Evive Live’s net sales were up 3 percent, to $162.3 million, a 3 percent increase in the third quarter versus last year, the home shopping network reported Tuesday.
That compared to QVC’s 4 percent revenue increase, to $1.4 billion, and HSN’s net sales rising 2 percent, to $590.6 million.
But it wasn’t a good quarter for the No. 3 home shopping network. Evine Live saw a $5.2 million net loss in the quarter, which sent its shares into a sell-off. The company also said that it had launched a spin-off channel, Evine Live Too, that offers a three-hour-delayed feed of its core network.
Evine Live’s online net sales as a percentage of total net sales increased 250 basis points to 46 percent.
Mobile remains the fastest-growing platform with net sales of $31.2 million, a 34 percent increase year-over-year.
The active customer count during the quarter increased 3 percent year-over-year, while reactivated customer count increased 4 percent.
Average purchase frequency increased to 4.1 units per customer, a 4 percent increase, while adjusted EBITDA was $200,000.
“We are pleased with our third-quarter results as the sales trends we experienced last quarter have continued,” Evine Live CEO Mark Bozek said in a canned statement. “We enter the holiday season with optimism in our merchandise assortment and growth strategies.”
Never one for brevity, here’s the rest of what Bozek had to say.
“Through a deliberate merchandising strategy launched just over a year ago, we’ve developed a more diversified product assortment of proprietary offerings with margins that are more in line with industry averages.”
“We believe improvements in our customer counts and average-purchase frequency are proof that our customers are responding positively to ‘more in our store.’ In addition, we believe our efforts to increase brand awareness and broaden our distribution footprint are important to driving incremental business in the fourth quarter and beyond.”
“With the changes we initiated a year ago to position the company for sustainable growth, we are seeing real continued momentum and, despite operating in a highly competitive retail environment, we remain confident that we’ve laid a solid foundation for top line growth and profitability in the fourth quarter.”
Home and consumer electronics was the fastest-growing category at 18 percent while all other categories, with the exception of jewelry, delivered growth of 3 percent to four percent.
The return rate for the quarter was 18.9 percent, down 230 basis points year-over-year, a five-year low.
Gross profit decreased 5.3 percent to 5.3 percent to $55.9 million. gross profit as a percentage of sales decreased 310 basis points to 34.5 percent, due in part to reduced margins in jewelry and margins.