Coldwater Creek Reports Financial Results for Fiscal 2000 Fourth Quarter, Full Year

Apr 11, 2001, 01:00 ET from Coldwater Creek Inc.

    SANDPOINT, Idaho, April 11 /PRNewswire/ --
 Coldwater Creek Inc. (Nasdaq:   CWTR), a leading multi-channel retailer of
 women's apparel, jewelry, gifts and home merchandise, today announced
 financial results for the 14-week and 53-week periods ended March 3, 2001,
 compared with the 13-week and 52-week periods ended Feb. 26, 2000, that were
 consistent with earnings guidance provided on Feb. 13, 2001.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/19990723/CWTRLOGO )
     Net income for the fiscal 2000 fourth quarter was $0.8 million, or
 $0.07 per diluted share, compared with net income of $6.0 million, or
 $0.56 per diluted share, for the fiscal 1999 fourth quarter.  Net sales for
 the fiscal 2000 fourth quarter increased 23.4 percent to $139.0 million from
 $112.7 million for the fiscal 1999 fourth quarter.  The additional week in
 fiscal 2000 accounted for approximately $8.1 million in incremental net sales.
 (Refer to Note A for reclassifications of revenues and expenses related to the
 company's required adoption of EITF 00-10 related to shipping and handling
 revenue and expenses and other expense reclassifications in order to
 facilitate peer group comparability as we grow the Retail Channel.  These
 reclassifications had no impact on net income or earnings per share.)
     "As previously announced, lower-than-expected customer response to our
 full-price, early spring merchandise, on higher catalog circulation, clearly
 affected the strong top- and bottom-line results we delivered in the preceding
 three fiscal quarters," said Georgia Shonk-Simmons, chief executive officer.
 "As reported, we also ramped up clearance activity to ensure that year-end
 inventories would be in line with our revised plans, but that increased
 activity, combined with increased mailings, negatively impacted our gross
 margins and selling, general and administrative expenses."
     Fiscal year 2000 net income was $13.2 million, or $1.22 per diluted share,
 compared with $13.7 million, or $1.29 per diluted share, excluding the
 $0.05 earnings per diluted share impact of the sale of the Milepost Four men's
 catalog, reported for fiscal year 1999.  Net sales for fiscal year 2000 were
 up 26.8 percent to $458.4 million from $361.6 million for fiscal year 1999.
     "Management acted quickly and decisively on the slower January/February
 sales trends to implement company wide cost control measures, while leveraging
 the combined strengths of catalogs, Internet, and retail stores in order to
 confront the effects of a slower U.S. economy, a highly promotional selling
 environment and decreased consumer confidence," said Shonk-Simmons.  "As a
 result of this multi-channel effectiveness, our inventory level of $66 million
 is lower than the target range of $72-$74 million provided in our mid-February
 guidance, leaving us with more current merchandise as we enter the summer
 selling season," Shonk-Simmons added.
     Net sales from the company's Direct Channel, which encompasses its
 traditional catalog business and growing e-commerce business, increased
 17.8 percent to $128.1 million for the 2000 fourth quarter, based partly on
 increased clearance activity, from $108.7 million for the 1999 fourth quarter.
 The Direct Channel's net sales for fiscal year 2000 were up 22.1 percent to
 $426.7 million from $349.4 million for fiscal 1999.
     For the fiscal 2000 fourth quarter, net sales from the company's Internet
 channel were up 182.9 percent to $41.3 million, from $14.6 million for the
 1999 fourth quarter, and represented 29.7 percent of the company's net sales.
 Net sales via the Internet were up 289.3 percent to $112.9 million for fiscal
 2000, compared with $29.0 million for fiscal 1999.
     The company's Retail Channel, which is comprised of its expanding base of
 full-line retail stores, reported net sales that were up 179.5 percent to
 $10.9 million for the 2000 fourth quarter from $3.9 million in the comparable
 quarter a year ago.  The Retail Channel's net sales for fiscal 2000 were up
 160.7 percent to $31.8 million from $12.2 million for fiscal 1999.  The
 company operated 10 full-line retail stores at the end of fiscal 2000, versus
 four full-line retail stores at the end of fiscal 1999.
     "We continue to be encouraged by the way customers have embraced our
 Internet business, as well as their receptiveness to merchandise in our
 full-line retail stores," Shonk-Simmons said.  "Internet, in particular, has
 shown continued strong growth, realizing nearly $113 million in net sales for
 the full year, and representing almost 30 percent of company business for the
 fiscal fourth quarter.  We remain very pleased with the performance of our
 profitable Internet channel."
     Gross profit for the 2000 fourth quarter was up 10.1 percent to
 $56.9 million from $51.7 million in the 1999 fourth quarter, while the gross
 margin rate, impacted by a higher degree of promotional selling, was
 40.9 percent for the 2000 fourth quarter, compared with 45.9 percent for the
 1999 fourth quarter.  Gross profit for fiscal year 2000 increased 23.0 percent
 to $203.3 million from $165.3 million for fiscal year 1999.  The gross margin
 rate for fiscal 2000 was 44.3 percent, versus 45.7 percent for fiscal 1999.
     Selling, general and administrative (SG&A) expenses for the 2000 fourth
 quarter increased 33.1 percent to $56.1 million, or 40.4 percent of total
 sales, compared with $42.2 million, or 37.4 percent of total sales, for the
 1999 fourth quarter.  SG&A expenses for fiscal 2000 increased 27.3 percent to
 $182.8 million, or 39.9 percent of net sales, from $143.6 million, or
 39.7 percent of total sales, for fiscal 1999.  The increases in the SG&A
 expenses were primarily due to increased catalog circulation.
     Income from operations for the fiscal 2000 fourth quarter was
 $0.8 million, compared with $9.5 million in the fiscal 1999 fourth quarter,
 while full-year operating income in fiscal 2000 decreased 5.7 percent to
 $20.5 million from $21.7 million for fiscal 1999.
     On March 31, 2001, the company's Board of Directors authorized a
 stock repurchase program under which the company may repurchase up to
 300,000 common shares.  There is no guarantee as to the exact number of shares
 which will be repurchased by the company and the company may discontinue
 purchases at any time management determines additional purchases are not
 warranted.  As of March 31, 2001, Coldwater Creek had approximately 10.7
 million shares outstanding.
     As previously announced, Coldwater Creek will host a conference call on
 April 11, 2001, at 4:45 p.m. Eastern Time to discuss fiscal
 2000 fourth quarter and full-year results.  To listen to the live Web cast,
 log on to http://www.videonewswire.com/coldwater/041101/ .  The call will be
 archived from approximately one hour after the conference call until midnight
 on April 18, 2001.  This rebroadcast of the call may be accessed by dialing
 719-457-0820, and the passcode "796206."
     The Company's quarterly reporting schedule for fiscal 2001 is as follows:
 
