Archive for September, 2019

ShopHQ Posts 13% Drop in Sales in 2Q

September 10, 2019

Playing catch-up again. Late last month iMedia Brands Inc., the new name for newly renamed ShopHQ’s parent company, released its second-quarter results. The home shopping network tried to put a good spin on it, but figures don’t lie.

For the quarter ended Aug. 3, ShopHQ posted net sales of $131.5 million, a roughly 13% decrease year-over-year. But the network pointed out that this was “an improvement compared to the 16% year-over-year decline in the first quarter.”

In fact ShopHQ, once called Evine, also saw a reduction in its net losses, which were $10.2 million, an improvement compared to the $21 million net loss in the first quarter.

However, most earnings reports compare results to the same year-ago quarter, not the prior quarter. So there is that.

Year-to-date, sales are down just over 14%, to $263 million, versus the same year-ago period. And net losses year-to-date are $32.1 million versus just $3 million in losses in the year-ago period, a sizable 930% change. Wow.

“We began this turnaround journey in the first month of this quarter, and I’m proud to report we delivered as promised,” ShopHQ CEO Tim Peterman said in a canned statement.

“Specifically, we just arrested a nine-month, $33 million year-over-year decline in adjusted EBITDA,” he said. “It was a lot of smart, hard work performed by the team in a newly established entrepreneurial culture focused on execution. This is an exciting time for us – I am encouraged about our growth plan and proud of our employees and vendors.”

In its press release the company said, “We expect continued revenue declines in the third and fourth quarters, but at a decreasing year-over-year rate, as we demonstrated in the second quarter compared to the first quarter.”

Here are some other 2Q tidbits:

The top performing category in the quarter was watches, which increased 18.4% year-over-year.

Subscription sales increased 17%, reflecting strong loyalty within the beauty & wellness category.

The return rate for the quarter was 19.8%; an increase of 110 basis points year-over-year driven by return rate increases within the beauty & wellness and fashion & accessories categories.

Gross margin rate declined 140 basis points year-over-year to 36.3%, reflecting mix pressure from our fashion & accessories and beauty & wellness categories, as well as rate pressure in beauty & wellness.

Average selling price increased 24% to $68 driven by increases in the jewelry & watches and beauty categories combined with a mix shift into jewelry & watches.

Sending Healing to Celebrity Stylist Michael O’Connor

September 9, 2019

Prayers for celebrity stylist and veteran home shopping vendor Michael O’Connor, who recently disclosed he has been diagnosed with prostate cancer.

We loved Michael when he was the Affinity Diamond rep on QVC, and we’ve enjoyed his stints on other nets like Jewelry Television and as the rep for Passport to Gold on HSN. He is charming and informative.

Michael said he has known for a year now that he has cancer, and at this point he has decided to take a more aggressive approach to his treatment, with surgery.

Wishing him health and happiness.

Veteran Jewelry Vendor Joan Boyce To Exit HSN

September 9, 2019

We always enjoyed watching HSN jewelry host Joan Boyce, with her huge back square eyeglass frames, New York City manner and exuberant personality. She has been on the No. 2 home shopping network for 11 years, but last week announced on Facebook that her last show will be Oct. 29.

We guess this is part of QVC’s continuing purge of vendors since it merged-with/took-over HSN.

Sad to see yet another vendor who is unique disappear.

ShopHQ: New Name, New Hosts

September 9, 2019

We are way, way behind in our blogging folks. Duty at work called, and we are having technical issues in terms of posting our gems on Facebook. Here is an attempt at some catch-up.

Evine has been rechristened once again, this time back to an old moniker, ShopHQ.

The No. 3 home shopping channel put out a press release with this news last month, and in that missive also announced the hires/rehires of a batch of hosts, including Libby Floyd and Daniel Green.

Here is the press release from the horse’s mouth:

Evine Shopping Network Becomes ShopHQ

Celebrates with Three-Day On-Air Event & Launch of New Loyalty Program

MINNEAPOLIS, Aug. 21, 2019 (GLOBE NEWSWIRE) — iMedia Brands, Inc. (NASDAQ: IMBI), today completed the on-air rebranding of its flagship, nationally distributed shopping entertainment network to ShopHQ, capping a six-week awareness campaign with its customers across its television, online, mobile and social media platforms.

“Our customer stands at the forefront of our turnaround here,” said Tim Peterman, CEO of iMedia Brands, Inc., “and I am proud of how our management team utilized customer feedback to formulate this five-part rebranding effort designed to improve engagement with new and existing customers.” The changes include:

New name. We now better understand that the 2015 name change from ShopHQ to Evine was confusing and ineffective. We fixed that in a collaborative fashion over the last six weeks with our vendors and customers.

New sets. Live this Wednesday, our customers will see totally redesigned production sets that better reflect the emotive nature of our brands and vibrant network personality.

New hosts. Customers will begin to interact with six new or returning hosts we have recently hired to complement our existing talented team of hosts. We’re pleased to announce the following new additions to the team: Wendi Russo, Daniel Green, Libby Floyd, Amy Hirsh, Jen Vick and Brian Johnson.

New loyalty program. In November, we are planning to roll out an exclusive, new loyalty program called ShopHQ VIP. This innovative new program will enable our customers to earn cash back, enjoy free shipping and participate in discounts at other retailers in our loyalty network.

New website. Over the next three months, our customers will begin to enjoy improvements to the interactive experiences on all our platforms, from desktop to mobile and from home page to emails.