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The following information contains forward-looking statements, including statements regarding our
plans to revitalize our product appeal and improve our financial performance. These forward-looking
statements are based on Managements current expectations and beliefs, as well as a number of
assumptions, estimates and projections concerning future events. These statements are subject to
risks, uncertainties, assumptions and other important factors, many of which are outside
Managements control, that could cause actual results to differ materially from the results discussed
in the forward-looking statements. You are cautioned to review the risks identified in our SEC
reports and not to put undue reliance on such forward-looking statements because actual results
may vary materially from those expressed or implied.
All forward-looking statements are based on information available to Management on this date, and
Coldwater Creek Inc. assumes no obligation to, and expressly disclaims any obligation to, update or
revise any forward-looking statements, whether as a result of new information, future events or
otherwise. We operate on a fiscal calendar widely used in the retail industry that results in a given
fiscal year consisting of a 52- or 53-week period ending on the Saturday closest to January 31 of
the following year. For example, references to fiscal 2010 refer to the fiscal year ended January
29, 2011.
Coldwater Creek is
committed to
creating a unique
and personal brand
experience that
reflects the multiple
facets of our
customers lifestyle,
recognizes her
individuality, and
delights her with
meaning and
inspiration.
Retail
E-Commerce
www.coldwatercreek.com
9 Day Spas
Catalog
LTM Q3 2011 circulation
of 65 million
Key traffic driver for
stores and e-commerce
OUR CUSTOMER
Typically between the ages of 45-65
Her average household income
exceeds $75,000
She is college educated
She sees age as an attitude, not a
number
She loves print, pattern and color
in her wardrobe
She is looking for fits that flatter
and styles that are age appropriate
OUR HISTORY
Historical
Historical Timeline
Timeline
Successful store
growth period
1999
Opened first
premium retail stores
2000
2006
Reached $1 billion in
sales and $520 in SSF
2010
2011
Hired new management
team to execute
turnaround
Premium
Premium Store
Store Sales
Sales Per
Per Square
Square Foot
Foot
$600
$516
$520
$456
$400
$350
$336
$303
FY2008
FY 2009
FY 2010
$200
$FY 2005
FY 2006
FY 2007
Note: Our fiscal year ends on the Saturday closest to January 31 of the following year.
ROADMAP TO A TURNAROUND
Phase 1
Phase 2
Phase 3
Implemented inventory
management
disciplines
Revitalize product
appeal
Leverage supply
chain efficiencies
Begin to implement
new merchandising
direction
Improve financial
performance
Expand implementation
of Made For Outlet
product strategy
Evaluate opportunity
to grow outlet store
base
Reevaluate smaller
market growth
opportunity
2011
2012
BALANCE CATEGORY
INVESTMENTS
Reduce Assortment Volatility
INVENTORY PRODUCTIVITY
10
Consistent execution of
compelling outfits with focus on
the target customer
11
Design & develop into franchise fabrications & yarns, projected over multiple seasons
12
Financial Highlights
Jim Bell, Chief Financial Officer
14
Restore gross margins via leaner inventory buys and higher regular price sell through
Mitigate costs and reduce sourcing cycle time by refining supply chain strategies
48.2%
GROSS MARGIN
44.6%
39.1%
42.6%
34.2%
36.9%
32.2%
31.3%
27.1%
31.3%
25.6%
20.0%
FY 2006
FY 2007
FY2008
FY 2009
FY 2010
LTM Q3 2011
Note: Our fiscal year ends on the Saturday closest to January 31 of the following year.
15
Strategy for more frequent product flows and a renewed focus on product lifecycles
and seasonal timelines
INVENTORY TURNS
6.0
5.0
4.7
4.7
4.8
4.6
3.9
4.0
3.0
2.0
FY 2006
FY 2007
FY 2008
FY 2009
FY 2010
16
Removed approximately $125 million of SG&A from model from FY 2007 to LTM Q3
2011
$500.0
$460.9
2007
2
2007 010 Sales
C
2010
SG&A AGR: (5.2
%
CAGR
: (8.7 )
%)
50.0%
$450.0
$400.0
$350.0
$300.0
$396.8
$387.1
40.0%
$336.5
$373.5
$350.7
38.7%
36.7%
36.0%
35.7%
FY 2009
FY 2010
45.0%
40.0%
42.0%
$250.0
$124.4M
reduction
in SG&A
35.0%
30.0%
FY 2006
FY 2007
FY2008
OperatingExpenses
LTM Q3 2011
%toSales
Note: Our fiscal year ends on the Saturday closest to January 31 of the following year.
17
3
8
4
40
14
12
17
5
20
11
11
3
11
12
10
4
2
8
15
2
7
7
2
35
16
9
3
3
9
1
3
2
2
11
2
3
14
4
28
110 stores
1120 stores
2130 stores
30+ stores
2011
5 new stores / close 15 stores
2012
Close 15 stores
Q4 2011 OUTLOOK
19
COMPANY HIGHLIGHTS
New talent in place with extensive industry
experience to execute revitalized merchandising
strategy
Proven multi-channel distribution model
Significant margin expansion opportunity as a result
of highly leveragable infrastructure
Significant investments made in people, processes
and systems designed to drive future sales growth
and margin improvement
High brand awareness developed through long history
of great product and stellar customer service
Exceptionally loyal and distinguished customer
base
20