Coldwater Creek Inc. (CWTR, Financial) filed Quarterly Report for the period ended 2009-08-01.
Coldwater Creek Inc. is a specialty direct mail retailer of apparel gifts jewelry and home furnishings. The company markets itsmerchandise primarily through three distinct catalogs. Northcountry is the company's core catalog and features casual comfortable apparel hard-to-find jewelry distinctive artwork gifts and items for the home. The company's premium catalog for women Spirit of the West features fashionable upscale apparel and hard-to-find jewelry and accessories. The company also maintains an interactive Internet commerce web site. Coldwater Creek Inc. has a market cap of $655 million; its shares were traded at around $7.17 with and P/S ratio of 0.6.
On February 13, 2009, we entered into a secured Credit Agreement with Wells Fargo Retail Finance, LLC. This credit facility replaced our previous unsecured revolving line of credit with Wells Fargo Bank, N.A. Our new agreement provides a revolving line of credit up to $70 million, with subfacilities for the issuance of up to $70.0 million in letters of credit and swingline advances of up to $10.0 million.
In addition, shipping fees received from customers for delivery of merchandise decreased by $1.4 million from $6.5 million for the three months ended August 2, 2008, to $5.1 million for the three months ended August 1, 2009, which is associated with lower order volume.
Revenue from our co-branded credit card program remained relatively flat, increasing $0.3 million for the three months ended August 1, 2009, as compared with the same period in 2008. As part of the co-branded credit card program, we received revenue sharing payments of approximately $6.5 million and $2.9 million during the three months ended August 1, 2009 and August 2, 2008, respectively. The amount of revenue sharing recognized as revenue during the three months ended August 1, 2009 and August 2, 2008 was approximately $1.6 million and $0.6 million, respectively. The amount of sales royalty and marketing fees revenue recognized as revenue during the three months ended August 1, 2009 and August 2, 2008 was approximately $2.1 million and $2.8 million, respectively.
Additionally, net sales from merchandise clearance outlet stores decreased $0.7 million, which includes the addition of four outlet stores and the closure of one, in the three months ended August 1, 2009 as compared with the three months ended August 2, 2008. Net sales generated from our day spas decreased $0.5 million for the three months ended August 1, 2009 as compared with the three months ended August 2, 2008.
The direct segment net sales decreased $10.3 million during the three months ended August 1, 2009 as compared to the three months ended August 2, 2008. Sales through our Internet channel decreased $8.2 million from $39.4 million for the three months ended August 2, 2008 to $31.2 million for the three months ended August 1, 2009. Sales from our phone and mail channel for the same period decreased $2.1 million from $12.7 million to $10.6 million.
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Coldwater Creek Inc. is a specialty direct mail retailer of apparel gifts jewelry and home furnishings. The company markets itsmerchandise primarily through three distinct catalogs. Northcountry is the company's core catalog and features casual comfortable apparel hard-to-find jewelry distinctive artwork gifts and items for the home. The company's premium catalog for women Spirit of the West features fashionable upscale apparel and hard-to-find jewelry and accessories. The company also maintains an interactive Internet commerce web site. Coldwater Creek Inc. has a market cap of $655 million; its shares were traded at around $7.17 with and P/S ratio of 0.6.
Highlight of Business Operations:
In addition, we have carefully evaluated our entire organization to determine where we can improve operational efficiencies. We remain focused on further reducing our cost structure and preserving capital as business conditions warrant. During the second quarter of fiscal 2009, our cost control efforts resulted in decreased selling, general and administrative expense (SG&A) of approximately $5.7 million compared to the second quarter of fiscal 2008. This decrease is primarily the result of lower employee expense as a result of the realignment of retail operations staffing and the elimination of certain corporate support positions during fiscal 2008. We believe that these select staff reductions, as well as reduced travel, lower catalog page counts, more cost effective advertising and other cost savings initiatives put us on track to achieve our goal of reducing SG&A expenses by approximately $30 million for the full year of fiscal 2009.On February 13, 2009, we entered into a secured Credit Agreement with Wells Fargo Retail Finance, LLC. This credit facility replaced our previous unsecured revolving line of credit with Wells Fargo Bank, N.A. Our new agreement provides a revolving line of credit up to $70 million, with subfacilities for the issuance of up to $70.0 million in letters of credit and swingline advances of up to $10.0 million.
In addition, shipping fees received from customers for delivery of merchandise decreased by $1.4 million from $6.5 million for the three months ended August 2, 2008, to $5.1 million for the three months ended August 1, 2009, which is associated with lower order volume.
Revenue from our co-branded credit card program remained relatively flat, increasing $0.3 million for the three months ended August 1, 2009, as compared with the same period in 2008. As part of the co-branded credit card program, we received revenue sharing payments of approximately $6.5 million and $2.9 million during the three months ended August 1, 2009 and August 2, 2008, respectively. The amount of revenue sharing recognized as revenue during the three months ended August 1, 2009 and August 2, 2008 was approximately $1.6 million and $0.6 million, respectively. The amount of sales royalty and marketing fees revenue recognized as revenue during the three months ended August 1, 2009 and August 2, 2008 was approximately $2.1 million and $2.8 million, respectively.
Additionally, net sales from merchandise clearance outlet stores decreased $0.7 million, which includes the addition of four outlet stores and the closure of one, in the three months ended August 1, 2009 as compared with the three months ended August 2, 2008. Net sales generated from our day spas decreased $0.5 million for the three months ended August 1, 2009 as compared with the three months ended August 2, 2008.
The direct segment net sales decreased $10.3 million during the three months ended August 1, 2009 as compared to the three months ended August 2, 2008. Sales through our Internet channel decreased $8.2 million from $39.4 million for the three months ended August 2, 2008 to $31.2 million for the three months ended August 1, 2009. Sales from our phone and mail channel for the same period decreased $2.1 million from $12.7 million to $10.6 million.
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