Evine Sales Dive 16% in 1Q, Cans 11 Top Execs As Part of Blood Bath, Back To ShopHQ

We bet Evine is glad its first quarter is over. But the execs who got pink slips we’re sure are not happy. Oh, and the name is also going back to ShopHQ. And there’s going to be Shop Bulldog channel for men, and a new Spanish-language one, too.

It’s a lot to digest.

First of all, the No. 3 home shopping network saw its sales nosedive 16% in the first quarter, to $131.5 million versus the prior year. It also suffered a net loss of $21 million, compared to net loss of $3 million in the prior year.

New CEO Tim Peterman, who rejoined the company earlier this month, wasted no time wielding the ax. In one of the worst corporate-speak euphemisms we’ve ever heard, he called the network’s mass layoffs “a cost optimization event” that will eliminate $15 million in annual overhead costs.

“This event included a 20% reduction in non-variable workforce and the permanent elimination of the following 11 senior executive roles: EVP, Product Sourcing & Business Development; EVP, Managing Director of Brand Development; EVP, Chief Human Resources Officer; SVP, Chief Merchandising Officer; SVP, Chief Accounting Officer; VP, Site Merchandising & Customer Analytics; VP, Customer Operations; VP, GMM Home; VP, Planning; VP, Marketing; and VP, GMM Beauty,” Peterman said in a statement.

As for the name change, here we go again.

“In the second quarter, we are planning to change the name of the Evine network back to ShopHQ, which was the name of the network in 2014,” Peterman said. “ShopHQ is easier to recognize for existing television retailing customers, who spend over $9 billion annually with television retailers in U.S. We believe this more intuitive and recognizable name will allow us to better promote to our network and build our customer file again. Our conclusion from the review of the customer impact data related to the change to Evine in 2015, was that it was not positive.”

Peterman made no excuses for the network’s performance, since he wasn’t responsible for it.

“I am excited to rejoin Evine as its new CEO,” Peteman said. “Although we have only been working as a team again for less than a month, we have already identified the primary causes for Evine’s dramatic financial declines these last few quarters and begun to implement focused remediation actions.”

“In terms of our first quarter, 2019 performance, there is no other way to say it – our performance was poor.”

No sh-t.

“In fact, our performance over the past three quarters has significantly missed expectations, and we must perform better for our shareholders and employees,” Peterman said. “Our plan to reverse our recent negative financial trend is clear, exciting and already in motion.”

This has included hiring Jean Sabatier for the new post of executive vice president, chief commerce officer.

“This is an important change expected to re-establish operating fundamentals in pricing, merchandising, programming and planning,” Peterman said. “Jean rejoins the company after having served as SVP, Sales & Product Planning and Programming from 2008 to March 2017. Most recently, Jean has served as a planning and programming consultant in both Germany and Italy to HSE24, an omnichannel retailer.Prior to joining Evine in 2008, Jean spent 11 years at QVC.”

Peterman added, “We are optimizing the current merchandising mix to drive better customer engagement and immediately improve our merchandising margin and shipping margin. We expect this changed mix will lower our variable costs as a percentage of revenue. This is a cornerstone remediation effort that we anticipate will create an increase of 5% to 7% in the airtime mix of our strongest categories of jewelry, beauty, wellness and watches, and a corresponding decrease of 5% to 7% in the airtime mix of our lowest performing categories of home and fashion.”

Peterman also cited the $11 million in additional working capital it’s freceived via Invicta Watch Group investment transaction.

“We secured the services of Eyal Lalo, as our new vice chairman, and we expect he will help us reignite our vendor community with passion while also helping us find and launch new vendors to strengthen our product assortment in all of our merchandising categories,” Peterman said. “This is also a cornerstone of our remediation effort. In the last three years, Evine has not launched a single brand that has exceeded $10 million in annual revenues. Eyal is already making a difference for us in this area.”

Here’s the new interactive media game plan:

Using our “service fee” business model:

Expanding Evine’s existing 3PL service offering. In 2017, Evine launched its 3PL services business unit and signed its first customer, G-III Apparel Group, in 2018 with brands such as Karl Lagerfeld Paris, DKNY and G.H. Bass.

This year we expect to add customers and expand our service offering to provide a “one-stop commerce services offering” targeting brands interested in propelling their growth using our unique combination of assets in television, web and 3PL services. We will also seek to add services in the AdTech space monetized with advertising and fees.

Using our “advertising & eCommerce” business model:

Shop Bulldog: In Q4 of 2019, we expect to rebrand our existing Evine Too channel into a new omnichannel, television shopping brand called Shop Bulldog (“SB”) that will sell and advertise men’s merchandise and services, and the aspirational lifestyles associated with its brands and personalities.

Although SB will be produced in Minnesota at the corporate headquarters like our ShopHQ channel, SB will not be associated with ShopHQ from a branding and creative perspective. Our unfair advantage in executing this strategy is our existing strength in watches and male customers in television retailing.

LaVenta: In Q1 of 2020, we expect to launch a new omnichannel, Spanish language, television shopping brand centered on the Latin culture to sell and advertise merchandise, services and personalities, celebrating aspirational lifestyles.
LaVenta will be produced in Miami by a standalone Latin management team. We also have a compelling unfair advantage to build this new offering – the top three shopping categories in the Latin culture are beauty, watches and jewelry – our core strengths.

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16 Responses to “Evine Sales Dive 16% in 1Q, Cans 11 Top Execs As Part of Blood Bath, Back To ShopHQ”

  1. Carolyn Simpson Says:

    why didn’t they just call it the invicta network. all I see are watches watches watches.

