Evine 2Q Sales Down 5 Percent, To $149 Million

Evine became the third home shopping network to see its sales drop in the second quarter, with them dipping roughly 5 percent to $149 million, the company said Wednesday.

Evine also has a net loss of $2 million, flat year-over-year, and with adjusted EBITDA of $3.5 million.

http://s21.q4cdn.com/129019908/files/doc_presentations/2017/q2/Evine-Earnings-Presentation-F17-Q2.pdf

QVC’s parent, Liberty Interactive Corp., already reported reported that the No. 1 home shopping network saw its second-quarter revenue drop 4 percent, to $1.37 billion. And HSN suffered a 4 percent drop in its second-quarter sales, to $532.2 million.

“This second quarter is the final quarter of expected revenue decline, which was related to the year-long re-balancing of our consumer-electronics mix of business that began in April of last year,” Evine CEO Bob Rosenblatt said in a canned statement.

“This re-balancing was an important step to position our merchandising offering for long-term profitable growth and we accomplished it while again delivering on our quarterly EPS [earnings per share] guidance.”

Rosenblatt then crowed about some launches that the network has coming up.

“When we combine this progress with the launch of more than 10 million high-definition homes and the launch of our high-definition signal in September, we believe the second half of fiscal 2017 is positioned well to deliver solid, profitable growth,” he said.

Evine’s top-performing category in the quarter was home, which increased 9 percent year-over-year.

Consumer electronics, which declined again as a result of management’s reduction of lower-margin merchandise, declined 8 percent. The so-called “wearables” group decreased collectively by 8 percent, driven by continued pressure in watches.

The return rate for the quarter was 19 percent, an improvement of 70 basis points year-over-year.

Gross profit as a percentage of sales decreased 20 basis points to 38 percent year-over-year, driven primarily by mix pressure from the home category. Gross profit dollars decreased 6 percent to $56.5 million year-over-year.

Operating expense decreased $3.1 million to $57 million, a 5 percent decrease, driven by reduced distribution and selling expenses.

“It is clear that there is a sea change occurring throughout the retail landscape,” Rosenblatt said.

“All retailers, be it online or those with a significant bricks-and-mortar presence, continue to try to find better and differentiated ways to connect with the consumer. We believe interactive video commerce messaged to the consumer, based on the delivery platform used, whether that be through social, or traditional eCommerce, in concert with the data and predictive analytics available, marks the next significant growth curve,” he said.

“When I look out two to three years from now,there will be two types of retailers: Those whose models are based on price, selling commoditized products available on multiple platforms, and those whose models are based on product exclusivity and the customer experience. Our goal is to be a leader in the latter category.”

“Interactive video is the cornerstone of our digital commerce company that is driving business opportunities in all digital platforms and business models, from mobile to social, from laptop to television, and from merchandising business models to web service business models. We plan to do this while engaging with all types of customers, from millennials to baby boomers and to both women and men. A significant portion of the population will continue to purchase product from a curated assortment that facilitates the opportunity of discovery. We believe interactive video commerce at scale, an expertise we have continued to refine over many years, gives us an unfair advantage in delivering that experience.”

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