Evine’s Sales Flat In First Quarter, At $156.5 Million

Evine’s net sales were essentially flat in the first quarter, $156.5 million compared to $156.3 million a year ago, but it did cut its losses, the company reported last week.

The Minnesota-based home shopping network saw a loss of $3 million, a 7 percent improvement over last year’s $3.2 million.

“I am very encouraged by our first quarter operating results,” Evine CEO Bob Rosenblatt said in a canned statement. “It was a very productive quarter for us and the results reflect the hard work and focus of many over the past two years towards our turnaround efforts.”

“Strategically, 2018 is about profitable revenue growth, product development and increasing our customer base,” he said. “We can achieve our goals if we maintain our focus and deliver on our stated strategy to position Evine as a leading omni-channel purveyor of proprietary, exclusive, and under-discovered goods. This, when combined with our fully built out direct-to-consumer and increasingly valuable video commerce platform, will deliver increased value for our shareholders, customers and vendors.”

The first-quarter highlights were:

• The top performing category in the quarter was beauty and wellness, which increased 17.3 percent year-over-year, reflecting strong results from our subscription business. Home and consumer electronics also had strong year-over-year growth of 5.5 percent with strength in our tabletop category.

• Digital net sales as a percentage of total net sales increased 240 basis points to 53 percent, reflecting our continued focus on making the customer experience as frictionless as possible across all devices.

• The return rate for the quarter was 18.9 percent; relatively flat year-over-year and within our expectations based on our merchandise mix.

• Gross profit dollars were flat year-over-year at about $56.3 million. Excluding contract termination costs of $753,000, gross profit dollars would have been approximately $57 million, or 1.3 percent better than last year.

• Operating expenses increased 2.3 percent or $1.3 million year-over-year to $58.2 million, including a $518,000 increase for executive transition expenses. The remaining increase was due to investments in our organization to support growth. Additionally, year-over-year increases in program distribution costs associated with high definition carriage were mostly offset by savings related to favorable negotiations for other carriage.

The network did some executive housecleaning, as well. Diana Purcel was appointed executive vice president and CFO, replacing Tim Peterman, formally chief operating officer/CFO. Peterman’s COO duties have been absorbed by the executive team.

And Mark Locks was appointed executive vice president of product sourcing and business development.

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2 Responses to “Evine’s Sales Flat In First Quarter, At $156.5 Million”

  1. Diana Says:

    The majority of Evine’s clothing line has become cheap and the same old same old in style. One World needs to cut back on some of that tie dye look, been there done that, decades ago. It wasn’t all that pretty then and it still isn’t today. And PLEASE, stop with the high-low hem lines! They look ridiculous, especially the tops with the really long back hems. They look like someone needs to come by with scissors and cut them off. People only wear one watch at a time. As soon as I see them selling watches I turn the channel. Again, they really need to up their game on their clothing line. That might help their bottom line.

  2. Queen Celeste Says:

    Agree about One World, Diana. I’d like to see more from WDNY (is Warren Donner gone, I wonder? He had some really nice pieces. Not to mention he’s such a cool cat.) I also like Mark Bouwer, especially his dresses. But I’m happy to see the shark bite/high-low/cold shoulder get the cold shoulder. Also would like to see more fashions in green, purple, and rust, even mustard and chartreuse. And more velvet, or stretch velvet. Simple styles in lovely colors and fabrics are always welcome.

    Also totally agree about the watches. Yawn! And please bring back Shelley Cooper’s Sweet Romance. She was the best jewelry guest ever, with a depth of knowledge about jewelry from all eras. Evine used to have such a wonderful variety of fashion jewelry–would love to see that come back. Not that I need more after 28 years of shopping!

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