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Profit up at Coldwater Creek


Sandpoint, Idaho Coldwater Creek posted a profit in its second quarter on a rise in revenue, beating the Street's expectations for another loss. The company on Wednesday reaffirmed its guidance for the year and said its margins will improve as it benefits from inventory control.

For the three months that ended July 31, Coldwater Creek said its net income was $1.5 million, compared with a loss of $4.9 million in the year-ago period.

Revenue rose 12.6% to $253.5 million, from $225.2 million last year.

The company opened five new retail stores in the quarter to finish with 364 locations. It is on track to open 20 new stores this fiscal year.

President and CEO Dennis Pence said the company is making progress with its inventory -- a key concern for retailers as they deal with the new reality of frugal shoppers.

He said the company's fall merchandise is strong and Coldwater Creek expects increased margins in the second half of the year as its inventory remains conservative and the company focuses on expenses.

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