Posts Tagged ‘first quarter earnings’

Evine to Post 1Q Earnings June 5

May 14, 2019

Evine, which recently announced it is getting a financial infusion from vendor Invicta, will release its first-quarter results June 5 before the market opens.

Newly named CEO Tim Peterman, Chief Financial Officer Diana Purcel 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.

If you want to listen in on the conference call 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:

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

Combined QVC-HSN 1Q Sales Drop 4%, to $1.9 Billion

May 9, 2019

QVC’s and HSN’s combined revenue slid 4% in the first quarter versus last year, to $1.9 billion, in a performance that even Mike George couldn’t put a good spin on.

The two domestic home shopping networks, merged in a unit named QxH by their parent Qurate Retail Inc., for the first time reported their sales as one entity.

“Our first quarter performance was disappointing amidst a changing retail and media landscape,” George, president and CEO of Qurate Retail, said in a canned statement.

“Our recent results have been more variable as we navigate the evolution of our business model and the integration of HSN, fine-tune our investments, and strike the right balance between sensible revenue growth, margin expansion, new customer acquisition and our strategic initiatives,” he said.

“We are taking a disciplined approach, investing in initiatives to drive high-quality customer growth and engagement, broaden and deliver our assortments, particularly across new digital platforms, and optimize our fulfillment network. Our customer fundamentals remain strong, including customer count, retention and purchase frequency. We are confident we are taking the right actions to deliver attractive operating margins and free cash flow for the long-term.”

So what happened?

QxH experienced sales declines in home, jewelry and beauty, which were partially offset by gains in electronics with modest growth in fashion (apparel and accessories), according to the first-quarter press release.

QxH enjoyed strong sales growth in off-air products; however, these gains were not sufficient to offset lower sales of on-air items.

“Operating income and adjusted OIBDA margin) contraction was primarily due to higher inventory management costs, fulfillment and marketing expenses, which were partially offset by lower TV distribution commissions and higher product margins,” the press release said. “Lower TV distribution commissions at QxH are in part due to the accounting treatment for certain renewed HSN carriage agreements (described below). Operating income also included higher amortization expense related to the amortization of HSN carriage agreements.”

Starting in the third quarter last year, HSN began renewing TV carriage agreements with several distribution partners, which provided multiyear upfront payments that are amortized over the life of the agreements, versus its previous convention of expensing quarterly payments as incurred, according to the press release.

This accounting change has a positive impact on QxH’s adjusted OIBDA with a corresponding increase in QxH’s amortization expense, which is neutral to operating income each period and cash neutral over the life of the agreements.
Roger that, if you have an accounting degree.

If you want to hear the juicy details, Qurate Retai President and CEO Mike George and Executive Chairman Greg Maffei, will discuss the earnings on a conference call which will begin at 8:30 a.m. (E.D.T.) on this Friday, May 10. The call can be accessed by dialing (800) 458-4121 or (323) 794-2093, passcode 3078914, at least 10 minutes prior to the start time. The call will also be broadcast live across the Internet and archived on our website.

To access the webcast go to Links to this press release and replays of the call will also be available on Qurate Retail’s website.

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

June 3, 2018

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.

QVC Sales Up 3 Percent, HSN Down 9 Percent in 1Q

May 13, 2018

The owner of QVC and HSN now has a new name, Qurate Retail Inc., and the company reported first-quarter earnings last week. The bottom line on the bottom line is that QVC was up, and HSN was down.

QVC saw its revenue rise 3 percent, to $1.417 billion from $1.37 billion year-over year.

Not so good at HSN, where revenue dove 9 percent, to $509 million from $562 million. Guess Mindy Grossman made her exit to Weight Watchers and Oprah Winfrey just in time.

“We are pleased to continue our positive revenue performance at QVC and zulily,” Qurate President and CEO Mike George said in a statement.

“QVC US revenue grew revenue for the third consecutive quarter and QVC International continued its track record of growth,” he said. “ In addition, QVC and zulily posted solid new customer acquisition in the quarter, and QVC continued to extend its reach to developing platforms like Roku and Facebook Live and grow customer engagement. While HSN and Cornerstone results remain challenged, we are confident in our ability to turn around both businesses.”

QVC US realized year-over-year sales gains in all categories, except jewelry and electronics in the quarter. Operating income margin expansion reflects lower amortization as a result of the roll-off of purchase accounting amortization from Qurate Retail’s acquisition of QVC.

Qurate adopted new accounting standards in the quarter, and as a result QVC US has classified about $26 million of revenue from its private-label credit card program in net revenue for the three months ended March 31. Excluding the impact of this accounting adjustment, QVC US revenue grew 2 percent in the first quarter.

