Coldwater Creek revises numbers

Board OKs stock repurchase program

SANDPOINT— Coldwater Creek announced Thursday that, based on operating results to date in the third quarter, it is lowering its previously issued earnings guidance for the second half of fiscal 2007.

For the third quarter, the company now expects sales to be in the range of $260 million to $265 million, and a loss per share for the same period in the range of 11 to 13 cents. Sales for the fourth quarter of 2007 are expected to be in the range of $360 million to $365 million, and break-even earnings for the same period.

For the second half of fiscal 2007, the company now expects sales to range from $620 million to $630 million, with a loss per share in the range of 10 to 12 cents.

The company expects third and fourth quarter inventory levels to decrease on a per-square-foot basis versus the prior year levels.

In addition to an increasingly promotional environment, the company has experienced declining traffic throughout the third quarter. At the same time, the company continues to experience increased conversion rates on a year-over- year basis.

"We are clearly disappointed in the current business trends, including continued lower customer traffic and a highly promotional environment, the combination of which is likely to result in negative net income and earnings-per-share performance in the third quarter," said Dan Griesemer, chief executive officer-elect for Coldwater Creek.

However, Griesemer said the company remains focused on its commitment to deliver compelling product and outstanding service to customers, while implementing further expense reductions.

Coldwater Creek also announced that its board of directors has authorized a program to repurchase up to $75 million of its common stock over the next 12 months.

"We remain confident in the company's long-term growth prospects," Dennis Pence, chairman of the board, said regarding the stock repurchase program. "We have a healthy balance sheet and the fundamentals of our business remain strong. As such, the board of directors and the company believe the current market price of Coldwater Creek's stock does not reflect the company's long-term value. The board's decision to implement a stock repurchase program underscores our financial strength, and the program represents an excellent opportunity to enhance shareholder value over the long-term."

Coldwater Creek is an integrated triple-sales-channel retailer of women's apparel, jewelry, gifts and accessories through a growing number of premium retail stores located across the United States, online and direct-mail catalogs.