Posts Tagged ‘Evine’

Evine’s Sales Slip 1% In Third Quarter

November 22, 2017

Not a great third quarter for Evine this year, especially when someone is stalking the company.

The home shopping network posted net sales of $150 million, a roughly 1 percent decrease year-over-year. Management estimates net sales would have increased 1 percent when excluding the estimated $3 million negative sales impact from Hurricanes Harvey and Irma during the quarter.

Evine suffered a net loss of $1.1 million, and an adjusted EBITDA of $3.8 million, a 49 percent improvement year-over-year.

“I am very proud of our Q3 operating results,” CEO Bob Rosenblatt said in a canned statement.

“As our stakeholders know, this is the very beginning of what we call Year Two, the phase in our strategic plan that is focused on delivering revenue and free cash-flow growth. In Year One, we fixed our merchandising mix and significantly improved our balance sheet and profitability. This coming year our plan is to begin scaling our enterprise. In addition, boosted by our recent sale of our Boston television station, we are positioned to deliver positive EPS [earnings per share] for the fiscal year, which would be the first time we have accomplished this since fiscal 2007.”

He added, “We believe our strategy of a thoughtful transition over time into an interactive digital commerce company will drive sustainable revenue growth, EPS growth and multiple expansion growth that will combine to drive significant shareholder value. Specifically, longer term we seek to build and operate multiplatform digital commerce experiences using proprietary technologies that monetize multiple business models.”

The top-performing category in the third quarter was beauty, which rose 10 percent year-over-year. Fashion, home and consumer electronics also increased.

The return rate for the quarter was 19.1 percent, an improvement of 140 basis points year-over-year.

Gross profit as a percentage of sales increased 150 basis points to 38.1 percent year-over-year, driven primarily by improved rates. Gross profit dollars increased 3 percent to $57.3 million. Operating expense remained flat at $58 million.

As of the end of October total cash was $23 million, compared to $22 million at the end of the second quarter. Evine also had an additional $13 million of unused availability on its revolving credit facility with PNC Bank, which gave it total liquidity of about $36 million as of the end of the third quarter.

As previously announced Evine agreed to sell its television station, WWDP, serving the Boston market, for an aggregate of $13.5 million. The transaction includes two agreements with unrelated parties.

The first agreement closed in the third quarter and resulted in the initial receipt of a $2.5 million cash payment. That cash was used to pay down an equal amount of our loan with GACP.

The transaction resulted in an $833,000 net tax benefit related to the reversal of a deferred tax liability that was partially offset by a $221,000 loss related to the early debt extinguishment.

Got that?

The second agreement is expected to close in the fourth quarter following satisfaction of customary closing conditions, including Federal Communications Commission approval.

The financial impact of this transaction, including the complete pay-down of the remaining $3.6 million loan with GACP, is expected to include a $3 million positive impact to net income in the fourth quarter.

“We continue to expect fourth-quarter revenue growth in the mid- to high-single digits,” the network said in a press release Tuesday.

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Segel Makes Offer For Evine

November 20, 2017

The folks who are jockeying to acquire Evine put out a press release last week press saying that they will pay a 105 percent premium to buy the home shopping network.

The announcement was released by Marvin Segel, founder of Segel Vision LLC, who claims that the Minnesota-based Evine’s board has rebuffed his two attempts to contact it.

“The board refuses to hear the details of the offer,” he said in a statement,

According to Segel, under the proposed offer Segel Vision would make “an equity purchase of the operating subsidiary at a premium of 105 percent.”

The press release says, “By establishing a total equity value of $175 million for Evine, Segel Vision would, in effect, be paying $2.66 per share” for the company.

“Segel Vision’s financing is bona fide, and in place,” Segel said.

With the acquisition, Segel Vision’s team will merge Evine into Segel’s company Starshop, “an extraordinary millennial-friendly, influencer and celebrity-driven multi-experience shopping App, launched in partnership with SPRINT Mobile Network.”

Say what? What the heck does that mean?

“Acquiring Evine Live will revolutionize the retail industry through a proprietary mix of mobile technology and television broadcast, focusing on a side of the TV shopping business that has been underused by all shopping channels to date,” Starship CEO Jim Morrison — the former president of L’Oréal USA, not the decease singer – said in his statement.

And again we ask, what the hell is he talking about?

“We believe our team has the experience and contacts to focus more productively on nurturing the internet’s most popular influencers to endorse and adopt the products, together with the world’s most recognized celebrities — thus improving top-line growth and net profits,” Morrison said.