  2. Queen Celeste Says:

    Agree, Carolyn, way too many enormous watches. And now those pillows. Boring!

    I’m not surprised the name “Evine” did not resonate with viewers.
    Any of us here could have told them that. Interesting tidbit in there about fashion sales down. I’m not surprised, with all those hippie dippy Coachella outfits. They need a good, elegant, simple line for women of a certain age. We’re the ones watching! Well, will always root for ValueVision/ShopNBC/ShopHQ/Evine/ShopHQ and will hope for the best for their survival.

  3. Queen Celeste Says:

    Sorry, don’t know what happened to spacing there!

  4. Abigail Says:

    I don’t see this company surviving, they have awful products, even worse show hosts and I took a peek last night with the annoying pillow guy, sold 1000 of those awful pillows all day as the special value, why would any vendor go there? Although he’s still peddling those awful pillows on the Q this afternoon.

    As far as the nane change, the finally woke up, Evine sounded like Irvine.

  5. carolyn simpson Says:

    omg I didn’t know the pillow guy had invaded evine. I bought four from the q . what a waste of money. they are lumpy and impossible to sleep on.i even tried giving them to my single sons who usually take any handout from mom. they gave them back

  6. Lori Says:

    Toast as is QVC and HSN, horrible leadership, blaming others it’s a playbook that just leads to the end. Bye Bye all.. can’t say that I will miss you.

    • Jerri Says:

      Lori,
      So true. They have all put themselves in their respective precarious positions. Sad to see the “old days” of home shopping go, but do not like what we are left with.

  7. CL Says:

    The first My Pillow live airings last weekend sold a bit over 3500 sets, or over 7000 in total. I’m sure that number increased somewhat as the evening went on and people looked online, but it is a big difference from being on QVC (which apparently has a My Pillow TSV on June 6).

    I find the phrase of a new head honcho working to “reignite our vendor community with passion” while finding new vendors to be a bit interesting. Morale must be below the toilet level there.

    I think everyone knows Evine doesn’t do the volume of Q or HSN, but it’s obvious they are really struggling. Besides the poor sales, they could get delisted from NASDAQ in July.

  8. Betty Says:

    Now Evine has stopped its TTV and replace it with “Once Only.” It started today and it looks like it’s a way to clear out inventory of medium to smaller numbered products they are storing in their warehouses. They have fashion, watches, jewelry and home on “sale.” Looks like shipping prices are still high. Evine NEVER LEARNS. THEY JUST REFUSE! It’s mind boggling! They will sadly go out of business, IMO.

    • Alissa Says:

      Agreed. Same with HSN and QVC. HSN has rare “special”shipping prices, but generally they’re expensive. Same old, same old vendors. Same with QVC. HSN, now under QVC ownership and management, has adopted their boring vendors and ways. Most of the good vendors headed over to Evine.
      It’s all going to crumble, and home shopping will be a memory. Indeed, the times, they are a’ changing.

  9. Betty Says:

    OMG!!! Deb Murrury posted the following on the Evine FB page under the “community” tab. ” For the past six years I have been blessed to do what I adore, demonstrate cooking products. My hair color, aprons and waste line have changed over the years but my joy of cooking has not dimished. I am so happy I get to do live cooking shows through June on Evine. My first shows start June 7th at 9 and 10 am Eastern . Please post a picture here of a product you have bought from me over the years to win a chance to cook with me in person.”

    Then a Deb fan asked a question, ” Does this mean you won’t be on Evine after June?” Deb answered, ” I am not sure, I just know we have June! ”

    WE ALL KNOW WHERE THIS IS GOING. SAD.

    • Megan Says:

      I remember when Deb was on HSN. She was Wolfgang’s assistant, and also made “Somersize” snacks for Suzanne and Colleen. She has a wonderful personality, and you can tell she loves to cook. I hope she is there beyond June!
      Evine changing its name back to Shop HQ is definitely an improvement, but it may be too late. I can’t stand QVC, and HSN, same. Evine is all we have left.

      • Missy Says:

        I agree. There’s a lot I don’t care for at Evine, but they have (generally) better products, and better prices. Especially the sales and clearances.
        As for Deb Murray, I’ve always liked her, too. I remember her taking goodies on stage to Suzanne and Colleen. And her personality was the perfect contrast to Wolf’s. And, they got along well and interacted beautifully.
        I remember on HSN that she bought a ring from one of the jewelry shows I, too, had bought the same ring. I remember her wearing it for quite some time afterward.
        I hope they keep her; she is a great personality and does NOT sell watches, lol! I hope Evine pulls itself up out of this somehow. And, I like ShopHQ much better for the name.

      • Dina Says:

        @ Missy

        I had that ring, too! It was technibond with a nice sized pear cut lavender stone. I had a suit that color matched exactly. I wore it for years. I made a big move about 7 years ago and it got lost. It was still pretty.
        Deb has been a great addition to any channel she has been on. And I loved her on HSN. She’s a keeper, Evine. Wake up, and do the right thing.

  10. Queen Celeste Says:

    Also like Deb Murray and remember her with Suzanne and Colleen. I’m not a big cooking show person, but often will watch just for her. I hope she’s able to stay at Evine.

    • Renee Says:

      I just ran across this now. I hope they keep Deb.
      I enjoyed her on HSN, too. And she made all cooking shows interesting. Like you, Celeste, I’m not much for kitchen shows. But I enjoy her. Suzanne always praised the treats Deb brought out; pretty good, since Suzanne is a good cook herself. Those were the fun to watch, fun to shop days. Now it’s no fun at all.

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