     First Quarter:       June 27, 2001
     Second Quarter:      September 26, 2001
     Third Quarter:       December 19, 2001
     Fourth Quarter: April 10, 2002
 
     Note A:  As required by EITF 00-10, "Accounting for Shipping and Handling
 Fees and Costs", the company has reclassified shipping and handling revenues
 and expenses for all periods presented.  This reporting change reflects the
 effect of reclassifying shipping and handling revenue into sales and the
 associated expenses into cost of sales and related buying and occupancy.
 Additionally, the company has reclassified expenses associated with store
 occupancy and other distribution center costs in order to facilitate peer
 group comparability as we grow the Retail Channel.  Schedules which detail the
 impact of these reclassifications on the Consolidated Statements of Operations
 for fiscal years 2000, 1999 and 1998 are attached to this release.  These
 reclassifications had no impact on the company's net income or earnings per
 share.
     Coldwater Creek is a leading multi-channel retailer of women's apparel,
 jewelry, gift and soft home merchandise through direct-mail catalogs,
 interactive e-commerce web sites at www.coldwatercreek.com and
 www.galleryatthecreek.com, and full-line retail stores located primarily in
 major metropolitan areas.
     This news release contains forward-looking statements, including
 statements regarding the company's future financial and operating results,
 financial position, sales and gross profit trends and expectations.  These
 statements are based on management's current expectations and are subject to a
 number of uncertainties and risks.  Actual results may differ materially.
 These uncertainties and risks include, without limitation, the difficulties in
 forecasting unpredictable customer tastes and buying trends; the difficulties
 inherent in successful catalog management, including timing, mailing and
 postal delivery delays, sizing and merchandising; potential problems
 correlating inventory to customer demand, especially in connection with
 clearance activities; the early stage of the company's Internet business and
 potential failure to generate increased Internet sales; potential cost
 overruns and delays that the company may encounter in launching multiple
 retail stores; fluctuations in operating results; uncertainty of demand for
 the company's products, which may require the company to significantly
 increase promotional costs to increase sales; the general downturn in the U.S.
 economy; the unpredictable and changing buying habits of customers,
 particularly as a result of economic downturn; potential that the mix of the
 company's sales will be weighted more toward clearance merchandise than to
 full price merchandise and related average sale; the potential inability to
 generate sales through promotional activity; the possibility that the company
 may not be able to achieve substantial cost reductions; and other matters
 described in the company's most recent Form 10-K and Forms 10-Q, which are
 available from the United States Securities and Exchange Commission and other
 sources. The company assumes no obligation to update these forward-looking
 statements later in the quarter or provide periodic updates or guidance in
 subsequent quarters.
 
                     COLDWATER CREEK INC. AND SUBSIDIARY
            CONSOLIDATED STATEMENTS OF OPERATIONS AND SUPPLEMENTAL DATA
           (unaudited, in thousands except for per share and ratio data)
 
                                   Three Months Ended     Twelve Months Ended
 
                                     March 3,  Feb. 26,  March 3,  Feb. 26,
     Statements of Operations:        2001       2000      2001       2000
 
     Net sales                       $138,992  $112,652  $458,445   $361,566
     Cost of sales and related
      buying and occupancy             82,118    60,994   255,187    196,281
         Gross profit                  56,874    51,658   203,258    165,285
     Selling, general and
      administrative expenses          56,094    42,150   182,770    143,553
         Income from operations           780     9,508    20,488     21,732
     Interest, net, and other             362       318     1,114        864
     Gain on sale of Milepost Four
      assets                               --        --        --        826
         Income before provision for
          income taxes                  1,142     9,826    21,602     23,422
     Provision for income taxes           370     3,858     8,364      9,251
         Net income                   $   772  $  5,968  $ 13,238   $ 14,171
 
         Net income per share
          - Basic                     $ 0.07   $  0.58   $  1.26    $  1.38
 
         Weighted average shares
          outstanding - Basic         10,615    10,299    10,497     10,236
 
         Net income per share
         - Diluted                    $ 0.07   $  0.56   $  1.22    $  1.34
 
         Weighted average shares
          outstanding - Diluted       10,982    10,686    10,892     10,588
 
 
     Supplemental Data:
                                    Three Months Ended    Twelve Months Ended
                                   March 3,   Feb. 26,      March 3,  Feb. 26,
     Operating Statistics:          2001        2000         2001      2000
 
     Catalogs mailed (a)           39,657      23,141       183,590   139,766
     Active customers (b)                                     2,607     2,189
 
 
                                                            March 3,   Feb. 26,
     Balance Sheet Data:                                        2001     2000
 
     Cash and cash equivalents                               $ 4,600   $ 7,533
     Inventories                                              66,149    60,203
     Current assets                                           89,336    80,821
     Current liabilities                                      50,755    45,787
     Current ratio                                               1.8       1.8
 
     Note (a):  Includes 5,515 catalogs mailed during the additional week
 (53rd week) of fiscal 2000.
     Note (b):  An "active" customer is defined as a customer who has purchased
 merchandise from the Company during the preceding twelve months.
 
 
                      COLDWATER CREEK INC. AND SUBSIDIARY
                          CONSOLIDATED BALANCE SHEETS
                (unaudited, in thousands, except for share data)
 
                            ASSETS
                                                    March 3,      February 26,
                                                      2001            2000
     CURRENT ASSETS:
         Cash and cash equivalents               $    4,600      $    7,533
         Receivables                                  7,077           5,741
         Inventories                                 66,149          60,203
         Prepaid expenses                             3,856           1,319
         Prepaid catalog costs                        5,581           3,994
         Deferred income taxes                        2,073           2,031
 
          Total current assets                       89,336          80,821
 
     Deferred catalog costs                           7,240           2,817
     Property and equipment, net                     55,151          38,895
     Other                                            1,236           1,453
 
          Total assets                           $  152,963      $  123,986
 
                 LIABILITIES AND STOCKHOLDERS' EQUITY
 
     CURRENT LIABILITIES:
         Accounts payable                        $   34,335      $   30,098
         Accrued liabilities                         16,420          13,549
         Income taxes payable                            --           2,140
 
          Total current liabilities                  50,755          45,787
 
     Deferred income taxes                            3,866           1,629
     Deferred rents                                   2,207              --
 
