NEW YORK (AP) -- Coldwater Creek's stock rose as much as 20 percent on Thursday as the retailer's fiscal fourth-quarter results topped analysts' estimates.
THE SPARK: The company, which sells women's clothing and accessories, reported late Wednesday an adjusted loss of 65 cents per share on revenue of $220.8 million for the three months ended Feb. 2. Analysts polled by FactSet expected a loss of 79 cents per share on revenue of $218.8 million.
Revenue in stores open at least a year rose 2.7 percent during the quarter. The measure, which removes the impact of locations that have recently opened or closed, is a key metric of a retailer's health.
For the first quarter Coldwater Creek, anticipates an adjusted loss of 60 cents to 80 cents per share. Wall Street predicts a loss of 71 cents per share, on average. It also expects revenue in stores open at least a year to decline in the low single digits.
The Sandpoint, Idaho-based company operated 349 stores at the end of its fiscal year, and it plans to close up to 15 locations this year.
THE ANALYSIS: Jeff Van Sinderen of B. Riley Caris said in a client note that Coldwater Creek has a chance to expand its operating margins thanks to its loyal customer base, improving merchandise and respectable brand.
The analyst reiterated a "Buy" rating but lowered the company's price target to $4 from $7.90.
SHARE ACTION: Shares of Coldwater Creek Inc. gained 33 cents, or 10 percent, to $3.54 in afternoon trading after rallying 63 cents earlier. The stock has traded in a range of $1.80 and $5.85 over the past year.