Coldwater Creek Inc. today reported financial results for the three-month period ended April 28, 2012.
First Quarter 2012 Operating Results:
Consolidated net sales were $169.9 million, compared with $179.8 million in the fiscal 2011 first quarter. Net sales from the retail segment, which includes the Company's premium retail stores, outlet stores and day spa locations, were $131.2 million versus $135.3 million in the same period last year, primarily reflecting the impact of 13 net store closures since the end of the first quarter of fiscal 2011 as part of our store optimization program. Comparable store sales for the quarter declined 0.6 percent. First quarter net sales from the direct segment, which includes internet, phone and mail orders, decreased 13.1 percent to $38.7 million from $44.5 million in the same period last year.
Consolidated gross profit was $54.4 million, or 32.0 percent of net sales, compared with $54.6 million, or 30.4 percent of net sales, for the fiscal 2011 first quarter. The 160 basis point increase in gross profit margin was primarily due to a 215 basis point increase in merchandise margin reflecting improved product performance and lower overall inventory levels.
Selling, general and administrative expenses (SG&A) were $77.5 million, or 45.6 percent of net sales, compared with $83.9 million, or 46.7 percent of net sales, for the fiscal 2011 first quarter. The $6.4 million decline in SG&A expenses was due primarily to lower expenses in all categories, with the largest decline from marketing expense versus the prior year.
Net loss was $23.8 million, or $0.20 per share on 121.7 million weighted average shares outstanding, compared with a net loss of $30.0 million, or $0.32 per diluted share on 92.5 million weighted average shares outstanding for the fiscal 2011 first quarter. The increase in the number of shares versus the prior year period reflects the sale of 28.9 million shares of common stock on October 24, 2011.