          Total liabilities                          56,828          47,416
 
     Commitments and contingencies                       --              --
 
     STOCKHOLDERS' EQUITY:
         Preferred stock, $.01 par value,
          1,000,000 shares authorized,
          none issued and outstanding                    --              --
         Common stock, $.01 par value,
          60,000,000 shares authorized,
          10,657,324 and 10,319,345
          shares issued and outstanding,
          respectively                                  107             103
         Additional paid-in capital                  47,902          41,579
         Retained earnings                           48,126          34,888
 
          Total stockholders' equity                 96,135          76,570
 
          Total liabilities and
           stockholders' equity                  $  152,963      $  123,986
 
                      COLDWATER CREEK INC. AND SUBSIDIARY
                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                           (unaudited, in thousands)
 
                                                     Twelve Months Ended
                                                    March 3,      February 26,
                                                      2001           2000
 
     OPERATING ACTIVITIES:
     Net income                                   $  13,238       $  14,171
     Non cash items:
         Depreciation and amortization                9,760           7,242
         Deferred income taxes                        2,195          (1,780)
         Gain on sale of Milepost Four
          assets                                         --            (826)
         Other, net                                     230             (30)
     Net change in current assets and
      liabilities:
         Receivables                                    748          (1,881)
         Inventories                                 (5,946)         (4,449)
         Prepaid expenses                               (96)            (85)
         Prepaid catalog costs                       (1,587)            280
         Accounts payable                             4,026          13,012
         Accrued liabilities                          2,871           5,881
         Income taxes payable                        (2,140)         (1,421)
     (Increase) decrease in deferred
      catalog costs                                  (4,423)            378
 
           Net cash provided by operating
            activities                            $  18,876       $  30,492
 
     INVESTING ACTIVITIES:
          Purchase of property and
           equipment                              $ (25,842)      $ (16,647)
          Repayments of (loans to)
           executives                                   161             (77)
          Proceeds from sale of Milepost
           Four assets                                   --           1,546
          Purchase of marketable
           securities                                    --          (2,280)
          Proceeds from sale of marketable
           securities                                    --           2,239
          Proceeds from sale of land                     --             639
 
           Net cash used in investing
            activities                            $ (25,681)      $ (14,580)
 
     FINANCING ACTIVITIES:
         Net repayments under revolving
          line of credit                          $      --       $  (9,938)
         Net proceeds from exercises of
          stock options                               3,925           1,410
         Other financing costs                          (53)             --
 
           Net cash provided by (used in)
            financing activities                  $   3,872       $  (8,528)
 
             Net (decrease) increase in
              cash and cash equivalents              (2,933)          7,384
                 Cash and cash
                  equivalents, beginning              7,533             149
 
             Cash and cash equivalents,
              ending                              $   4,600       $   7,533
 
 
     SUPPLEMENTAL CASH FLOW DATA:
         Cash paid for interest                   $       7       $      47
         Cash paid for income taxes                   8,152          12,656
         Tax benefit from exercises of
          stock options                               2,402             883
         Deferred rent                                2,084              --
 
     The following Consolidated Statements of Operations set forth the
 company's reclassifications of shipping and handling revenues and costs, as
 required by EITF 00-10, "Accounting for Shipping and Handling Fees and Costs,"
 as well as store occupancy costs and other distribution centers costs.
 Pursuant to EITF 00-10, shipping and handling revenues earned, and shipping
 and handling costs incurred, have been reclassified into net sales and cost of
 sales and related buying and occupancy, respectively.  Previously, shipping
 and handling revenues and costs were presented net within selling, general and
 administrative expenses ("SG&A").  Additionally, the company has reclassified
 expenses associated with store occupancy and other distribution center costs
 previously classified in SG&A to cost of sales, in order to facilitate peer
 group comparability as we grow the Retail Channel.  All prior periods have
 been reclassified to be consistent with the current presentation with no
 impact on net income or earnings per share.
 
                      COLDWATER CREEK INC. AND SUBSIDIARY
     CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE FISCAL YEARS 1998 - 2000
              (unaudited, in thousands except for per share data)
 
                                             March 3,     Feb. 26,    Feb. 27,
                                               2001        2000         1999
                                           (53 Weeks)   (52 Weeks)   (52 Weeks)
 
     AS RECLASSIFIED:
 
     Net merchandise sales                 $  414,362  $  328,267   $  325,231
     Shipping and handling revenue             44,083      33,299       30,848
         Net sales                            458,445     361,566      356,079
     Cost of sales and related buying and
      occupancy                               218,442     166,353      164,109
     Shipping and handling costs               36,745      29,928       27,857
         Cost of sales                        255,187     196,281      191,966
         Gross profit                         203,258     165,285      164,113
     Selling, general and administrative
      expenses                                182,770     143,553      145,735
         Income from operations                20,488      21,732       18,378
     Interest, net, and other                   1,114         864         (697)
     Gain on sale of Milepost Four assets          --         826           --
         Income before provision for
          income taxes                         21,602      23,422       17,681
     Provision for income taxes                 8,364       9,251        6,990
         Net income                        $   13,238  $   14,171   $   10,691
 
         Net income per share - Diluted    $     1.22  $     1.34   $     1.02
 
 
                                             March 3,     Feb. 26,    Feb. 27,
                                               2001        2000         1999
                                           (53 Weeks)   (52 Weeks)   (52 Weeks)
 
     AS PREVIOUSLY REPORTED:
 
     Net sales                             $  414,362  $  328,267   $  325,231
     Cost of sales                            202,700     156,186      156,198
       Gross profit                           211,662     172,081      169,033
     Selling, general and administrative
      expenses                                191,174     150,349      150,655
       Income from operations                  20,488      21,732       18,378
     Interest, net, and other                   1,114         864         (697)
     Gain on sale of Milepost Four assets          --         826           --
       Income before provision for income
        taxes                                  21,602      23,422       17,681
     Provision for income taxes                 8,364       9,251        6,990
       Net income                          $   13,238  $   14,171   $   10,691
 
       Net income per share - Diluted      $     1.22  $     1.34   $     1.02
 
 
                      COLDWATER CREEK INC. AND SUBSIDIARY
      QUARTERLY CONSOLIDATED STATEMENTS OF OPERATIONS FOR FISCAL YEAR 2000
              (unaudited, in thousands except for per share data)
 
                                          Q1 2000   Q2 2000   Q3 2000   Q4 2000
                                            (13       (13      (13        (14
                                           Weeks)    Weeks)    Weeks)    Weeks)
 
     AS RECLASSIFIED:
 
