Posts Tagged ‘second-quarter earnings’

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.

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Combined QVC-HSN Sales Slip 1%, to $1.87 Billion, in Second Quarter

August 9, 2019

This is an interesting turn of events: Qurate Retail is no longer breaking out separate financial figures, such as sales, for QVC and HSN. And the nets have a new honcho.

Qurate, parent of the two top home shopping networks, reported its second-quarter earnings Thursday. And it only broke out info for QxH, its goofy name for the umbrella company that runs and oversees the two channels. So we don’t know, at least from the 2Q press release, how QVC did versus HSN, just the combined data for QxH.

So QxH saw its revenue dip 1%, from $1.9 billion to $1.874 billion, in the second quarter compared with the year-ago quarter.

QxH reported sales declines in apparel and jewelry, which were partially offset by gains primarily in accessories and electronics, according to Qurate’s press release.

Operating income margin contracted and adjusted OIBDA margin was flat, reflecting gross margin pressure mainly from higher fulfillment (freight and warehouse) expense, which was partially offset by higher product margins, if you can make any sense of that.

QxH also incurred higher bad debt and marketing expense, according to its parent. These factors were offset by lower TV distribution commissions and customer service expense.

Lower TV distribution commissions were due in part to the accounting treatment for certain renewed HSN carriage agreements, as well as renegotiated rates at HSN and growth in off-air sales. Operating income included higher amortization expense related to HSN carriage agreements.

Beginning in the third quarter last year, HSN began renewing TV carriage agreements with several distributors — meaning cable and satellite companies — which provided multiyear upfront payments that are amortized over the life of the agreements, versus its previous convention of expensing quarterly payments as incurred. 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.

That’s too much accounting mumbo-jumbo for us, but maybe you can make sense of it.

And here’s the exciting statement from Qurate President and CEO Mike George.

“We made good strategic and operational progress, evidenced by the sequential improvement in revenue and adjusted OIBDA margin at QxH and the double-digit, year-over-year adjusted OIBDA growth at QVC International in constant currency,” George said.

“These gains were partially offset by deterioration at Zulily. We are encouraged by the resiliency of our businesses and our ability to generate high levels of adjusted OIBDA and free cash flow in a dynamic and highly competitive environment. We resumed share buybacks, repurchasing nearly 12 million shares at an average price per share of $12.88 following our last earnings call. Going forward, we remain focused on building on the collective strengths of QVC and HSN, realizing synergies and stabilizing Zulily.”

Qurate also said that it had appointed Leslie Ferraro, a former Walt Disney Co. executive, as president, QxH, effective Sept. 16.

QVC, HSN Parent To Report 2Q Earnings Aug. 7

July 14, 2019

The owner of QVC and HSN, Qurate Retail Inc., will post its second-quarter earnings Aug. 7, the company said last week.

Qurate President and CEO Mike George and Executive Chairman Greg Maffei will host a conference call to discuss results Aug. 8 at 8:30 a.m.

Following prepared remarks, the company will host a brief Q&A session during which management will accept questions regarding Qurate Retail.

The second-quarter press release and conference call may discuss Qurate Retail’s financial performance and outlook, as well as other forward looking matters.

Interested in listening in?

Call ReadyTalk at (800) 347-6311 or (323) 794-2094, passcode 3591272, at least 10 minutes prior to the call. Callers will need to be on a touch-tone telephone to ask questions. The conference administrator will provide instructions on how to use the polling feature.

In addition, the second quarter-earnings conference call will be broadcast live via the internet. All interested participants should visit the Qurate Retail website at http://www.qurateretail.com/events to register for the webcast.

Links to the press release and replays of the call will also be available on the Qurate Retail website. The conference call will be archived on the website for one year after appropriate filings have been made with the Securities and Exchange Commission.

QVC, HSN Parent To Report 2Q Earnings Aug. 8

July 16, 2018

Qurate Retail Inc., the company that now owns both QVC and HSN, will announce its second-quarter earnings Aug. 8.

Qurate President and CEO Mike George and Executive Chairman Greg Maffei will host a conference call to discuss results at 11 a.m.

Following their canned remarks, the company will field questions from Wall Street analysts. During the call, George and Maffei may discuss the financial performance and outlook of the company, as well as other forward looking matters.

Please call ReadyTalk at (800) 289-0438 or (323) 994-2083, passcode 4555818, at least 10 minutes prior to the call.

In addition, the earnings conference call will be broadcast live via the Internet. All interested participants should visit the Qurate Retail website at http://ir.qurateretail.com/events.cfm to register for the web cast.

Links to the press release and replays of the call will also be available on the Qurate Retail website. The conference call will be archived on the website for one year after appropriate filings have been made with the SEC.

