Coldwater Creek’s profits rise 60%

Coldwater Creek Inc.’s net income rose sharply last year to $46.8 million, or 50 cents per share, a 60 percent gain over 2004 earnings.

The results, released Wednesday, compared to net income of $29.1 million, or 32 cents per share, in fiscal year 2004. The fiscal year for the Sandpoint-based retailer of women’s apparel and gifts ended Jan. 28.

Coldwater Creek Chairman Dennis Pence attributed the company’s increased profitability to clothing styles that sold well, increasing the volume of full-priced sales and reducing clearance items. A national magazine advertising campaign during the fourth quarter also helped drive sales growth, he said.

Coldwater Creek reported fourth-quarter income of $18.9 million, compared to $11.4 million during the fourth quarter of 2004.

Suit alleges radio station payola

Gifts, trips and cash were used to pave the way for air time for certain songs at radio stations owned by one of the nation’s largest chains, according to a lawsuit filed by state Attorney General Eliot Spitzer.

The accusation was denied by the company, Entercom Communications Corp. of Bala Cynwyd, Pa., which owns and operates more than 105 radio stations.

Spitzer said payola violates radio stations’ federal licenses and New York state civil law. He said the Federal Communications Commission, which he said has been “asleep at the switch” on payola, should consider revoking the licenses.

San Francisco

Google settles ‘click fraud’ suit

Google Inc. has agreed to pay $90 million to settle a lawsuit alleging the online search engine leader overcharged thousands of advertisers who paid for bogus sales referrals generated through a ruse known as “click fraud.”

The proposed settlement, announced by the company Wednesday, would apply to all advertisers in Google’s network during the past four years. Any Web site showing improper charges dating back to 2002 will be eligible for an account credit that could be used toward future ads distributed by Google.

The total value of the credits available to advertisers will be lower than $90 million because Google has earmarked part of that amount to cover fees of lawyers who filed the case last year in Arkansas state court. The proposed settlement still requires final court approval.

Washington

Commercial land loans worry Fed

The rapid growth in commercial real-estate loans made by community banks bears watching, even as these mostly smaller, local banks remain in good overall financial health, Federal Reserve Chairman Ben Bernanke warned Wednesday.

“In most local markets, commercial real-estate loans have performed well,” Bernanke said.

The growth of commercial real-estate loans “raises the possibility that risk-management practices in community banks may not have kept pace with growing concentrations and may be due for upgrades in oversight,” he said.