It’s late and we’re tired, but we’re reading a transcript of Evine Live’s fourth-quarter earnings call with Wall Street analysts on Wednesday. See what we do for you guys! Anyway, we’ve already seen a bit of a bombshell.
In the transcript, provided by Seeking Alpha, CFO Tim Peterman said, “Last week, we enacted a reduction in workforce and other related costs that will result in approximately 5 million in annualized expense savings. We will continue to look for more ways to make our business more efficient.”
Interim CEO Bob Rosenblatt, who took over for ousted chief Mark Bozek, said that 45 full-time employees were laid off. We wonder if Connie Kunkle’s “early retirement” was related.
“It is mostly a matter of being able to be more efficient and more effective in terms of streamlining the organization and most of the positions were in corporate, that we took the positions out of,” Rosenblatt said according to Seeking Alpha’s transcript.
“And they ranged in high-level positions all the way down since it was 45 positions all the way down to staff positions but it was done in surgical manner and of course some other people that remain having the additional responsibilities.”
Rosenblatt also indicated that he had no plans of transforming Evine Live from a watch network, saying that the category distinguishes the channel.
He said that sales in beauty were especially strong, with brands such as Consult Beaute doing particularly well.
“On the jewelry side, we made a deliberate decision to reduce airtime which boosted productivity for the category,” Rosenblatt said. “Sales were down versus the fourth quarter of prior years, but I’m happy to report that the jewelry area continues to be one of our customers’ favorite categories.”
That’s right, Bob!
“Within the categories we experienced particularly strong sales in the following area,” he said. “Gems en Vogue, we had sales of over 11 percent; luxury diamond designer brands in general were over 104 percent. Our gemstone designer brands were up to 2 percent and our sterling silver sales were up 20 percent.”
Evine Live sold a lot of Hoverboards during the holidays, and then stories broke about the boards erupting in fire and users suffering a lot of injuries. Rosenblatt addressed that issue.
“We’re mindful of the continued situation regarding the Hoverboard products and we’ll continue to monitor the situation as our customer safety is always a prime concern of ours,” he said. “However, as you know Hoverboard’s only represent one of more than tens of thousands of products that we offer at Evine Live and as retailer these occasional issues are not unexpected.”