Evine To Report 2Q Results Aug. 23

August 4, 2017

Evine will release its second-quarter earnings Aug. 23 before the market opens at roughly 6 a.m. CEO Bob Rosenblatt and Chief Financial Officer Tim Peterman will hold a conference call 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:

http://event.on24.com/wcc/r/1400380/564716D174B109733474197672B07CA3

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

HSN 2Q Sales Dip 4 Percent, To $532.2 Million

August 4, 2017

Looks like the second quarter another was a tough one for home shopping networks.

On Thursday HSN reported that its net sales for the quarter were $532.2 million, a 4 percent drop from the prior year. Sales grew in wellness and home, offset by decreases in electronics, beauty and jewelry.

The earnings press release talked about Liberty Interactive Corp.’s pending acquisition of HSN.

“We continue to focus on building our proprietary product pipeline which we believe will ultimately lead to growth in the business,” HSN Inc. Chief Financial Officer Rod Little said in a canned statement. “The continued strength of digital sales, and mobile sales in particular, has been very encouraging with digital sales now representing 55% of our total revenue. Mobile, which we see as our flagship, continues to be our fastest growing sales channel and a source of new customer acquisition.”

“As we prepare for the pending acquisition by Liberty, we remain committed to our strategies to improve performance both in the short and long term,” he said. “Our key priorities remain: acquiring and retaining customers via a robust and relevant product portfolio, optimizing our digital platforms and improving efficiencies throughout the business, all to drive consistent shareholder value creation.”

The No. 2 home shopping network said shipping revenue decline primarily due to the August 2016 changes in the standard shipping rates and increased promotions. The average price point decreased 7 percent, while units shipped increased 2 percent largely due to changes in product mix, according to the press release.

Gross profit decreased 5 percent to $186.8 million. Gross profit rate decreased 30 basis points to 35.1 percent, primarily due to a decrease in shipping revenue and higher shipping and fulfillment costs, partially offset by higher product margins and lower inventory reserves due to a change in accounting estimate.

The increase in shipping and fulfillment costs was primarily due to annual outbound rate increases and implementation costs associated with HSN’s ongoing supply-chain optimization initiative, the network said.

Operating expenses increased 4 percent to $147.6 million driven by about $3.7 million in transaction costs related to the merger agreement, an increase in employee-related costs, higher costs incurred as part of the supply-chain O initiative and an increase in bad debt expense, partially offset by lower stock-based compensation expense primarily due to the departure of CEO Mindy Grossman during the quarter.

Excluding non-cash charges and transaction costs, operating expenses increased 4 percent and were 25.6 percent as a percentage of net sales compared to 23.5 percent in the prior year.

Operating income decreased $15.9 million, or 29 percent, to $39.2 million. Adjusted EBITDA decreased $15.8 million, or 24 percent, to $50.5 million. The supply-chain implementation resulted in an additional $2.9 million of costs in the second quarter, which impacted gross profit and operating expenses.

HSN, QVC’s Parent To Report 2Q Earnings

July 15, 2017

HSN Inc., about to be swallowed up by QVC’s parent company, as well as that parent, Liberty Interactive Corp., will be releasing their second-quarter results early next month, both companies announced this week.

HSN will report its second-quarter earnings Aug. 3 at 8 a.m., before the market opens.

Chief Financial Officer Rod Little; Bill Brand, chief marketing officer of HSNi and president of HSN; and Judy Schmeling, chief operating officer of HSNi and president of Cornerstone Brands, “who together constitute the Office of the CEO,” will hold a conference call at 9 a.m. to review these results.

Those interested in participating in the conference call should dial 877-307-0246 or 224-357-2394 at least five minutes prior to the call. There will also be a simultaneous audio webcast available via the company’s website at http://www.hsni.com.

A replay of the conference call can be accessed until Aug. 17 by dialing 855-859-2056 or 404-537-3406, plus the pass code 54744987 and it will also be hosted on the company’s website for a limited time.

Liberty Interactive President and CEO Greg Maffei will host a conference call to discuss results for the second quarter Aug. 8, at 2:30 p.m.

Following prepared remarks, the company will host a brief Q&A session during which management will accept questions regarding both Liberty Interactive Corporation and Liberty TripAdvisor Holdings.

Maffei may discuss the financial performance and outlook of both companies, as well as the proposed acquisition of HSN.

The second-quarter earnings conference call will be broadcast live via the internet. All interested participants should visit the Liberty website at http://www.libertyinteractive.com/events to register for the webcast.

Links to the press release and replays of the call will also be available on the website, and the conference call will be archived ror one year after appropriate filings have been made with the SEC.

Michael Buble Fragrance, Iris Apfel Fashion Coming To HSN

August 6, 2016

We read the transcript of HSN’s second-quarter call with Wall Street analysts, and CEO Mindy Grossman had some juicy tidbits.