     Net merchandise sales               $ 86,891 $ 78,033  $123,698  $125,740
     Shipping and handling revenue          9,649    8,276    12,906    13,252
         Net sales                         96,540   86,309   136,604   138,992
     Cost of sales and related buying
      and occupancy                        46,101   40,360    62,416    69,565
     Shipping and handling costs            8,404    6,435     9,353    12,553
         Cost of sales                     54,505   46,795    71,769    82,118
         Gross profit                      42,035   39,514    64,835    56,874
     Selling, general and administrative
      expenses                             36,351   36,885    53,440    56,094
         Income from operations             5,684    2,629    11,395       780
     Interest, net, and other                 219      329       204       362
         Income before provision for
          income taxes                      5,903    2,958    11,599     1,142
     Provision for income taxes             2,308    1,151     4,535       370
         Net income                      $  3,595 $  1,807  $  7,064  $    772
 
         Net income per share - Dilute   $   0.34 $   0.17  $   0.64  $   0.07
 
 
                                          Q1 2000   Q2 2000   Q3 2000   Q4 2000
                                            (13       (13      (13        (14
                                           Weeks)    Weeks)    Weeks)    Weeks)
 
     AS PREVIOUSLY REPORTED:
 
     Net sales                           $ 86,891  $ 78,033  $123,698  $125,740
     Cost of sales                         42,971    36,977    58,323    64,429
       Gross profit                        43,920    41,056    65,375    61,311
     Selling, general and administrative
      expenses                             38,236    38,427    53,980    60,531
       Income from operations               5,684     2,629    11,395       780
     Interest, net, and other                 219       329       204       362
       Income before provision for
        income taxes                        5,903     2,958    11,599     1,142
     Provision for income taxes             2,308     1,151     4,535       370
       Net income                        $  3,595  $  1,807  $  7,064  $    772
 
       Net income per share - Diluted    $   0.34  $   0.17  $   0.64  $   0.07
 
 
                      COLDWATER CREEK INC. AND SUBSIDIARY
      QUARTERLY CONSOLIDATED STATEMENTS OF OPERATIONS FOR FISCAL YEAR 1999
              (unaudited, in thousands except for per share data)
 
                                          Q1 1999   Q2 1999   Q3 1999   Q4 1999
                                            (13       (13      (13        (13
                                            Weeks)    Weeks)   Weeks)    Weeks)
 
     AS RECLASSIFIED:
 
     Net merchandise sales               $ 65,135 $ 59,812  $101,190  $102,130
     Shipping and handling revenue          6,822    5,889    10,066    10,522
         Net sales                         71,957   65,701   111,256   112,652
     Cost of sales and related buying and
      occupancy                            32,889   32,088    50,631    50,745
     Shipping and handling costs            5,504    5,139     9,036    10,249
         Cost of sales                     38,393   37,227    59,667    60,994
         Gross profit                      33,564   28,474    51,589    51,658
     Selling, general and administrative
      expenses                             30,997   27,067    43,339    42,150
         Income from operations             2,567    1,407     8,250     9,508
     Interest, net, and other                  46      161       339       318
     Gain on sale of Milepost Four assets      --      826        --        --
         Income before provision for
          income taxes                      2,613    2,394     8,589     9,826
     Provision for income taxes             1,044      948     3,401     3,858
         Net income                      $  1,569 $  1,446  $  5,188  $  5,968
 
         Net income per share - Diluted  $   0.15 $   0.14  $   0.49  $   0.56
 
                                          Q1 1999   Q2 1999   Q3 1999   Q4 1999
                                            (13      (13       (13       (13
                                           Weeks)   Weeks)     Weeks)    Weeks)
 
     AS PREVIOUSLY REPORTED:
 
     Net sales                           $ 65,135 $ 59,812  $101,190  $102,130
     Cost of sales                         30,941   29,883    48,045    47,317
         Gross profit                      34,194   29,929    53,145    54,813
     Selling, general and administrative
      expenses                             31,627   28,522    44,895    45,305
         Income from operations             2,567    1,407     8,250     9,508
     Interest, net, and other                  46      161       339       318
     Gain on sale of Milepost Four assets      --      826        --        --
         Income before provision for
          income taxes                      2,613    2,394     8,589     9,826
     Provision for income taxes             1,044      948     3,401     3,858
         Net income                      $  1,569 $  1,446  $  5,188  $  5,968
 
         Net income per share - Diluted  $   0.15 $   0.14  $   0.49  $   0.56
 
                      COLDWATER CREEK INC. AND SUBSIDIARY
      QUARTERLY CONSOLIDATED STATEMENTS OF OPERATIONS FOR FISCAL YEAR 1998
              (unaudited, in thousands except for per share data)
 
                                           Q1 1998   Q2 1998   Q3 1998  Q4 1998
                                            (13        (13       (13     (13
                                            Weeks)    Weeks)    Weeks)  Weeks)
 
     AS RECLASSIFIED:
 
     Net merchandise sales                 $ 79,937 $ 60,952 $ 94,730 $ 89,613
     Shipping and handling revenue            8,043    5,754    8,348    8,703
         Net sales                           87,980   66,706  103,078   98,316
     Cost of sales and related buying and
      occupancy                              40,064   32,680   47,659   43,707
     Shipping and handling costs              6,395    4,592    7,373    9,498
         Cost of sales                       46,459   37,272   55,032   53,205
         Gross profit                        41,521   29,434   48,046   45,111
     Selling, general and administrative
      expenses                               40,099   28,226   40,157   37,252
         Income from operations               1,422    1,208    7,889    7,859
     Interest, net, and other                  (247)    (278)    (343)     171
         Income before provision for income
          taxes                               1,175      930    7,546    8,030
     Provision for income taxes                 472      374    3,033    3,111
         Net income                         $   703  $   556 $  4,513 $  4,919
 
         Net income per share - Diluted     $  0.07  $  0.05 $   0.43 $   0.48
 
                                            Q1 1998   Q2 1998  Q3 1998  Q4 1998
                                              (13      (13      (13      (13
                                             Weeks)    Weeks)   Weeks)   Weeks)
 
     AS PREVIOUSLY REPORTED:
 
     Net sales                              $79,937  $60,952  $94,730  $89,613
     Cost of  sales                          38,125   30,968   45,747   41,359
         Gross profit                        41,812   29,984   48,983   48,254
     Selling, general and administrative
      expenses                               40,390   28,776   41,094   40,395
         Income from operations               1,422    1,208    7,889    7,859
     Interest, net, and other                  (247)    (278)    (343)     171
         Income before provision for income
          taxes                               1,175      930    7,546    8,030
     Provision for income taxes                 472      374    3,033    3,111
         Net income                         $   703  $   556  $ 4,513  $ 4,919
 
         Net income per share - Diluted     $  0.07  $  0.05  $  0.43  $  0.48
 
     CONTACT:  David Gunter, Director of Corporate Communications & Investor
 Relations of Coldwater Creek Inc., 208-265-3944.
 
