Coldwater Creek
| Private | |
| Industry | clothing |
| Founded | 1984 by Dennis and Ann Pence |
| Headquarters | Hingham, Massachusetts |
|
Key people
|
Dave Walde: Chief Executive Officer, Brenda Koskinen: President & Chief Merchandising Officer |
| Revenue | $742 million USD (2013) |
| Owner | Sycamore Partners |
|
Number of employees
|
100 |
| Website | www |
Coldwater Creek is an American catalog and online retailer of women’s apparel, accessories and home décor.
In 1984, Dennis and Ann Pence relocated from Manhattan to the resort town of Sandpoint in northern Idaho to start a direct mail business. They bootstrapped the business with savings of only $40,000. Early catalogs were printed in one color by the local newspaper. In the early days the two founders did everything, putting an extension cord on their telephone so they could take customer orders throughout the tiny condo they worked from.
The first four-color catalog, called Northcountry, was published in 1985. Writing and design were handled in house, leveraging Ann's background as a Copy Director for Macy's. Northcountry took a very unusual approach, showing apparel without models and describing product with very colorful prose. By 1986 the company had achieved profitability and had fewer than 10 employees.
By 1990, millions of catalogs were being mailed to its own customers and rented mailing lists. In 1991 and 1992 major investments were made in upgrading computer systems and new executives were hired to help manage growth. In 1991 revenues had reached approximately $11 million delivering a profit of $1.6 million. Sales were $18.8 million in 1992.
In 1993 the company launched a second catalog title, called Spirit of the West. A third catalog title, Ecosong, was added in 1994 along with the Coldwater Creek Credit Card.
Between 1994 and 1996 the company invested heavily in information technology along with distribution and call center capacity. A new call center was opened in Coeur d'Alene, ID. In addition, the company's first retail store was opened in Sandpoint, ID. The company achieved sales of $75.9 million and earnings of $5.6 million in 1995.
In its 1996 earnings release CEO Dennis Pence said "This year marks the sixth consecutive year of growth for the Company....". Sales grew 88.5% from the prior year, coming in at $143.1 million. Net Income was $7.7 million. The company launched a fourth catalog title, Milepost Four, targeting men. The title was sold to another company a few years later.
In 1997 the company raised $37.5 million through an IPO. Dennis and Ann Pence retained 75% ownership of the company. By that year 10% of the company's sales were coming from Japan and Canada. Sales for the year grew by a torrid 72.4%, reaching $246.7 million. Net income came in at $11.7 million.
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Wikipedia