The name Coldwater Creek
Coldwater Creek's fourth-quarter profit increased a whopping 66% to $18.9 million, or $0.20 per share, with sales up 41% to $287.9 million. The company's quarterly earnings beat analysts' estimates by $0.03 per share.
Other elements look pretty attractive, too. Coldwater Creek's got $131.9 million in cash and no debt. Its gross margin in the fourth quarter climbed to 46%, from 42.3% in the same quarter last year, which the company attributed to increased merchandise margins and full-price merchandise sales. Inventory increased 35.4%, which is less than sales growth, and that's just what retail investors like to see; Coldwater Creek said the increase was attributable to the addition of 60 stores since the end of fiscal 2004.
Coldwater Creek may not be a stock on the tip of everybody's tongue -- companies like Gap
Chico's, of course, is one of the names that gets a lot of buzz -- here's a flashback to its most recent quarter. These companies also compete with Talbots
Coldwater Creek may not be the company that gets the most word of mouth, but its stock price has been steadily increasing over the course of the last year, so it's obvious that somebody's paying attention. This chart tells the story. And of course, at my most recent check, Coldwater shares had increased just shy of 17%. While investors have reason for optimism today -- and its consequently high P/E is higher than its expected growth -- it stands to reason that investors who wait until the euphoria dies down might find a better bargain. Regardless, though, there's no question that Coldwater Creek looks pretty hot.
For related stories, see the following Foolish coverage:
- Investors tried on rival Talbots recently.
- Check out Chico's latest quarter.
- Coldwater showed sizzling signs last fall.
Alyce Lomax does not own shares of any of the companies mentioned.