Coldwater notes lackluster sales

SANDPOINT - Coldwater Creek continued its streak of lackluster earning reports with a $17 million net loss in the fourth quarter of 2007.

The report, released Wednesday during a conference call, also included a $21 million decrease in net sales from the same period in 2006.

President and CEO, Dan Griesemer, said he and the rest of the management team are disappointed with the fourth quarter performance, although the numbers were in line with company estimates.

Griesemer attributed much of the company's recent failings on what he called a homogenized product line, as well as an over reliance on promotions and an overly-broad marketing plan that did not directly target its core demographic of baby boomer women.

The company expects more losses in early 2008, but hopes the tide will turn later in the year.

“I'm cautiously optimistic about the back half of 2008,” Griesemer said. “I think we can hit our stride at that point.”

Griesemer proposed several initiatives that he believes will help the company return to its early success, including limiting promotions, improving operating efficiency and reducing catalog circulation.

Combined, Greisemer said the company will save more than $60 million by implementing the initiatives.

Chief Merchandising Officer, Georgia Shonk-Simmons, echoed many of Griesemer's sentiments. She said fall and holiday merchandise suffered from a lack of newness and said products have been in “a circle of sameness.”

Like Griesemer, Shonk-Simmons said she is optimistic about the future and said the company plans to reclaim its heritage.