Coldwater Creek Inc. under Shareholder Investigation

An investigation on behalf of investors in Coldwater Creek Inc. (Public, NASDAQ:CWTR) over potential violations of Federal Securities laws by Coldwater Creek Inc announced.

According to the investigation by a law firm the investigation focuses on the following events. On November 24, after the market closed, Coldwater Creek report its third quarter financial results for the period ended October 31, 2009 that missed analysts expectations, including a third quarter net loss of $34 million per share. During the conference call held the same day the Coldwater Creek stated as follows:

“Last year, Coldwater Creek was focused on reducing promotional levels and driving full price sales. However, we moved away from this strategy late last year in response to the challenging economic environment. In addition, we also expanded our value pricing initiative, while at the same time continuing to offer more promotional discounts as well as our traditional October sale event.While this strategy was successful at driving traffic and sales, the combination of substantial value pricing, discounting through promotions and an unsuccessful October sale led to more significant market deterioration than we had originally anticipated. Overall, our promotional strategy was too aggressive as our product was on trend and resonated well with our customers”.

On November 25, 2009, Coldwater Creek’s common stock declined by $0.76 per share, or 14.2%, to close at $4.49 per share on substantially greater than average volume. Coldwater Creek Inc., located in Sandpoint, ID, is a specialty retailer of women's apparel, accessories, jewelry and gift items. Coldwater Creek operates in two segments: retail and direct. Its retail segment consists of retail stores and outlet stores along with its day spa locations, while the direct segment includes direct-to-consumer business through e-commerce and phone and mail operations. Coldwater Creek reported on February 02, 2008 for the past 52weeks Total Revenue of $1.15147billion and on January 31, 2009 for the past 52weeks Total Revenue of $1.024.22billion. Shares of Coldwater Creek (CWTR) traded recently at $4.54 per share, down from its 52weekHigh of $9.20 per share, over $24 per share in 2007 and over $30 per share in 2006.