This summary is based on the third quarter fiscal 2007 earnings call conducted by Coldwater Creek Inc. (CWTR: chart) on November 28, 2007.

President and COO: Daniel Griesemer
Sr. VP and CFO: Tim Martin
President and Chief Merchandising Officer: Georgia Shonk-Simmons
Director of Investor Relations: Marie Hirsch

Key Investors Issues

- The net loss was 7 cents per share as against a net income of 17 cents in prior year.
- Quarterly revenue rose to $271 million from $256 million in previous year.
- At the end of Q3, the company had a cash position of $82 million versus $108 million in last year.

Third Quarter Fiscal 2007 Financial Highlights

The firm incurred a net loss of $6.2 million or 7 cents per share.

This represents a decrease of $22.1 million from the net income of $15.9 million or 17 cents per share for the three months period ended October 28, 2006.

Net income for the nine month period ended November 3, 2007 decreased $24.9 million or 63.2% to approximately $14.5 million or 15 cents per diluted share, compared with net income of approximately $39.5 million or 42 cents per diluted share for the nine month period ended October 28, 2006.

Consolidated net sales in the third quarter increased nearly 6% to $271 million from $256 million in the third quarter of 2006.

Net sales from the retail segment, which includes the company''s premium retail stores, outlet stores, and day spa test concept locations, increased 11% to $186 million in the third quarter from $168 million in the third quarter of 2006. Retail segment net sales represented 69% of the company''s total net sales in the third quarter, compared with 65% in the third quarter of 2006.

The company opened 34 retail stores during the quarter for a total of 294 premium retail stores in operation at the end of the period, compared with 225 premium retail stores at the same period last year. Comparable store sales decreased 13.6% for the third quarter, compared with 9.9% increase in the prior year period. Comparable stores traffic was down in the high-single digit range, while conversion rate was approximately up 200 basis points.

In Direct segment, net sales decreased nearly 5% to $85 million in the quarter from $89 million in the third quarter 2006. Direct segment net sales represented approximately 31% of the company''s total net sales in the quarter compared with a nearly 35% in the third quarter of 2006. The Internet business increased more than 4% to $62 million in the quarter from $60 million in the third quarter of 2006. Internet net sales represented approximately 73% of the direct segment''s net sales, compared with nearly 67% in the same period of 2006. Internet net sales remained flat year-over-year at approximately 23% of the company''s total net sales. Phone and mail net sales decreased nearly 23% to approximately $23 million in the quarter from $29 million in the third quarter of 2006. Phone and mail sales represented 27% of the direct sales segment''s net sales in the quarter, compared with 33% in the same period in 2006. Phone and mail sales represented 8% of the total net sales for the quarter compared with 12% in the third quarter of 2006.

Gross profit for the quarter was $107.8 million or 39.8% of net sales, compared with $120.8 million or 47.1% of net sales for the third quarter of 2006.

The decreasing gross profit rate was primarily due to the increase in promotional activities during the third quarter.

Selling, general and administrative expenses for the quarter were $118 million or 43.6% of net sales, compared with $96 million or 37.6% of net sales for the third quarter 2006.

The 600 basis point increase in SG&A expenses was primarily driven by the decrease in comparable stores sales accompanied by the cost associated with retail expansion.

The company incurred a loss from operations for the third quarter of $10.3 million.

This compares to income from operations of $24.3 million or 9.5% of net sales for the third quarter of 2006.

At the end of the quarter, the company had no short or long-term borrowings and a cash position of $82 million, compared to $108 million at the end of the third quarter of 2006.

The decrease in the cash position was a result of the strategic decision to take advantage of early payment discounts on approximately $28 million of inventory purchases that would otherwise have been paid for in the fourth quarter. In addition, the cash balance represents approximately $8 million in common stock repurchase activity.