Archive for September, 2018

Evine Sales Flat In Second-Quarter

September 3, 2018

Catching up here, on the second-quarter results that Evine posted last week.

Everythng’s relative, we guess, and the No. 3 home shopping reported basically flat sales, up just over 1 percent to $150.8 million. Since HSN was down 11 percent and QVC saw a 4 percent gain.

Evine cut its net loss, bringing it down to $40,000, “improved by approximately $2.0 million year-over-year, representing the best second quarter performance since fiscal 2000,” according to the company. It also boasted that it had introduced 17 new brands during the second quarter.

And there were lengthy remarks Evine CEO Bob Rosenblatt.

We had a very productive quarter and I’m pleased with our results. We not only accelerated top line growth, but we improved bottom line profitability and grew Adjusted EBITDA by 12 percent year-over-year. We also strengthened our balance sheet and overall liquidity with an amendment of our credit facility that will provide interest expense savings and additional availability.

Our expertise is in building great brands. We do this by curating a portfolio of enticing products that have a unique story and then, with the right storyteller, we bring these products and brands to life across all of our platforms.

We strive to keep our content fresh and relevant with a combination of both core and new brands. To that end, we introduced 17 new brands during the quarter and celebrated a number of milestone anniversaries. Additionally, during the quarter, we continued to advance our digital and social initiatives, grow our subscription business and increase purchase frequency.

As previously announced, Evine noted that Anne Martin-Vachon had joined the network as president Aug. 1, and oversees merchandising, marketing, digital, broadcast and production. Previously, Martin-Vachon was president of the Canadian multiplatform digital commerce company TSC – Today’s Shopping Choice, a division of Rogers Media.

Evine also said that:

* The top performing category in the quarter was beauty and wellness, which grew 27 percent year-over-year, reflecting continued strength from our subscription business.

* Digital net sales as a percentage of total net sales increased 450 basis points to 52.6 percent, reflecting a continued focus on making the customer experience seamless across all platforms.

* The return rate for the quarter was 18.7 percent; an improvement of 40 basis points year-over-year and across multiple categories.

* Gross profit dollars increased to $56.9 million and gross profit margin was 37.7 percent.

* Operating expenses decreased 1.7 percent or about $1 million year-over-year to $56.0 million, reflecting reduced variable selling and distribution expenses.