Here the sad news on HSN from the 1Q press release:

Although HSN’s results are only included in Qurate Retail’s results beginning Jan. 1, 2018, we believe a discussion of HSN’s stand-alone results compared to the prior year period promotes a better understanding of the overall results of its business.

HSN has reclassified certain costs between line items to conform with Qurate Retail’s reporting for ease of comparability for the periods presented.

In the first quarter, HSN revenue declined in all categories, except beauty.
Average selling price declined primarily driven by a product mix shift away from electronics, which typically carry higher price points. Return rate improved due to a continued positive trend in several categories.

The decline in operating income margin is primarily due to purchase accounting amortization and transaction related costs. Adjusted OIBDA margin declined primarily due to higher inbound and outbound shipping costs and deleveraging of fixed costs due to the decrease in net revenue, offset by higher product margins, lower personnel expenses driven by integration-related synergies and lower bad debt expense.

As a result of Qurate Retail’s adoption of ASC 606 (new accounting standards), HSN has classified approximately $4 million of revenue from its private-label credit card program in net revenue for the three months ended March 31, 2018.
Excluding the impact of this accounting adjustment, HSN revenue declined 10% in the first quarter of 2018.

QVC Reports 5 Percent Sales Gain, To $1.4 Billion

May 10, 2016

QVC’s revenue rose 5 percent to $1.4 billion in the first quarter, with operating income increasing by 14 percent, the home shopping network’s parent, Liberty Interactive Corp., reported Monday.

The domestic channel saw growth in the apparel, accessories and home categories, which was partially offset by declines in jewelry and electronics.

That compares to the 4 percent sales slide, to $578.4 million, that HSN just posted for the first quarter.

“Our fashion businesses continue to be a key driver of growth globally,” QVC President and CEO Mike George told analysts, according to a transcript from Seeking Alpha.

“We had terrific success with proprietary designer brands such as LOGO by Lori Goldstein, Susan Graver and Lisa Rinna in the U.S.,” he said. “Our fashion businesses continue to be a key driver of growth globally. We had terrific success with proprietary designer brands such as LOGO by Lori Goldstein, Susan Graver and Lisa Rinna in the U.S. Our strong performance in accessories was driven by footwear including Vionic, Skechers and Clarks, the resurgence of the swimwear business and intimate apparel. We had several successful fashion launches in the quarter, most notably the debut of C. Wonder on an exclusive basis.”

George also talked about QVC’s partnership with NBC’s “Today Show.”

“This time, we’ve focused our attention on mom entrepreneurs, and nine of the best entrants made it to a week-long series on the ‘Today’ show, where viewers picked their favorite products,” he said. “And the winner, Krista Woods, sold out her product in a few minutes, GloveStix, on our Saturday morning program.”

On the jewelry front, George said,”Jewelry continues to be soft globally. We saw continued declines in the bronze, gold and silver categories, and we continue to refocus assets into better performing categories such as our proprietary Diamonique and Affinity brands. And we’ll be adding a number of new designer brands later this year such as Stella & Dot, Mario Buccellati, Jane Taylor and Franco P.”

QVC’s e-commerce revenue increased 10 percent to $698 million and was up to 50 percent of total U.S. revenue in the quarter from 47 percent a year ago.

Units sold increased 7 percent, the average selling-price-per-unit decreased 3 percent to $60.03 and returns as a percentage of gross product revenue improved 184 basis points.

“We generated very solid top-line growth, with local currency gains in nearly every market,” George said.

“We continued to benefit from our strategies and investments to enhance and extend the reach of our commerce platforms,” he said. “We delivered double-digit gains for both consolidated e-commerce revenue and mobile orders. Our top-line performance and the continued expansion of our commerce platforms demonstrate how strongly the QVC brand resonates with consumers.”

Greg Maffei, Liberty Interactive president and CEO, also gave QVC a shoutout.

“QVC generated another strong quarter of revenue growth, particularly in the US, and posted impressive increases in mobile penetration of orders in the US and on a consolidated basis,” he said. “Zulily started off strong in 2016 with accelerating revenue growth and a six-fold increase in adjusted OIBDA on strong operational execution.”

For the quarter, the QVC Group, which includes all the company’s international home shopping network, saw its revenue increase 22 percent to $2.4 billion and its operating income decreased 13 percent to $206 million.

HSN Posts 10 Percent Sales Jump In First Quarter, To $600 million

May 7, 2015

It looks like HSN enjoyed a good first quarter, with net sales rising 10 percent to $600.5 million, the home shopping network reported Wednesday.

