Sorry folks, but we have to keep this short because we have to be in the office at 6 a.m. this morning to do early cop checks.
On the bright side, Evine Live reported $167 million in revenue in the first quarter, a 5 percent increase year-over-year.
On the dark side, the No. 3 home shopping network also saw an increase in its losses, up 5 percent to $4.9 million, according to press release Wednesday.
Beauty was the fastest-growing category at 19 percent versus the prior year, followed closely by fashion at 18 percent, home and consumer electronics declined by 4 percent and jewelry and watches declined by 2 percent.
The return rate for the quarter was 19.2 percent, an improvement of 110 basis points year-over-year.
Gross-profit dollars increased 7.2 percent to $61.4 million. Gross profit as a percentage of sales increased 60 basis points to 36.8 percent.
Adjusted EBITDA increased to $3.4 million primarily due to improved merchandising margins and increased discipline in operating expenses and shipping and handling margin.
Operating expenses increased $3.8 million year-over-year to $65 million, a 6 percent increase, driven primarily by a $1.4 million increase in variable costs from an 8 percent increase in unit volume, and a $1 million increase in executive and management transition costs.
Earnings-per-share for the first quarter decreased to ($0.09), which includes $3.6 million in executive and management transition costs and $80,000 in distribution facility consolidation and technology upgrade costs. In comparison, EPS for the fiscal 2015 first quarter was ($0.08), which included $2.6 million in executive and management transition costs.
“The Evine team executed extremely well given both the recent changes at the company and the challenges we are seeing in the overall retail marketplace,” Bob Rosenblatt, chairman and interim CEO, said in a canned statement.
“By bringing added discipline and a greater commitment towards building a cohesive, more balanced business strategy, we’re proving that we can deliver both great exciting products to our customers, and improved profitability to our stakeholders.”
The network also announced an improved inventory position, which decreased 6 percent versus the same period last year, the largest decrease since the fourth quarter of 2012, and an improved gross margin, which increased 60 basis points versus the same period last year to 36.8 percent.
Evine Live also noted that it recently hired two new members of the senior leadership team: Nicole Ostoya as chief marketing officer and Michael Henry as chief merchandising officer.
“Both Nicole and Michael are exciting additions to the Evine family, each with great track records in their previous endeavors,” Rosenblatt said. “Together they will bring more energy and focus to attracting new customers while capturing an even greater share of wallet from our existing shoppers.”
Here is Seeking Alpha’s transcript of the Evine Live analyst call: