After seeing its sales slide downward, Coldwater Creek (CWTR) said it will explore a possible sale and other strategic alternatives.
Shares tumbled 29% to 89 cents following the news, adding to a year-to-date slide of 73.8% as of Monday’s close.
The strategic review, which will be led by Coldwater Creek’s board and Perella Weinberg Partners, doesn’t mean a transaction will actually transpire, the company said. No timetable for the review has been set.
“As a result of an increasingly challenging retail environment, we are continuing to take the necessary steps towards improving our financial position as well as our long-term prospects as a more competitive and successful company,” CEO Jill Dean said in a statement, adding the retailer will focus on driving sales and customer loyalty.
The decision to consider alternatives came as the women’s apparel retailer warned its sales have continued to weaken in the current quarter. Sales dropped 7.3% in the second quarter.
Coldwater Creek’s continued struggles will likely push third-quarter results lower than expected, despite efforts to scale back costs.
The Sandpoint, Idaho, company had forecasted an adjusted loss of 55 cents to 75 cents, a wider loss than analysts were anticipating at the time.
Coldwater Creek has logged quarterly losses for the last three years.