Nov 24 (Reuters) - Women's apparel retailer Coldwater Creek Inc (CWTR.O) posted a quarterly loss that narrowly missed Wall Street estimates as increased promotional activity ate into margins, sending its shares down 6 percent.

Photo: www.coldwatercreek.com

The company, which also sells gifts, jewelry and accessories, posted a third-quarter net loss of $34 million, or 37 cents a share, compared with a loss of $1.3 million, or 1 cent a share, a year ago.

Excluding a charge associated with former Chief Executive Daniel Griesemer's departure and other charges, the company posted a loss of 4 cents a share.

Net sales rose 17 percent to $266.7 million.

Analysts on average had expected the company to lose 3 cents a share, before special items, on revenue of $232.2 million, according to Thomson Reuters I/B/E/S.

Coldwater Creek, which has been trying to turn around its business hurt by lacklustre fashions and lower consumer spending, earlier this month said its CFO would resign effective Nov. 25, just over two months after it brought back co-founder and Chairman Dennis Pence as CEO.

Gross margins fell to 36.4 percent, primarily due to lower merchandise margins resulting from increased promotional activity and lower initial markups.

Operating expenses rose to 40.6 percent of net sales from 38.9 percent last year, including a pretax charge associated with the departure of former CEO Griesemer in September.

Shares of the Sandpoint, Idaho-based company were down 8 percent at $4.90 in trading after the bell. They closed at $5.35 Tuesday 24 November on Nasdaq. (Reporting by Abhishek Takle in Bangalore; Editing by Gopakumar Warrier) (([email protected]; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters messaging: [email protected]))