Net income for the fourth quarter climbed to $7.5 million, or 20 cents per diluted share, compared with $11.4 million, or 12 cents per diluted share, for the comparable period a year ago. For the year, net income jumped to $46.8 million, 50 cents per share, from $29.1 million, or 32 cents per share, for the previous year.

On the sales side, Coldwater Creek registered gains almost equally dramatic. Net sales in the fiscal 2005 fourth quarter increased 41% percent to $287.9 million and for the year they climbed 33.5% to $788.2 million.

Dennis Pence, chairman and CEO, attributed the quarterly results to "a combination of compelling merchandise and the effectiveness of our triple-channel marketing strategy," a reference to the company's retail stores, Internet sales and catalog operations. The company also benefited from a national magazine advertising campaign that generated increased customer traffic in all three channels, Pence said.

Having opened 11 new stores during the fourth quarter and 60 during the year, Coldwater Creek finished the year with 174 locations, a figure that achieved the company's goal of having 174 locations in place for the holiday selling season, Pence said. The Coldwater Creek chief says the company believes that "the positive impact of an expanding store base, combined with brand-building initiatives," is increasing its market share and "taking us closer to the goal of establishing us as one of the premier specialty retailers in the US."

Coldwater Creek's economic model is based on achieving sales of $500 per sf in all stores by the third year of each store's operations, Pence said. "We believe we are meeting our store economic model across the entire company and country in all markets," he commented. In addition to its existing retail stores, the chain this spring will launch the first of its previously announced Coldwater Creek Spa locations.

The day spas will offer massages, facials, manicures and pedicures and will average 5,000 sf, about the size of a Coldwater Creek retail store. Along with the spa services, the new Coldwater Creek concept will carry clothing and personal care products for women. The company's strategy is based on the belief that its target market for clothing, women ages 35 to 60 with average household incomes in excess of $75,000, is also a good target for spa services.

In addition to its focus on expanding the retail chain and launching the spa format, Pence noted, Coldwater Creek is pursuing its Internet channel market. It now has nearly 2.9 million active email addresses of customers and potential customers, he said, with nearly 70% of its customers living within 30 miles of a Coldwater Creek location.

The company has said in the past that it sees the potential for 450 to 500 retail locations, and it took a step in the fourth quarter to prepare for expansion to that size, according to Pence. In the conference call, he noted that Coldwater Creek broke ground in the fourth quarter for a 350,000-sf expansion of its West Virginia distribution center that is scheduled to go into service in the fall. With the new distribution center, he said, "we believe we will have sufficient capacity to reach our retail build-out goal of 450 to 500 locations."