Apparel retailer Coldwater Creek Inc reported financial results for the three-month period ended April 29th 2006.
The net income for the three-month period ended April 29th 2006, increased $3.1 million to $11.6 million compared with net income of $8.5 million for the three-month period ended April 30th 2005. Net sales in the fiscal 2006 first quarter increased 38.3 percent to $215.3 million from $155.6 million in the fiscal 2005 first quarter.
The company also announced that it would restate its fiscal 2005 financial statements to correct the manner in which it accounts for non-refundable marketing fees received from its credit card issuer in conjunction with its co-branded credit card program.
As previously disclosed in the company's prior SEC filings, these fees were recognized as revenue during the period in which a customer's co-branded credit card was issued and activated. Going forward, revenue associated with the marketing fees will be deferred and recognized over future reporting periods. As a result of the restatement, net income per share for fiscal 2005 will decrease by approx. $0.06.
Net income per share for the second, third and fourth quarters of fiscal 2005 will decrease by approx. $0.01, $0.02 and $0.03, respectively. Net sales for fiscal 2005 will decrease by approx. $8.5 million. Net sales for the second, third and fourth quarters of fiscal 2005 will decrease by approx. $1.3 million, $3.3 million and $3.9 million, respectively.
marketing@alchempro.com