Here are some quotes we pulled from the transcript that is from Seeking Alpha:

http://seekingalpha.com/article/3996127-hsn-hsni-mindy-grossman-q2-2016-results-earnings-call-transcript?part=single

“Iris Apfel who will launch our first ready-to-wear collections exclusive to HSN, inspired by her documentary.”

“HSN is also the exclusive launch partner for Grammy Award winner Michael Bublé’s first-ever fragrance with Elizabeth Arden. Michael will be appearing on HSN as we leverage his strong social following of nearly 15 million fans across Facebook, Twitter, and Instagram.”

“And leveraging our success with Vince Camuto’s footwear, we will be intensifying our partnership to showcase a comprehensive lifestyle brand. This includes debut of his apparel collection and being the exclusive retail destination for Vince Camuto handbags.”

“And we’ll be debuting Beauty from Gina Rivera, who garnered a large following from CBS’s ‘Undercover Boss.’ The debut will coincide with the launch of her reality show ‘Beauty Boss.'”

“We will be expanding our fine and elevated fashion jewelry collections, which have demonstrated strength.”

“And as part of our intensification of the footwear category, we are partnering with Hearst Magazine’s ‘Marie Claire’ and senior editor Zanna Roberts Rassi to bring an editorial point of view to fashion, speaking of larger trends and highlighting new styles culminating in our Shoes First premiere on HSN, which will also be featured as part of the magazine’s Shoes First footwear edition.”

And from Chief Financial Officer Judy Schmeling:

“We continue to expand our presence in the over-the-top environment, most recently by utilizing our excessive content and patented Shop by Remote technology to create a new channel application that just launched on the Roku platform, HSN Beauty. This platform combines our entertaining and educational content with the ease of ordering on Shop by Remote to create a friction-less commerce experience.”

QVC Sales Up Slim Two Percent, Outlook Gloomy

August 6, 2016

The major domestic home shopping networks are having a tough year.

Liberty Interactive Corp., QVC’s parent, reported its second-quarter earnings on Friday. QVC did better than HSN, but gloomy honchos at the West Chester-based channel warned that sales really slowed down at the end of the quarter, echoing the challenges that brick-and-mortar retailers are facing.

“QVC continues forward in a choppy retail environment,” said Greg Maffei, Liberty Interactive president and CEO.

QVC’s U.S. revenue rose 2 percent to $1.4 billion in the second quarter versus the prior year. HSN, which reported its earnings on Thursday, saw its net sales for the quarter drop 3 percent, to $557.2 million.

“Beginning in early June QVC’s U.S. sales began to experience significant headwinds, which have continued,” Liberty said in its press release.

“The sales declines, as compared to prior periods, have averaged in the mid- to high- single-digit percentages. QVC has developed many initiatives intended to reverse the negative trends and QVC is optimistic, although there is no guarantee, that these actions will have a positive effect. However, even if these initiatives begin to reverse these trends, it is believed that QVC’s U.S. net revenue and adjusted OIBDA will likely experience negative growth rates for the third quarter.”

In other words, QVC’s sales will likely be down in the 3Q. QVC President and CEO Mike George had the same bad news.

“We reported solid second-quarter results, with good sales growth in most markets,” he said.

“Late in the quarter, we experienced a deceleration in demand in the U.S. that has continued. As a result, our near-term perspective is more cautious. Longer term, we remain well-positioned with our highly differentiated retail model, strong customer retention, and our ability to deliver compelling experiences across immersive commerce platforms.”

In the second quarter, QVC units sold increased 4 percent, average selling price per unit (“ASP”) decreased 3 percent to $56.60 and returns as a percentage of gross product revenue improved 82 basis points.

QVC saw growth primarily in the apparel and accessories categories, which was partially offset by declines in jewelry and electronics.

E-commerce revenue increased 11 percent to $727 million and grew more than 400 basis points to 51 percent of total U.S. revenue.

QVC’s international revenue increased 7 percent to $635 million in the second quarter.

Evine Live To Report Second-Quarter Results Aug. 24

August 5, 2016

Evine Live will release its second-quarter earnings Aug. 24, 2016, before the market opens, the home shopping network said Thursday.

Interim CEO Bob Rosenblatt and Tim Peterman, chief financial officer, will hold a conference call at 8:30 a.m. to review the results.

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

The passcode is: 13641966. There will be a simultaneous audio webcast available at the following link:

http://event.on24.com/wcc/r/1205744/B9C7AA68CA790BE786DB7D47B3312400

A replay of the conference call will also be hosted on the company’s Investor Relations website for a limited time, which can be found at: http://www.evine.com/ir.