Coldwater Creek (FRA:UC41) Operating Income : €-59.9 Mil (TTM As of Oct. 2013)

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What is Coldwater Creek Operating Income?

Coldwater Creek's Operating Income for the three months ended in Oct. 2013 was €-18.6 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Oct. 2013 was €-59.9 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Coldwater Creek's Operating Income for the three months ended in Oct. 2013 was €-18.6 Mil. Coldwater Creek's Revenue for the three months ended in Oct. 2013 was €113.2 Mil. Therefore, Coldwater Creek's Operating Margin % for the quarter that ended in Oct. 2013 was -16.41%.

Coldwater Creek's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Coldwater Creek's annualized ROC % for the quarter that ended in Oct. 2013 was -54.42%. Coldwater Creek's annualized ROC (Joel Greenblatt) % for the quarter that ended in Oct. 2013 was -65.87%.

Coldwater Creek Operating Income Historical Data

The historical data trend for Coldwater Creek's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Coldwater Creek Operating Income Chart

Coldwater Creek Annual Data

Trend

Jan04

Jan05

Jan06

Jan07

Jan08

Jan09

Jan10

Jan11

Jan12

Jan13

Operating Income

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-34.89

-31.67

-31.77

-74.52

-51.65

Coldwater Creek Quarterly Data
	Jan09	Apr09	Jul09	Oct09	Jan10	Apr10	Jul10	Oct10	Jan11	Apr11	Jul11	Oct11	Jan12	Apr12	Jul12	Oct12	Jan13	Apr13	Jul13	Oct13
Operating Income	Get a 7-Day Free Trial															-7.74	-13.81	-13.36	-14.15	-18.58

Coldwater Creek Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Oct. 2013 adds up the quarterly data reported by the company within the most recent 12 months, which was €-59.9 Mil.

Coldwater Creek (FRA:UC41) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Coldwater Creek's annualized ROC % for the quarter that ended in Oct. 2013 is calculated as:

	ROC % (Q: Oct. 2013 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jul. 2013 )	+	Invested Capital (Q: Oct. 2013 ))	/ count )
=	-74.316 * ( 1 - -12.53% )	/	( (161.684	+	145.675)	/ 2 )
=	-83.6277948	/	153.6795
=	-54.42 %

where

	Invested Capital		(Q: Jul. 2013 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	248.374	-	79.235	-	( 13.195	-	max(0, 119.64	-	127.095	+	13.195	))
=	161.684

	Invested Capital		(Q: Oct. 2013 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	243.33	-	92.831	-	( 4.974	-	max(0, 131.727	-	136.551	+	4.974	))
=	145.675

Note: The Operating Income data used here is four times the quarterly (Oct. 2013) data.

2. Joel Greenblatt's definition of Return on Capital:

Coldwater Creek's annualized ROC (Joel Greenblatt) % for the quarter that ended in Oct. 2013 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Oct. 2013 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jul. 2013		Q: Oct. 2013
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-74.316	/	( ( (116.668 + max(4.374, 0))	+	(94.664 + max(9.928, 0)) )	/	2 )
=	-74.316	/	( ( 121.042	+	104.592 )	/	2 )
=	-74.316	/	112.817
=	-65.87 %

where Working Capital is:

	Working Capital		(Q: Jul. 2013 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(2.898	+	94.643	+	14.471)	-	(79.235	+	19.139	+	9.264)
=	4.374

	Working Capital		(Q: Oct. 2013 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(4.03	+	111.956	+	14.217)	-	(92.831	+	24.402	+	3.042)
=	9.928

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Oct. 2013) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Coldwater Creek's Operating Margin % for the quarter that ended in Oct. 2013 is calculated as:

Operating Margin %	=	Operating Income (Q: Oct. 2013 )	/	Revenue (Q: Oct. 2013 )
	=	-18.579	/	113.238
	=	-16.41 %

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Coldwater Creek Operating Income Related Terms

Thank you for viewing the detailed overview of Coldwater Creek's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.

Coldwater Creek (FRA:UC41) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Coldwater Creek Inc (FRA:UC41) » Definitions » Operating Income

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Address

Website

http://www.coldwatercreek.com

Coldwater Creek was founded in 1984. The Company is a specialty retailer of women's apparel, accessories, jewelry, and gift items. The Company's proprietary merchandise assortment reflects a sophisticated yet relaxed and casual lifestyle. A commitment to providing superior customer service is manifest in all aspects of its business. It conducts business in two operating segments: retail and direct. The retail segment consists of premium retail stores, factory outlet stores, and day spas. The direct segment consists of sales generated through its e-commerce website and from orders taken from customers over the phone and through the mail. Retail Segment - As of February 2, 2013, it operated 349 premium retail stores throughout the United States at an average size of approximately 5,700 square feet per store. The Company also operates its Coldwater Creek, The Spa concept in 8 locations. These day spas offer a complete menu of spa treatments, including massages, facials, body treatments, manicures and pedicures. In addition to spa treatments, the day spas carry an assortment of relevant apparel as well as lines of personal care products. The Company's day spas are staffed with experienced professionals in all treatment areas. Direct Segment - It use its e-commerce website, www.coldwatercreek.com, to cost-effectively reach its customer base and provide another convenient shopping alternative for customers. The website features the entire full-price merchandise offering found in its catalogs and also serves as an efficient promotional vehicle for the clearance of excess inventory. The women's retail apparel market is highly competitive. Competitors range from specialty apparel retail companies such as Chico's FAS, Inc. (Chico's), The Talbots, Inc. (Talbots), Christopher & Banks Corporation (Christopher & Banks) and ANN INC., to small single channel catalog, e-commerce and retail store companies. The Company's registered trademarks include Coldwater Creek, Coldwater Creek The Spa and the stylized Coldwater Creek logo.

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