Coldwater Creek down on lowered guidance
Coldwater Creek Inc. (Nasdaq: CWTR) shares are taking a heavy pounding after women’s apparel retailer forecast a third-quarter loss. For the third quarter, the Sandpoint, Idaho-based firm projects a loss in the range of $0.11 to $0.13 per share on sales in between $260 million and $265 million. For the fourth quarter, the company expects break-even net income and revenue in the range of $360 million to $365 million.
Wachovia downgraded Coldwater Creek’s stock to “market perform” from “outperform,” due to Coldwater Creek’s announcement.
The company, which focuses on women aged 35 and older, expects third-quarter and fourth-quarter inventory to decrease per square foot. The firm said it’s seen falling foot traffic in the third quarter.
In afternoon trading, CWTR shares are down 27.97%, or $3.04, at $7.83. Over the last 52 weeks, shares have ranged from $7.72 to $31.25.
