Coldwater Creek ( CWTR) is giving hope to the moribund women's apparel space.

The specialty retailer reaffirmed its second-quarter outlook of a loss between 5 cents and 7 cents a share, but said it is starting to see some improvement in business trends as shoppers are responding to its summer collection.

Coldwater Creek expects net sales between $215 million and $220 million, down from the $241.4 million it reported a year ago.

The news sent shares of the company up 9% to $6.15 in morning trading and other women's apparel retailers followed suit. Shares of AnnTaylor Stores ( ANN) climbed 13% to $9.71, Chico's FAS ( CHS) jumped 4% to $10.56 and New York & Company ( NWY) grew 11% to $3.51.

Talbots ( TLB) was also up 7% to $4.37 after analyst Jennifer Black, from the firm bearing her name, said the retailer's new catalog showed much improvement. She said Talbots is currently one of her top stock picks.
Copyright 2009 Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.

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