“Imagine yesterday’s on-air guests and inventors being enhanced by today’s vloggers and bloggers with millions of followers who trust them. It truly is the perfect storm of retail,” he said. “The 25-year-old TV shopping sales model has got to morph; and with Starshop’s mission to add over-the-top content created by social media influencers, we will literally add 15 million more subscribers to Evine Live’s current viewership on Day One.”

With a fercockt pitch like this, no wonder Evine’s board hasn’t responded.

Segel Vision has retained The Lucas Group, a strategy consulting and private equity investment firm.

In a statement, founder and Chairman Jay Lucas promises “to work with Evine’s board to optimize a transaction price and structure for all parties.”

Lucas added, “We ask that shareholders encourage their board to engage with us and evaluate our proposals in fulfillment of their fiduciary duties to maximize shareholder value. Our group is prepared to negotiate a transaction to purchase Evine Live based on total enterprise value. The premium which we are offering is three times greater than the premium that QVC just paid for HSN; and this, for a company that has had only three profitable quarters in 20-plus years.”

Segel Vision apparently has big plans. In tandem with its proposed merger and acquisition with Evine, Segel Vision claims that Starshop will roll out America’s first and only shopping channel in Spanish, called tuStarshop, which has already launched on mobile and e-commerce in affiliation with tuvisióncanal.com, an Hispanic social community co-created by Philip Gabbard, who will become tuStarship’s group president and general manager.

“Spanish is the second-largest language in the U.S., yet there is no Spanish-language shopping channel,” Gabbard said. “With 57 million Hispanic households in the U.S., this retail opportunity will fill an obvious void.”

Good luck with that. All such prior efforts to do a Spanish-language home shopping network have failed, we believe. Sometimes there is a “void” for a reason: The concept doesn’t work.

“Following the acquisition, and along with exciting celebrity announcements, four proprietary online technology partnerships will be revealed,” according to the press release.

“With TV, with mobile — in English and Spanish — Starshop will house a new ‘six screen’ technology, and will even change the mobile shopping experience as we know it,” Segel said.

We’re not feeling this, folks.

Evine’s Todd English sued for alleged sexual harassment

November 15, 2017

Guess it was only a matter of time before the sexual-harassment scandals that have hit the film and TV industries, as well as Washington, made their way to the home shopping world. Hello bad-boy chef and restaurateur Todd English, an HSN alum who is now on Evine sell kitchenware.

English is known as a womanizer, with the New York Post’s Page Six gossip column over the years doing stories about him in hot tubs with naked women and such. But this is different.

The Post recently reported that English and staff members of his Plaza Hotel Food Hall in Manhattan are being sued for alleged sexual harassment. That action was filed a few weeks ago by Gabrielle Eubank, according to the tabloid.

http://nypost.com/2017/11/04/top-chef-and-kitchen-staff-accused-of-sexual-harassment/

And that’s not all, folks.

In August six present and former English employees filed their own sexual-harassment suit, charging that there was a “rape culture” at Food Hall, with male staffers making obscene comments and being “sexually suggestive with pens, cucumbers and bananas,” the Post wrote.

English’s spokesman has no comment for the Post story, which went on to list a number of famous chefs and restaurant owners who have been accused of sexual abuse and harassment by female staff members.

The headline on the story was “Harvey-style sex abuse rampant in NYC dining world: workers.”

HSN Handbag Alum Sharif Lands At Evine

November 9, 2017

The game of musical chairs at the home shopping networks never ceases to amaze us.

In the latest episode, handbag designer Sharif has moved over to Evine. He left HSN, where he was for years, awhile ago. His line will debut on Evine later this month.

“I’m at the point in my career where I desire to design by my own rules,” Sharif said in a canned statement.

Is that a dig at HSN, we wonder?

“Evine has welcomed me with open arms and provided me the freedom to develop a handbag collection that represents the best of what I have to offer,” he said. “Fans of mine will delight in the unique details and unexpected mixture of materials that come together to create beautiful works of art.”

According to a press release Wednesday, “Once one of the largest handbag brands in the U.S., Sharif designs are showcased in the Esse Purse Museum alongside some of the most iconic handbag designers in the world. His newest collection at Evine will be reminiscent of Sharif’s original masterpieces and incorporate iconic design elements to create unexpected looks and distinctive silhouettes.”

