Coldwater Creek Inc. CEO Dennis Pence told securities analysts Oct. 18 that five factors were behind disappointing results in the company's third quarter ended Oct. 30.

The shares of the Sandpoint-based women's fashion retailer fell almost 35 percent on Oct. 19, the day after the company said it would miss its earnings projections by a substantial margin and expected to lose 14 cents to 19 cents a share in the quarter.

That announcement conflicted sharply with previous guidance Coldwater Creek had given to securities analysts, that it expected to earn profits in the range of 1 cent to 4 cents a share in the quarter.

Pence told securities analysts in an Oct. 18 conference call that the company had experienced weakness in several key categories in its women's fashion lineup, including jackets, no-iron woven shirts, and corduroy pants, as it continued to rely on bestsellers from previous seasons rather than offering customers something new. He also said the company saw a lackluster performance because it hadn't invested heavily enough in products that represented a move "to a more updated fashion sensibility."

The company also didn't highlight key items and categories prominently in its marketing or in-store presentations, its fashion messages for fall weren't well-received by the customer, and it should have had a better balance of pricing points, Pence said.

"We're making a lot of changes, and we will fix it, but I apologize for the mess," Pence said in the conference call.

Coldwater Creek's common shares closed at $3.47 on Oct. 19, down from $5.36 the day before. Since then, the company's share price has stayed down, closing at $3.34 on Monday.

Pence told the analysts that the company had made several changes in key positions in its merchandising and design operations. A senior person who served under President and Chief Merchandising Officer Georgia Shonk-Simmons had resigned, and a number of changes had been made in the scope of the responsibilities of company personnel, which Coldwater Creek believed would support its future strategic direction. In addition, it recently replaced the head of product design and development in its New York office who worked for Executive Vice President and Creative Director Jerome Jessup, Pence said.

"Under Jerome's leadership over product design and development, we are working to assemble a strong team that will enable us to deliver consistent fashion assortments that resonate with our customer base," Pence said.

He added that the company had increased its promotions "to enable us to end the quarter with inventory that is well-positioned for the holiday season. As we look ahead, we will continue to evaluate the factors that contributed to our shortfall this quarter to determine if additional adjustments need to be made."

After the company's announcement, it took a beating in the online investing press. Fool.com said Coldwater Creek's share price "plunged into the icy depths," and added that the baby boomer demographic it serves "now faces serious financial challenges," which means fashion retailers that cater to boomer women will face an uphill battle.

The company said it expects third-quarter net sales of $225 million to $230 million, reflecting a decline in comparable premium retail store sales of 18 percent to 21 percent compared with its year-earlier quarter. It said it previously had given analysts guidance that its third-quarter net sales would increase.