Coldwater Creek shares rise on higher outlook

Late Monday, the company said it expects fiscal second-quarter per-share results to range from break-even to a profit of 2 cents, compared with earlier guidance for a loss between 3 cents and 9 cents per share.

The company--which has reported a loss for the last three quarters--also increased its quarterly revenue guidance and its full-year outlook.

The news sent shares of the company up 90 cents, or 18.2 percent, to $5.84 Tuesday. The stock has traded between $3.40 and $22.21 during the past 52 weeks.

Roth Capital Partners analyst Elizabeth Pierce said she was "impressed" by the higher guidance amid a difficult retail environment.

"In our opinion, the increase in guidance reflects the company's success in implementing several strategic initiatives, including more newness in the merchandise assortment to drive sales, tight inventory management and impressive expense control," she wrote in a note to investors on Tuesday.

She raised her second-quarter estimates, but reiterated her "Hold" rating due to the weak retail environment.

C.L. King analyst Mark Montagna said the higher guidance is evidence of the progress he expected when he upgraded the company to "Strong Buy" on June 26.

"Our upgrade was based on our increased conviction that management will execute on the different elements of its strategic plan, most importantly improved merchandise," he wrote in a client note on Tuesday. "We are also further convinced based on the likelihood of improved merchandise margins driven by reduced inventory levels."