But, dang it, there was sales growth in all divisions except our favorite category, jewelry. Hope that doesn’t mean that HSN will start limiting its offerings of shiny baubles!

The results include sales associated with a direct-response television marketing campaign that started during the fourth quarter and contributed to 2 percent of this growth. We don’t know anything about this direct-response campaign.

HSN’s digital sales increased 18 percent with penetration increasing 280 basis points to 40.7 percent. The return rate improved 60 basis points to 17.7 percent, mostly due to changes in product mix. Units shipped increased 8 percent and average price point increased 2 percent.

Gross profit increased 9 percent to $207.5 million. Gross margin decreased 40 basis points to 34.6 percent primarily due to an increase in inventory reserves.

Operating expense leverage (excluding non-cash charges) improved 60 basis points to 23.5 percent.

HSN Inc.’s net sales, which include the shopping channel and the Cornerstone unit, were up 8 percent over the prior year to $841.9 million. Cornerstone’s net sales increased 4 percent to $241.4 million, including 5 percent growth in digital sales.

HSNi’s adjusted EBITDA increased 22 percent to $73.2 million, while its adjusted EBITDA increased 12 percent to $66.2 million. Cornerstone’s adjusted EBITDA increased $6.3 million to $7 million primarily due to strong performance at Garnet Hill. HSNi’s operating income increased 36 percent to $57 million.

Adjusted earnings per share increased 26 percent to 63 cents compared to 50 cents in the prior year.

“Our performance in the quarter reinforces the experiential power of our content and our ability to create engagement across our platforms,” HSN Inc. CEO Mindy Grossman said.

“HSNi had net sales growth of 8 percent and Adjusted EBITDA growth of 22 percent,” she said. “These results demonstrate the continued execution of our strategy to drive commerce by creating personal connections with our customers and offering unique and compelling products. Once again, accelerated performance in digital was a key factor in our strong growth momentum with digital up 12 percent, representing half of our total business. Mobile sales grew 31 percent for the quarter, with penetration at 18 percent of total sales.”

ShopHQ Sees 6 Percent Sales Gain In First Quarter

May 21, 2014

This may not be good news for ShopHQ’s dissident shareholders: The No. 3 home shopping network had a pretty good first quarter.

ShopHQ’s net sales in the first quarter rose 6 percent to $160 million, boosted by strong customer demand in fashion, accessories and beauty, health & fitness.

That compares to the 1 percent increase that QVC saw, to $1.3 billion, and the 1 percent dip that HSN experienced, to $544.5 million.

You can see ShopHQ’s slide show for Wall Street analysts on this link:

Gross profit dollars increased 5 percent to $60 million in the quarter, while gross profit as a percent of sales remained strong at 37.6 percent, compared to 37.7 percent in the year-ago period.

ShopHQ’s adjusted EBITDA was $6 million, flat compared to a year ago, as the company’s sales and gross profit improvements were offset by investments in channel positioning within TV distribution costs.

In addition, net shipped unit volume increased 28 percent over the same quarter last year, resulting in higher variable costs to support this growth.

ShopHQ’s first-quarter adjusted net income was $2 million, or three cents a share. That compares to the year-ago period’s adjusted net income of $1 million, or two cents a share.

In its press release, the network said that its strategic focus on building its ShopHQ customer base yielded solid gains, as total customers purchasing over the last 12 months rose 22 percent to a record 1.4 million.

Customer growth was driven by the company’s ongoing focus of broadening its merchandise offerings as well as strategically lowering its average price point, which decreased to $76 in the quarter compared to $93 in the same quarter last year, according to the release.

These changes support continued customer growth and increased purchase frequency, which rose 9 percent in the quarter over the same period last year, the statement said.

“We are pleased with our Q1 results, which marked the 8th consecutive quarter of sales growth and positive adjusted EBITDA,” ShopHQ CEO Keith Stewart said in a canned statement.

“We continue to make progress in growing revenue and gross profit while repositioning our product assortment,” he said. “Our success in achieving increased customer growth and a lower average price point at strong margins accelerated throughout Q1 and should provide us with positive momentum for the second quarter.”

Stewart’s lieutenant also had a few words.

“Our balance sheet condition remains strong,” EVP & CFO William McGrath said.

“We ended the first quarter with $27 million in cash and restricted cash compared to $31 million at the beginning of the year. Net use of cash includes $5 million in working capital and $3 million in capital expenditures partially offset by the Company’s positive adjusted EBITDA results in the quarter. In February, we increased our PNC credit facility from $50 million to $75 million. This $25 million increase will facilitate the 2014 expansion of our warehouse distribution facility to support anticipated growth.”