 

SOURCE Coldwater Creek Inc.
    SANDPOINT, Idaho, April 11 /PRNewswire/ --
 Coldwater Creek Inc. (Nasdaq:   CWTR), a leading multi-channel retailer of
 women's apparel, jewelry, gifts and home merchandise, today announced
 financial results for the 14-week and 53-week periods ended March 3, 2001,
 compared with the 13-week and 52-week periods ended Feb. 26, 2000, that were
 consistent with earnings guidance provided on Feb. 13, 2001.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/19990723/CWTRLOGO )
     Net income for the fiscal 2000 fourth quarter was $0.8 million, or
 $0.07 per diluted share, compared with net income of $6.0 million, or
 $0.56 per diluted share, for the fiscal 1999 fourth quarter.  Net sales for
 the fiscal 2000 fourth quarter increased 23.4 percent to $139.0 million from
 $112.7 million for the fiscal 1999 fourth quarter.  The additional week in
 fiscal 2000 accounted for approximately $8.1 million in incremental net sales.
 (Refer to Note A for reclassifications of revenues and expenses related to the
 company's required adoption of EITF 00-10 related to shipping and handling
 revenue and expenses and other expense reclassifications in order to
 facilitate peer group comparability as we grow the Retail Channel.  These
 reclassifications had no impact on net income or earnings per share.)
     "As previously announced, lower-than-expected customer response to our
 full-price, early spring merchandise, on higher catalog circulation, clearly
 affected the strong top- and bottom-line results we delivered in the preceding
 three fiscal quarters," said Georgia Shonk-Simmons, chief executive officer.
 "As reported, we also ramped up clearance activity to ensure that year-end
 inventories would be in line with our revised plans, but that increased
 activity, combined with increased mailings, negatively impacted our gross
 margins and selling, general and administrative expenses."
     Fiscal year 2000 net income was $13.2 million, or $1.22 per diluted share,
 compared with $13.7 million, or $1.29 per diluted share, excluding the
 $0.05 earnings per diluted share impact of the sale of the Milepost Four men's
 catalog, reported for fiscal year 1999.  Net sales for fiscal year 2000 were
 up 26.8 percent to $458.4 million from $361.6 million for fiscal year 1999.
     "Management acted quickly and decisively on the slower January/February
 sales trends to implement company wide cost control measures, while leveraging
 the combined strengths of catalogs, Internet, and retail stores in order to
 confront the effects of a slower U.S. economy, a highly promotional selling
 environment and decreased consumer confidence," said Shonk-Simmons.  "As a
 result of this multi-channel effectiveness, our inventory level of $66 million
 is lower than the target range of $72-$74 million provided in our mid-February
 guidance, leaving us with more current merchandise as we enter the summer
 selling season," Shonk-Simmons added.
     Net sales from the company's Direct Channel, which encompasses its
 traditional catalog business and growing e-commerce business, increased
 17.8 percent to $128.1 million for the 2000 fourth quarter, based partly on
 increased clearance activity, from $108.7 million for the 1999 fourth quarter.
 The Direct Channel's net sales for fiscal year 2000 were up 22.1 percent to
 $426.7 million from $349.4 million for fiscal 1999.
     For the fiscal 2000 fourth quarter, net sales from the company's Internet
 channel were up 182.9 percent to $41.3 million, from $14.6 million for the
 1999 fourth quarter, and represented 29.7 percent of the company's net sales.
 Net sales via the Internet were up 289.3 percent to $112.9 million for fiscal
 2000, compared with $29.0 million for fiscal 1999.
     The company's Retail Channel, which is comprised of its expanding base of
 full-line retail stores, reported net sales that were up 179.5 percent to
 $10.9 million for the 2000 fourth quarter from $3.9 million in the comparable
 quarter a year ago.  The Retail Channel's net sales for fiscal 2000 were up
 160.7 percent to $31.8 million from $12.2 million for fiscal 1999.  The
 company operated 10 full-line retail stores at the end of fiscal 2000, versus
 four full-line retail stores at the end of fiscal 1999.
     "We continue to be encouraged by the way customers have embraced our
 Internet business, as well as their receptiveness to merchandise in our
 full-line retail stores," Shonk-Simmons said.  "Internet, in particular, has
 shown continued strong growth, realizing nearly $113 million in net sales for
 the full year, and representing almost 30 percent of company business for the
 fiscal fourth quarter.  We remain very pleased with the performance of our
 profitable Internet channel."
     Gross profit for the 2000 fourth quarter was up 10.1 percent to
 $56.9 million from $51.7 million in the 1999 fourth quarter, while the gross
 margin rate, impacted by a higher degree of promotional selling, was
 40.9 percent for the 2000 fourth quarter, compared with 45.9 percent for the
 1999 fourth quarter.  Gross profit for fiscal year 2000 increased 23.0 percent
 to $203.3 million from $165.3 million for fiscal year 1999.  The gross margin
 rate for fiscal 2000 was 44.3 percent, versus 45.7 percent for fiscal 1999.
     Selling, general and administrative (SG&A) expenses for the 2000 fourth
 quarter increased 33.1 percent to $56.1 million, or 40.4 percent of total
 sales, compared with $42.2 million, or 37.4 percent of total sales, for the
 1999 fourth quarter.  SG&A expenses for fiscal 2000 increased 27.3 percent to
 $182.8 million, or 39.9 percent of net sales, from $143.6 million, or
 39.7 percent of total sales, for fiscal 1999.  The increases in the SG&A
 expenses were primarily due to increased catalog circulation.
     Income from operations for the fiscal 2000 fourth quarter was
 $0.8 million, compared with $9.5 million in the fiscal 1999 fourth quarter,
 while full-year operating income in fiscal 2000 decreased 5.7 percent to
 $20.5 million from $21.7 million for fiscal 1999.
     On March 31, 2001, the company's Board of Directors authorized a
 stock repurchase program under which the company may repurchase up to
 300,000 common shares.  There is no guarantee as to the exact number of shares
 which will be repurchased by the company and the company may discontinue
 purchases at any time management determines additional purchases are not
 warranted.  As of March 31, 2001, Coldwater Creek had approximately 10.7
 million shares outstanding.
     As previously announced, Coldwater Creek will host a conference call on
 April 11, 2001, at 4:45 p.m. Eastern Time to discuss fiscal
 2000 fourth quarter and full-year results.  To listen to the live Web cast,
 log on to http://www.videonewswire.com/coldwater/041101/ .  The call will be
 archived from approximately one hour after the conference call until midnight
 on April 18, 2001.  This rebroadcast of the call may be accessed by dialing
 719-457-0820, and the passcode "796206."
     The Company's quarterly reporting schedule for fiscal 2001 is as follows:
 