Launching on Evine Nov. 29 and 30, the Sharif Handbag collection will feature “images seen in museums and provide a uniquely artistic quality, yet are extremely functional for everyday use,” according to the press release.

Here is the boilerplate on Sharif:

Sharif was born and raised in Cairo and the son of a leather artisan, so it was only natural that he continued the tradition of working as a leather craftsman. In 1979 he started his eponymous handbag company, Sharif Design Ltd., and quickly developed a reputation for quality and a dedication to his customers. Sharif grew to be the largest handbag brand in the United States in the late 1980’s and he founded the American Leather Accessory Designers guild. Sharif’s designs are in the Esse Purse Museum and he has won numerous awards over the years for his creations.

“We are very excited to welcome Sharif into the Evine family and introduce our customers to his stunning collection of handbags,” Evine CEO Bob Rosenblatt said. “I’ve known Sharif for many years, and have seen first-hand the masterful way in which he designs the pieces within his collection. He is a rebel within the handbag industry and his bags are loved by fans all over the world.”

Evine To Post Third-Quarter Results Nov. 21

November 1, 2017

Evine will report its third-quarter earnings Nov. 21 before the market opens, the home shopping network said Wednesday.

CEO Bob Rosenblatt, Chief Operating Officer and CFO Tim Peterman and Michael Porter, vice president of finance and investor relations, will host a conference call later that morning at 8:30 a.m. to review the results.

Those interested in participating in the conference call should dial 1-877-407-9039 or 1-201-689-8470 (international) at least five minutes prior to the call.

There will be a simultaneous audio webcast available at the following link:

https://event.on24.com/wcc/r/1472316/2D4FA277E38225472215B7CA47A90492

A replay of the conference call will also be hosted on the company’s website for a limited time.

Martha Stewart Serves Up $100 Turkey On QVC

October 31, 2017

QVC originally stood for Quality, Value and Convenience. As for “quality,” not so much these days.

We loved, and agreed with the reaction, to a recent TSV that QVC offered from domestic diva (and Nutley, N.J., native) Martha Stewart. What a bargain, just $99.95 for a 4.25-pound turkey, herb butter and two two-pound size dishes.

Are you kidding us? What are those buyers smoking over at QVC? And as some customers posted on Facebook, is Martha smoking weed with her co-host, Snoop Dog?

Here is the description of this pricey, golden bird:

Have you ever dreamed of having your Thanksgiving meal prepared by Martha Stewart? This ready-to-cook holiday feast makes your culinary dreams a reality. From the juicy, succulent turkey breast with rich herb butter for topping, to the heaping helpings of delectable side dishes, it has everything you need to make next family dinner as easy—and as unforgettably delicious—as possible. From Martha Stewart.

• Includes 4.25-lb turkey breast, 2.4-oz herb compound butter, and two 2-lb side dishes

• Mashed Potatoes: made with peeled russet potatoes, whole milk, cream cheese, real butter, and heavy cream

• Mac & Cheese: made with sharp white cheddar, gruyere, fontina, and Parmigiano cheese, butter, milk, and cayenne pepper; blended with elbow macaroni noodles; topped with melted butter, panko bread crumbs, gruyere, sharp white cheddar, and Parmigiano cheeses

• Creamy Spinach Casserole: made with chopped spinach, butter, whole milk, and sour cream; topped with panko bread crumbs, butter, and gruyere cheese

• Cherry Stuffing: made with chunks of crusty white bread crumbs, blended with butter, chicken broth, chopped onions and celery, herbs, and dried cherries.

QVC also had a recent TSV — a 1-carat five-stone diamond band 14K ring by Affinity — that ranged in price from $1,000 to $1,400.

But QVC isn’t the only home shopping net that’s been approaching the stratosphere in terms of prices. Either QVC or HSN (we didn’t see, someone mentioned it on Facebook) was hawking a $200 cake.

Over at Evine, MacKenzie-Childs is offering a large rolling moose for $500. We love the moose, and the other handcrafted wares that MacKenzie-Childs has, but the prices are out of this world. How about $122 for four kitchen utensils?

Guess we have to stick to Home Goods.

Proxy Battle Looming At Evine

October 20, 2017

A not very pleasant scenario is being played out at Evine, with the son of the founder of QVC looking to sweep in and take over the Minnesota-based No. 3 home shopping network.

The Minneapolis Star Tribune reported that Marvin Segel and Jim Morrison, co-founders of a New York company called StarShop, have approached Evine’s management about taking control of the business.

http://m.startribune.com/former-evine-live-executive-and-partners-trying-to-take-over-the-home-shopping-business/451478463/

The pair of raiders claim that Evine and old home-shopping methods are outdated.

“To jazz it up, Segel and Morrison, who is StarShop’s CEO, want to tap into social media influencers such as YouTubers with millions of followers in order to grow Evine’s audience and reach new consumers,” the Star Tribune said. “They also want to add a Spanish-language TV shopping channel as well as related Spanish content online and offer an enhanced experience on mobile.”

Hello, all the home shopping networks are big users of social media and have been creative in their use of mobile, which is helping to drive their skyrocketing digital sales.

The story says that Segel, the one who is the son of QVC’s founder, and Morrison tried to work with Evine by becoming minority shareholders and getting a seat on its board. Now, then want to “buy the operating assets of Evine for a 30 to 40 percent premium of its total enterprise value of between $140 to $175 million,” according to the Star Tribune.

“Segel and Morrison said it would leave Evine intact as a corporation so shareholders can reap the tax benefits of more than $100 million in net operating losses while pursuing other businesses,” the story says.

Evine has had many corporate battles before. In 2012, when it was still ShopHQ, dissident shareholders took control and named Mark Bozek as CEO. He was the genius who renamed the network Evine, and he got canned last year. Bob Rosenblatt took over.

Evine got a boost last year when investors, including music exec Tommy Mottola and designer Tommy Hilfiger, poured in $10 million for company stock.

Segel was at Evine as a consultant in 2008, and then worked at the company as an executive of vendor relations and business development before exiting.

Ex-Miss Puerto Rico Universe Comes To Evine

October 10, 2017

Is Evine looking to grab Hispanic-Latino consumers? And being half Puerto Rican, we like the fact that the channel’s working with her to help the devastated island,

The No. 3 home shopping network is bringing Puerto Rican actress, model and former Miss Puerto Rico Universe Cynthia Olavarria to sell her fashion line today, Tuesday Oct. 10. It’s called “Total Look by Cynthia.”

http://www.evine.com/search/?q=premiere%3A+total+look+by+cynthia+fashion&icid=InternalSearch_AutoSearch_premiere%3A+total+look+by+cynthia+fashion

“We are thrilled Cynthia has decided to bring her newest venture to Evine,” the network’s chief merchandising officer, Michael Henry, said in a canned statement. “She is a true powerhouse in the Latina community and has an amazing eye for style and design.”

Described as “daringly stylish,” the collection includes skirts, pants, on-trend ruffled tops, bodysuits and faux-fur jackets and vests “featuring sultry sequins, lace, mesh, cutouts and more,” according to Evine’s press release.

“As former Miss Puerto Rico Universe, and throughout my career as an actress and model I have always prescribed to the idea that you can be sexy, but still be sophisticated,” Olavarria said in her canned statement. “Feeling confident in how you look and what you wear is important at any age and it’s easier than one might think. Color, texture and luxe details make my new line fearlessly feminine, yet distinctly chic.”

Olavarria, former Miss Puerto Rico Universe 2005, has a career as and actress. She has been featured on magazine covers and international publications in addition to appearances on several telenovelas.

She is apparently best-known (not to us) for her role as Isadora Valverde on the telenovela “Tierra de Reyes,” for which she received the TU MUNDO awards for best actress.

“Puerto Rico is always in my heart,” Olavarria said. “And right now, my heart is aching for those suffering in the wake of the destruction and that is why I’m joining Evine and Direct Relief to help raise funds to support those most in need,” said Cynthia.

Evine and lavarria have joined forces with Direct Relief (www.directrelief.org) to help raise funds for supplies and medical aid in Puerto Rico in the wake of Hurricane Maria.

To make a donation, visit Evine’s donation page at http://www.evine.com/DirectRelief. 100% of donations will be used exclusively for the Puerto Rico relief effort.

Wieck’s Daughter, JTV’s Coggins Tie The Knot

October 10, 2017

There were two blog-worthy weddings in the home shopping world this weekend, and if you want to peek at the photos you can go to Facebook.

First, Jewelry Television host Nikki Coggins married her “big lug” Chuck, who is a police officer. She is now Nikki Coggins-Devotie. This Southern belle is very sweet and the couple look very happy, so we wish them luck.

https://www.facebook.com/nikki.coggins.7

And then Beverly Hills jewelry designer Victoria Wieck’s daughter RFachel tied the knot, as well. Wieck, who was on HSN for 18 years, recently joined Evine’s roster.

https://www.facebook.com/victoria.wieck

If you want to get a gander of Wieck and her daughter and husband go to Facebook.

