Evine’s Sales Drop 6% in 1Q, To $156 Million

Evine saw its first-quarter net sales drop like a stone, down 6.3 percent, to $156 million versus the year-ago building, the network said Tuesday.

The company also posted a net loss of $3.2 million, and adjusted EBITDA of $3.1 million.

“As expected, it was a tough retail environment so I’m pleased that our teams were able to deliver on our revenue and EPS (earnings per share) guidance to our stakeholders,” Evine CEO Bob Rosenblatt said in a canned statement.

“This is the fourth quarter in a row we have improved our bottom line profitability. We are more passionate than ever that our discipline around the interactive video commerce fundamentals is positioning our company well for continued improvement in profitability throughout the year.”

And that’s not all:

Rosenblatt continued, “Our 2017 growth strategy remains focused on building proprietary and exclusive brands as well as using our national multi-platform distribution to showcase lesser known compelling brands that cannot replicate our kind of reach in today’s retail landscape. Our team finds the brands and helps tell their stories in a way only interactive video commerce can do.”

This is it:

“It is clear the traditional department-store retail strategy of offering everything to everyone has been disrupted by technology, which allows for narrow-casting of personal shopping capabilities to consumers,” Rosenblatt said. “We believe our growth strategy positions us to become the platform for the next generation of personalized e-commerce.”

Wearable categories, which include jewelry and watches; fashion and accessories; and beauty, decreased in sales by 5 percent year-over-year, which was primarily driven by the watches category.

The top-performing category in the quarter was fashion, which increased 8 percent year-over-year.

Consumer electronics, which continues to decline “as a result of management’s proactive reduction of lower margin merchandise in this category,” decreased by 45 percent year-over-year.

The return rate for the quarter was 18.8 percent, an improvement of 40 basis points year-over-year.

Gross profit as a percentage of sales decreased 80 basis points to 36 percent year-over-year, driven primarily by rate and mix pressures from the watches category.

Operating expense decreased $8.1 million year-over-year to $56.9 million, a 12 percent decrease, driven by reduced selling and distribution expenses, reduced management transition costs and other reductions from profit-improvement initiatives.

Things aren’t looking too much better for the second quarter.

“We expect revenues to decline 3 percent to 5 percent, which reflects management’s continued rebalancing of the Company’s merchandising mix to reduce low-margin consumer electronics that began back in Q2 of 2016,” Evine said.

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4 Responses to “Evine’s Sales Drop 6% in 1Q, To $156 Million”

  1. Kim Says:

    “It is clear the traditional department-store retail strategy of offering everything to everyone has been disrupted by technology, which allows for narrow-casting of personal shopping capabilities to consumers,” Rosenblatt said. “We believe our growth strategy positions us to become the platform for the next generation of personalized e-commerce.”

    I have read this five times — It makes no sense particularly since Evine has no choice but to be a traditional dept store albeit on TV. Someone told him “disrupt” would be a catchy word. He totally contradicts himself. The last sentence is void of anything substantive. If I can make anything at all out of this quote I want to say DUH. Evine is about 10 years behind the times!

  2. SUSAN Says:

    When will these TV Channels learn…Electronics do not sell well on these shopping channels….they have been in decline in sales for several years now at QVC yet they continue to monopolize their weekend programming! And Evine needs to DITCH the watches—my friends and I laugh and call it THE WATCH TV CHANNEL!!! And jewelry has not been doing well on QVC, HSN, and now Evine!!! It seems these Shopping TV Channel Execs havent a clue what their customers want to see and buy—Here’s a novel idea, why dont you ask and listen to your long time customers!!! And uncompetitive prices and limited products and boring programming drive customers away!!! I can walk into a TJMaxx, Home Goods, or Marshalls and find something new and different every time I shop……variety and uniqueness is a key—not the same ole stuff we see on infommercials!

  3. Abigail Says:

    Not shocked, they have 10 vendors with junk, the hosts are awful, i tried to watch a show with that elderly blond woman,not Kendy the other one, she was prancing around like a teenager, nope, the clothes are just cheap quality to be nice, I don’t see them ever making big money.

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