     First Quarter:       June 27, 2001
     Second Quarter:      September 26, 2001
     Third Quarter:       December 19, 2001
     Fourth Quarter: April 10, 2002
 
     Note A:  As required by EITF 00-10, "Accounting for Shipping and Handling
 Fees and Costs", the company has reclassified shipping and handling revenues
 and expenses for all periods presented.  This reporting change reflects the
 effect of reclassifying shipping and handling revenue into sales and the
 associated expenses into cost of sales and related buying and occupancy.
 Additionally, the company has reclassified expenses associated with store
 occupancy and other distribution center costs in order to facilitate peer
 group comparability as we grow the Retail Channel.  Schedules which detail the
 impact of these reclassifications on the Consolidated Statements of Operations
 for fiscal years 2000, 1999 and 1998 are attached to this release.  These
 reclassifications had no impact on the company's net income or earnings per
 share.
     Coldwater Creek is a leading multi-channel retailer of women's apparel,
 jewelry, gift and soft home merchandise through direct-mail catalogs,
 interactive e-commerce web sites at www.coldwatercreek.com and
 www.galleryatthecreek.com, and full-line retail stores located primarily in
 major metropolitan areas.
     This news release contains forward-looking statements, including
 statements regarding the company's future financial and operating results,
 financial position, sales and gross profit trends and expectations.  These
 statements are based on management's current expectations and are subject to a
 number of uncertainties and risks.  Actual results may differ materially.
 These uncertainties and risks include, without limitation, the difficulties in
 forecasting unpredictable customer tastes and buying trends; the difficulties
 inherent in successful catalog management, including timing, mailing and
 postal delivery delays, sizing and merchandising; potential problems
 correlating inventory to customer demand, especially in connection with
 clearance activities; the early stage of the company's Internet business and
 potential failure to generate increased Internet sales; potential cost
 overruns and delays that the company may encounter in launching multiple
 retail stores; fluctuations in operating results; uncertainty of demand for
 the company's products, which may require the company to significantly
 increase promotional costs to increase sales; the general downturn in the U.S.
 economy; the unpredictable and changing buying habits of customers,
 particularly as a result of economic downturn; potential that the mix of the
 company's sales will be weighted more toward clearance merchandise than to
 full price merchandise and related average sale; the potential inability to
 generate sales through promotional activity; the possibility that the company
 may not be able to achieve substantial cost reductions; and other matters
 described in the company's most recent Form 10-K and Forms 10-Q, which are
 available from the United States Securities and Exchange Commission and other
 sources. The company assumes no obligation to update these forward-looking
 statements later in the quarter or provide periodic updates or guidance in
 subsequent quarters.
 
                     COLDWATER CREEK INC. AND SUBSIDIARY
            CONSOLIDATED STATEMENTS OF OPERATIONS AND SUPPLEMENTAL DATA
           (unaudited, in thousands except for per share and ratio data)
 
                                   Three Months Ended     Twelve Months Ended
 
                                     March 3,  Feb. 26,  March 3,  Feb. 26,
     Statements of Operations:        2001       2000      2001       2000
 
     Net sales                       $138,992  $112,652  $458,445   $361,566
     Cost of sales and related
      buying and occupancy             82,118    60,994   255,187    196,281
         Gross profit                  56,874    51,658   203,258    165,285
     Selling, general and
      administrative expenses          56,094    42,150   182,770    143,553
         Income from operations           780     9,508    20,488     21,732
     Interest, net, and other             362       318     1,114        864
     Gain on sale of Milepost Four
      assets                               --        --        --        826
         Income before provision for
          income taxes                  1,142     9,826    21,602     23,422
     Provision for income taxes           370     3,858     8,364      9,251
         Net income                   $   772  $  5,968  $ 13,238   $ 14,171
 
         Net income per share
          - Basic                     $ 0.07   $  0.58   $  1.26    $  1.38
 
         Weighted average shares
          outstanding - Basic         10,615    10,299    10,497     10,236
 
         Net income per share
         - Diluted                    $ 0.07   $  0.56   $  1.22    $  1.34
 
         Weighted average shares
          outstanding - Diluted       10,982    10,686    10,892     10,588
 
 
     Supplemental Data:
                                    Three Months Ended    Twelve Months Ended
                                   March 3,   Feb. 26,      March 3,  Feb. 26,
     Operating Statistics:          2001        2000         2001      2000
 
     Catalogs mailed (a)           39,657      23,141       183,590   139,766
     Active customers (b)                                     2,607     2,189
 
 
                                                            March 3,   Feb. 26,
     Balance Sheet Data:                                        2001     2000
 
     Cash and cash equivalents                               $ 4,600   $ 7,533
     Inventories                                              66,149    60,203
     Current assets                                           89,336    80,821
     Current liabilities                                      50,755    45,787
     Current ratio                                               1.8       1.8
 
     Note (a):  Includes 5,515 catalogs mailed during the additional week
 (53rd week) of fiscal 2000.
     Note (b):  An "active" customer is defined as a customer who has purchased
 merchandise from the Company during the preceding twelve months.
 
 
                      COLDWATER CREEK INC. AND SUBSIDIARY
                          CONSOLIDATED BALANCE SHEETS
                (unaudited, in thousands, except for share data)
 
                            ASSETS
                                                    March 3,      February 26,
                                                      2001            2000
     CURRENT ASSETS:
         Cash and cash equivalents               $    4,600      $    7,533
         Receivables                                  7,077           5,741
         Inventories                                 66,149          60,203
         Prepaid expenses                             3,856           1,319
         Prepaid catalog costs                        5,581           3,994
         Deferred income taxes                        2,073           2,031
 
          Total current assets                       89,336          80,821
 
     Deferred catalog costs                           7,240           2,817
     Property and equipment, net                     55,151          38,895
     Other                                            1,236           1,453
 
          Total assets                           $  152,963      $  123,986
 
                 LIABILITIES AND STOCKHOLDERS' EQUITY
 
     CURRENT LIABILITIES:
         Accounts payable                        $   34,335      $   30,098
         Accrued liabilities                         16,420          13,549
         Income taxes payable                            --           2,140
 
          Total current liabilities                  50,755          45,787
 
     Deferred income taxes                            3,866           1,629
     Deferred rents                                   2,207              --
 
          Total liabilities                          56,828          47,416
 
     Commitments and contingencies                       --              --
 
     STOCKHOLDERS' EQUITY:
         Preferred stock, $.01 par value,
          1,000,000 shares authorized,
          none issued and outstanding                    --              --
         Common stock, $.01 par value,
          60,000,000 shares authorized,
          10,657,324 and 10,319,345
          shares issued and outstanding,
          respectively                                  107             103
         Additional paid-in capital                  47,902          41,579
         Retained earnings                           48,126          34,888
 
          Total stockholders' equity                 96,135          76,570
 
          Total liabilities and
           stockholders' equity                  $  152,963      $  123,986
 
                      COLDWATER CREEK INC. AND SUBSIDIARY
                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                           (unaudited, in thousands)
 
                                                     Twelve Months Ended
                                                    March 3,      February 26,
                                                      2001           2000
 
     OPERATING ACTIVITIES:
     Net income                                   $  13,238       $  14,171
     Non cash items:
         Depreciation and amortization                9,760           7,242
         Deferred income taxes                        2,195          (1,780)
         Gain on sale of Milepost Four
          assets                                         --            (826)
         Other, net                                     230             (30)
     Net change in current assets and
      liabilities:
         Receivables                                    748          (1,881)
         Inventories                                 (5,946)         (4,449)
         Prepaid expenses                               (96)            (85)
         Prepaid catalog costs                       (1,587)            280
         Accounts payable                             4,026          13,012
         Accrued liabilities                          2,871           5,881
         Income taxes payable                        (2,140)         (1,421)
     (Increase) decrease in deferred
      catalog costs                                  (4,423)            378
 
           Net cash provided by operating
            activities                            $  18,876       $  30,492
 
     INVESTING ACTIVITIES:
          Purchase of property and
           equipment                              $ (25,842)      $ (16,647)
          Repayments of (loans to)
           executives                                   161             (77)
          Proceeds from sale of Milepost
           Four assets                                   --           1,546
          Purchase of marketable
           securities                                    --          (2,280)
          Proceeds from sale of marketable
           securities                                    --           2,239
          Proceeds from sale of land                     --             639
 
           Net cash used in investing
            activities                            $ (25,681)      $ (14,580)
 
     FINANCING ACTIVITIES:
         Net repayments under revolving
          line of credit                          $      --       $  (9,938)
         Net proceeds from exercises of
          stock options                               3,925           1,410
         Other financing costs                          (53)             --
 
           Net cash provided by (used in)
            financing activities                  $   3,872       $  (8,528)
 
             Net (decrease) increase in
              cash and cash equivalents              (2,933)          7,384
                 Cash and cash
                  equivalents, beginning              7,533             149
 
             Cash and cash equivalents,
              ending                              $   4,600       $   7,533
 
 
     SUPPLEMENTAL CASH FLOW DATA:
         Cash paid for interest                   $       7       $      47
         Cash paid for income taxes                   8,152          12,656
         Tax benefit from exercises of
          stock options                               2,402             883
         Deferred rent                                2,084              --
 
     The following Consolidated Statements of Operations set forth the
 company's reclassifications of shipping and handling revenues and costs, as
 required by EITF 00-10, "Accounting for Shipping and Handling Fees and Costs,"
 as well as store occupancy costs and other distribution centers costs.
 Pursuant to EITF 00-10, shipping and handling revenues earned, and shipping
 and handling costs incurred, have been reclassified into net sales and cost of
 sales and related buying and occupancy, respectively.  Previously, shipping
 and handling revenues and costs were presented net within selling, general and
 administrative expenses ("SG&A").  Additionally, the company has reclassified
 expenses associated with store occupancy and other distribution center costs
 previously classified in SG&A to cost of sales, in order to facilitate peer
 group comparability as we grow the Retail Channel.  All prior periods have
 been reclassified to be consistent with the current presentation with no
 impact on net income or earnings per share.
 
                      COLDWATER CREEK INC. AND SUBSIDIARY
     CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE FISCAL YEARS 1998 - 2000
              (unaudited, in thousands except for per share data)
 
                                             March 3,     Feb. 26,    Feb. 27,
                                               2001        2000         1999
                                           (53 Weeks)   (52 Weeks)   (52 Weeks)
 
     AS RECLASSIFIED:
 
     Net merchandise sales                 $  414,362  $  328,267   $  325,231
     Shipping and handling revenue             44,083      33,299       30,848
         Net sales                            458,445     361,566      356,079
     Cost of sales and related buying and
      occupancy                               218,442     166,353      164,109
     Shipping and handling costs               36,745      29,928       27,857
         Cost of sales                        255,187     196,281      191,966
         Gross profit                         203,258     165,285      164,113
     Selling, general and administrative
      expenses                                182,770     143,553      145,735
         Income from operations                20,488      21,732       18,378
     Interest, net, and other                   1,114         864         (697)
     Gain on sale of Milepost Four assets          --         826           --
         Income before provision for
          income taxes                         21,602      23,422       17,681
     Provision for income taxes                 8,364       9,251        6,990
         Net income                        $   13,238  $   14,171   $   10,691
 
         Net income per share - Diluted    $     1.22  $     1.34   $     1.02
 
 
                                             March 3,     Feb. 26,    Feb. 27,
                                               2001        2000         1999
                                           (53 Weeks)   (52 Weeks)   (52 Weeks)
 
     AS PREVIOUSLY REPORTED:
 
     Net sales                             $  414,362  $  328,267   $  325,231
     Cost of sales                            202,700     156,186      156,198
       Gross profit                           211,662     172,081      169,033
     Selling, general and administrative
      expenses                                191,174     150,349      150,655
       Income from operations                  20,488      21,732       18,378
     Interest, net, and other                   1,114         864         (697)
     Gain on sale of Milepost Four assets          --         826           --
       Income before provision for income
        taxes                                  21,602      23,422       17,681
     Provision for income taxes                 8,364       9,251        6,990
       Net income                          $   13,238  $   14,171   $   10,691
 
       Net income per share - Diluted      $     1.22  $     1.34   $     1.02
 
 
                      COLDWATER CREEK INC. AND SUBSIDIARY
      QUARTERLY CONSOLIDATED STATEMENTS OF OPERATIONS FOR FISCAL YEAR 2000
              (unaudited, in thousands except for per share data)
 
                                          Q1 2000   Q2 2000   Q3 2000   Q4 2000
                                            (13       (13      (13        (14
                                           Weeks)    Weeks)    Weeks)    Weeks)
 
     AS RECLASSIFIED:
 
