Coldwater Creek, the women's clothing chain has shown a profit for the second quarter of current year. This is against the expectations of the markets which had expected the company to go into losses.

The profits are the result of increase in revenue and obviously after the announcement the shares of the firm went up by 20 per cent during Wednesday.

Besides this, Coldwater has also said that the margins are going to improve in the coming year will benefit because of the inventory control measures that it has followed.

President and CEO Dennis Pence said that it has been making progress in its inventory and this is the result of the rising demand. The margins, he added, are going to rise.

For the quarter ending July, Coldwater saw its net income go up to $1.5 million or 2 cents per share as compared to a loss of $4.9 million or 4 cents per share.

Revenue was up 12.6 per cent or $253.5 million.