CWC rises on positive year outlook

SANDPOINT — Despite taking a hit in a tough market year, Coldwater Creek increased earnings in the final quarter of fiscal 2009 and announced plans to open more retail stores this year.

The Sandpoint-based women’s apparel and accessory company reported an increase in net sales of $35 million in the last quarter of its fiscal year, which ended in January, although it absorbed a $56 million net annual loss, according to a press release.

 Gross profit for the last quarter was $90 million compared to $76 million a year ago. At the same time, the company cut expenses by $5 million.

“Our fourth quarter results were significantly ahead of the prior year as we began to see an improvement in our comparable store sales and direct revenue, as well as a modest expansion in merchandise margin,” Coldwater Creek CEO Dennis Pence, said.

The company, founded in 1984 as a mail-order retailer that later became a catalog and Internet-based seller, joined the brick and mortar world earlier this decade.

After showing no profits in the last few years, Coldwater Creek is back on track, Pence said.

By shoring up its product line, increasing profitability margins and tightening its inventory , the company hopes to climb back into the black.

“While we are disappointed to report a loss,” Pence said.

“We are confident we are taking the right steps to position the company for profitability and growth.”

Pence, Coldwater Creek’s founder, took over last year as its former CEO was ousted in an effort to revitalize the company, according to reports.

Although it opened no new retail stores in the final quarter of last year, Coldwater Creek ended the year with 356 stores and plans to open approximately 20 new stores this year.

The company expects to report a profit of 8 cents to 12 cents per share after the first quarter of this year, while some analysts project break-even results, according to a report in The Wall Street Journal.

Coldwater Creek stock rose 21 percent so far in 2010.

The stock rose from gained $1.45, or 26.8 percent, to $6.86 in afternoon trading. The stock has traded between $1.43 and $9.20 over the last year.