HSN’s Sales Slip 1 Percent In First Quarter

May 2, 2014


HSN had a tough first quarter, with sales slipping a tad. Retail this year has generally been a bust, folks.

The No. 2 home shopping network reported Thursday that net sales were $544.5 million, a drop of 1 percent from the prior year.

Mindy Grossman

Mindy Grossman

HSN Inc., which includes the network and the Cornerstone unit combined, saw its net sales rise 1 percent, to $777.4 million. Cornerstone’s net sales increased 5 percent to $232.9 million.

“Similar to the overall retail sector, our results were impacted in the first quarter partially due to severe weather across the country, and softness in women’s apparel, particularly at Garnet Hill (part of Cornerstone),” HSN Inc. CEO Mindy Grossman said in a prepared statement.

“At HSNi, we are seeing improved performance, as demand strengthened throughout March. I believe our opportunity to drive growth remains intact and we are pleased with the areas of strength that we demonstrated during the quarter, including an increase in digital penetration of 220 basis points to 47 percent, mobile growth of 44 percent and reaching our highest customer levels to date.”

The home shopping network’s digital sales grew 5 percent, with penetration increasing 220 basis points to 37.9 percent. Sales increased in home design, offset by lower sales in electronics, jewelry and health.

The return rate decreased 170 basis points to 18.3 percent, primarily due to changes in product mix. The units shipped increased 1 percent while the average price point decreased 3 percent.

The gross margin was 35 percent, consistent with the prior year. The gross margin was favorably impacted by product mix and less clearance sales, offset by lower net shipping margins.

Operating expenses as a percentage of net sales (excluding non-cash charges) decreased 20 basis points to 24.1 percent of net sales.

Adjusted EBITDA was $59.1 million compared to $58.9 million in the prior year. Operating income was $48.6 million, consistent with the prior year.


ShopNBC’s Sales Rise 11 Percent In First Quarter, To $151.4 Million

May 23, 2013

Wow, it looks like ShopNBC actually had a good quarter.

The home shopping network Wednesday reported first-quarter sales of $154.4 million, up 11 percent from the year-ago quarter. The company’s adjusted EBITDA was $5.8 million, and net income was $1 million.

That net income isn’t much, but a year ago ShopNBC had a loss.

Earlier this month, HSN reported that its sales saw a 2 percent uptick in the first quarter, to $550.1 million, versus the year-ago period.

ShopNBC’s sales growth was driven by significant improvement in the home & consumer electronics category and strong results in the fashion & accessories category, according to ShopNBC.

Adjusted EBITDA improved to $5.8 million versus an adjusted EBITDA loss of $1 million for the same quarter last year, reflecting improved sales and lower TV distribution costs. The home shopping network which is changing its name to ShopHQ,  reported net income of $1.0 million, or two cents a share, compared to a year-ago net loss of $8.7 million, or 18 cents a share.

Net shipped units increased 12 percent to nearly 1.5 million, reflecting continued improvements in the company’s merchandise mix and a modest decline in average price points.

Internet sales penetration increased 30 basis points to 46.2 percent. Mobile transaction volume represented 23 percent of Internet sales compared to 13 percent a year ago.

“We have extended our positive momentum from 2012 with continued improvement in our product diversity, customer growth and customer service metrics,” ShopNBC CEO Keith Stewart said in a canned statement. “Although we are encouraged by this performance, there is still plenty of work ahead of us. Key areas of focus remain executing our merchandising strategy, enhancing the customer experience, and improving the efficiency of our operations.”

We should say so!

“We strengthened our balance sheet during the first quarter,” ShopNBC  Executive Vice President and Chief Financial Officer William McGrath said. “ValueVision’s (i.e. ShopNBC) cash balance, including restricted cash, increased by $7 million to $36 million in Q1’13. The change in our cash position reflects positive EBITDA results and the seasonal timing of cash receipts from fourth quarter receivables, partially offset by increased inventory investments in the period.”

His final comment: “Earlier this month, we expanded our PNC line of credit to $50 million from $40 million, and extended the term through May 2, 2018. The additional $10 million in undrawn availability under the expanded facility improves liquidity and supports continued investment in the growth of our business.”

ShopNBC To Post First-Quarter Earnings May 22

May 9, 2013

ShopNBC will release its first-quarter results after the market closes on May 22. Management will host a conference call/webcast to review the them at 4:30 p.m. the same day.

CEO Keith Stewart will participate in the call, as will President Bob Ayd, Chief Financial Officer Bill McGrath and Chief Operating Officer Carol Steinberg.

The call and webcast are open to the general public.


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