     Net merchandise sales               $ 86,891 $ 78,033  $123,698  $125,740
     Shipping and handling revenue          9,649    8,276    12,906    13,252
         Net sales                         96,540   86,309   136,604   138,992
     Cost of sales and related buying
      and occupancy                        46,101   40,360    62,416    69,565
     Shipping and handling costs            8,404    6,435     9,353    12,553
         Cost of sales                     54,505   46,795    71,769    82,118
         Gross profit                      42,035   39,514    64,835    56,874
     Selling, general and administrative
      expenses                             36,351   36,885    53,440    56,094
         Income from operations             5,684    2,629    11,395       780
     Interest, net, and other                 219      329       204       362
         Income before provision for
          income taxes                      5,903    2,958    11,599     1,142
     Provision for income taxes             2,308    1,151     4,535       370
         Net income                      $  3,595 $  1,807  $  7,064  $    772
 
         Net income per share - Dilute   $   0.34 $   0.17  $   0.64  $   0.07
 
 
                                          Q1 2000   Q2 2000   Q3 2000   Q4 2000
                                            (13       (13      (13        (14
                                           Weeks)    Weeks)    Weeks)    Weeks)
 
     AS PREVIOUSLY REPORTED:
 
     Net sales                           $ 86,891  $ 78,033  $123,698  $125,740
     Cost of sales                         42,971    36,977    58,323    64,429
       Gross profit                        43,920    41,056    65,375    61,311
     Selling, general and administrative
      expenses                             38,236    38,427    53,980    60,531
       Income from operations               5,684     2,629    11,395       780
     Interest, net, and other                 219       329       204       362
       Income before provision for
        income taxes                        5,903     2,958    11,599     1,142
     Provision for income taxes             2,308     1,151     4,535       370
       Net income                        $  3,595  $  1,807  $  7,064  $    772
 
       Net income per share - Diluted    $   0.34  $   0.17  $   0.64  $   0.07
 
 
                      COLDWATER CREEK INC. AND SUBSIDIARY
      QUARTERLY CONSOLIDATED STATEMENTS OF OPERATIONS FOR FISCAL YEAR 1999
              (unaudited, in thousands except for per share data)
 
                                          Q1 1999   Q2 1999   Q3 1999   Q4 1999
                                            (13       (13      (13        (13
                                            Weeks)    Weeks)   Weeks)    Weeks)
 
     AS RECLASSIFIED:
 
     Net merchandise sales               $ 65,135 $ 59,812  $101,190  $102,130
     Shipping and handling revenue          6,822    5,889    10,066    10,522
         Net sales                         71,957   65,701   111,256   112,652
     Cost of sales and related buying and
      occupancy                            32,889   32,088    50,631    50,745
     Shipping and handling costs            5,504    5,139     9,036    10,249
         Cost of sales                     38,393   37,227    59,667    60,994
         Gross profit                      33,564   28,474    51,589    51,658
     Selling, general and administrative
      expenses                             30,997   27,067    43,339    42,150
         Income from operations             2,567    1,407     8,250     9,508
     Interest, net, and other                  46      161       339       318
     Gain on sale of Milepost Four assets      --      826        --        --
         Income before provision for
          income taxes                      2,613    2,394     8,589     9,826
     Provision for income taxes             1,044      948     3,401     3,858
         Net income                      $  1,569 $  1,446  $  5,188  $  5,968
 
         Net income per share - Diluted  $   0.15 $   0.14  $   0.49  $   0.56
 
                                          Q1 1999   Q2 1999   Q3 1999   Q4 1999
                                            (13      (13       (13       (13
                                           Weeks)   Weeks)     Weeks)    Weeks)
 
     AS PREVIOUSLY REPORTED:
 
     Net sales                           $ 65,135 $ 59,812  $101,190  $102,130
     Cost of sales                         30,941   29,883    48,045    47,317
         Gross profit                      34,194   29,929    53,145    54,813
     Selling, general and administrative
      expenses                             31,627   28,522    44,895    45,305
         Income from operations             2,567    1,407     8,250     9,508
     Interest, net, and other                  46      161       339       318
     Gain on sale of Milepost Four assets      --      826        --        --
         Income before provision for
          income taxes                      2,613    2,394     8,589     9,826
     Provision for income taxes             1,044      948     3,401     3,858
         Net income                      $  1,569 $  1,446  $  5,188  $  5,968
 
         Net income per share - Diluted  $   0.15 $   0.14  $   0.49  $   0.56
 
                      COLDWATER CREEK INC. AND SUBSIDIARY
      QUARTERLY CONSOLIDATED STATEMENTS OF OPERATIONS FOR FISCAL YEAR 1998
              (unaudited, in thousands except for per share data)
 
                                           Q1 1998   Q2 1998   Q3 1998  Q4 1998
                                            (13        (13       (13     (13
                                            Weeks)    Weeks)    Weeks)  Weeks)
 
     AS RECLASSIFIED:
 
     Net merchandise sales                 $ 79,937 $ 60,952 $ 94,730 $ 89,613
     Shipping and handling revenue            8,043    5,754    8,348    8,703
         Net sales                           87,980   66,706  103,078   98,316
     Cost of sales and related buying and
      occupancy                              40,064   32,680   47,659   43,707
     Shipping and handling costs              6,395    4,592    7,373    9,498
         Cost of sales                       46,459   37,272   55,032   53,205
         Gross profit                        41,521   29,434   48,046   45,111
     Selling, general and administrative
      expenses                               40,099   28,226   40,157   37,252
         Income from operations               1,422    1,208    7,889    7,859
     Interest, net, and other                  (247)    (278)    (343)     171
         Income before provision for income
          taxes                               1,175      930    7,546    8,030
     Provision for income taxes                 472      374    3,033    3,111
         Net income                         $   703  $   556 $  4,513 $  4,919
 
         Net income per share - Diluted     $  0.07  $  0.05 $   0.43 $   0.48
 
                                            Q1 1998   Q2 1998  Q3 1998  Q4 1998
                                              (13      (13      (13      (13
                                             Weeks)    Weeks)   Weeks)   Weeks)
 
     AS PREVIOUSLY REPORTED:
 
     Net sales                              $79,937  $60,952  $94,730  $89,613
     Cost of  sales                          38,125   30,968   45,747   41,359
         Gross profit                        41,812   29,984   48,983   48,254
     Selling, general and administrative
      expenses                               40,390   28,776   41,094   40,395
         Income from operations               1,422    1,208    7,889    7,859
     Interest, net, and other                  (247)    (278)    (343)     171
         Income before provision for income
          taxes                               1,175      930    7,546    8,030
     Provision for income taxes                 472      374    3,033    3,111
         Net income                         $   703  $   556  $ 4,513  $ 4,919
 
         Net income per share - Diluted     $  0.07  $  0.05  $  0.43  $  0.48
 
     CONTACT:  David Gunter, Director of Corporate Communications & Investor
 Relations of Coldwater Creek Inc., 208-265-3944.
 
 SOURCE  Coldwater Creek Inc.

RELATED LINKS

http://www.coldwater-creek.com