‘Evine After Dark’ sex show returns

September 30, 2017

Evine was pleased as punch with the reaction to its first “Evine After Dark” show last week, where it hawked “intimate” items like body oils.

It was so happy, in fact, that it put out a press release on it this week. The sexy show returns tonight at 1 a.m. ET, when the kiddies are in bed and asleep.

ICYMI: Evine Debuted “Evine After Dark” and Customers are Buzzing 09/28/2017

During Friday’s late night premiere, Evine created a positive and safe environment for women to learn about – and shop for – intimacy items

MINNEAPOLIS, Sept. 28, 2017 (GLOBE NEWSWIRE) — Evine Live Inc. (“Evine”) (NASDAQ:EVLV), a multiplatform interactive digital commerce company (evine.com) introduced a new late-night shopping experience and TV talk show last weekend called “Evine After Dark,” which offered a positive and safe environment for women to purchase intimacy items. Viewers who joined the first-ever show of its kind were met with fun and flirty products, including body powder, lotions and lingerie, as well as sexual health and relationship advice from top-selling author and sexual health professional, Dr. Sari Locker.

“A little bit of history was made this weekend with our first ever ‘Evine After Dark’ show,” said Nicole Ostoya, Chief Marketing Officer at Evine. “We created this show with the belief that women, no matter their age, deserve to feel sexy and confident in their personal relationships, and especially in their own bodies. All along, our guiding principle was to provide access to intimacy products in a safe and discrete way and give them the opportunity to ask questions anonymously. We heard from many customers that were thankful to have somewhere to go for this category that was respectful and private.”

Evine viewers had an opportunity to post on Facebook their questions, as well as email a private email address (afterdark@evine.com) to leave comments or ask questions. The format and topics covered during “Evine After Dark” were positively received.

One Evine customer wrote in, saying, “I watched the full hour and the YouTube show. You were truly perfection, lending a voice to create a bridge we could all join to walk into the safe place YOU created. The format as a show is brilliant. This is the revolution of women over 35. Way to create something to not just mirror that, but continue to awaken it.”

Dr. Sari Locker said, “I’ve spent my career providing information and advice to embolden women to celebrate their inner-beauty and enjoy their sexuality. It is an honor to be part of ‘Evine After Dark,’ because it is a pioneering and exciting show. During the first episode, I received many emails from women looking for advice on how to find new ways to reconnect with their partners. I look forward to continuing to help guide Evine’s viewers each week as ‘Evine After Dark’ continues.”

“Evine After Dark” will continue to air live Friday late night at 10:00pm PT/Midnight CT/Saturdays at 1:00am ET and features luxury romance and intimacy products such as lotions, oils and body sprays, as well as elegant robes, nighties and lace bodysuits.

Each item selected for the series is designed to help women feel confident and empowered about their bodies and intimate relationships. In the creation of all of the “Evine After Dark” creative materials, none of the models were photoshopped or re-touched in order to capture the perfect-imperfections and all-natural beauty in a positive and uplifting way.

Fans are encouraged to follow along each show via Instagram at @evineafterdark and on YouTube by searching “Evine After Dark.” Viewers are invited to watch “Evine After Dark” via cable and satellite, mobile apps and live streaming online at http://www.evine.com. Evine airs on DIRECTV channels 73 and 316, DISH Network channels 134 and 228, Apple TV, Roku, Amazon Fire TV, select Samsung Smart TVs, YouTube and on the nation’s top cable providers. Find Evine in your area: bit.ly/1CNa450.

For more information on “Evine After Dark,” visit http://www.evine.com/AfterDark. For more information on Evine, visit http://www.evine.com. To check out a short video introduction of “Evine After Dark” click here.

About Dr. Sari Locker

Dr. Sari Locker is a sexuality educator, television personality, writer and keynote speaker. She is the author of four top-selling books, including The Complete Idiot’s Guide to Amazing Sex, and has been an advice columnist for many national publications. She has been a talk show host on Lifetime TV, a reporter for CBS News in New York, and has been featured as a guest on over 1,000 programs including the Today Show, Good Morning America, MSNBC, CNN, Fox News and more. She has a B.S. from Cornell University, M.S. in sexuality education from The University of Pennsylvania, M.A. and a Ph.D. in developmental psychology from Columbia University, where she is an adjunct professor.