Coldwater Creek Earnings: Everything You Must Know Now

Coldwater Creek Inc. (NASDAQ:CWTR) had a loss and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

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Coldwater Creek Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $-0.66 in the quarter versus EPS of $-0.80 in the year-earlier quarter.

Revenue: Decreased 8.35% to $155.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Coldwater Creek Inc. reported adjusted EPS loss of $0.66 per share. By that measure, the company beat the mean analyst estimate of $-0.77. It missed the average revenue estimate of $166.57 million.

Quoting Management: “Our first quarter results were impacted by unseasonable weather throughout the quarter; however, we were able to more than offset softer-than-expected sales through gross margin rate expansion and disciplined expense management, delivering results consistent with the higher end of our expectations,” said Jill Dean, President and Chief Executive Officer of Coldwater Creek. “The extensive work we have done to clearly define our brand strategy and target customer has influenced our merchandise direction and assortment architecture primarily in the back half of the year, which we believe will enable us to continue to generate improvements in our operating performance in fiscal 2013.”

Key Stats (on next page)…

Revenue decreased 29.47% from $220.77 million in the previous quarter. EPS decreased to $-0.66 in the quarter versus EPS of $-0.65 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a loss of $0.53 to a loss $0.55. For the current year, the average estimate has moved down from a loss of $2.09 to a loss of $2.12 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)