluding the loss on the derivative liability. (Please see the table of GAAP to Non-GAAP Reconciliation of Selected Measures attached to this press release.)