Posts Tagged ‘ShopHQ’

ShopHQ’s Third-Quarter Revenue Drops 13%

November 26, 2019

In other ShopHQ news that we never got wind of last week, the No. 3 home shopping channel reported its third-quarter earnings. Not a pretty picture.

It posted net sales of $115 million, down about 13% from $132 million in the year ago-period.

On the bright side, the network is bleeding less red ink. It lost $6.7 million in the third quarter compared with $9.2 million a year ago.

ShopHQ also boasted that it had launched its male-targeted home shopping channel, the Bulldog Shopping Network. Where it launched, we have no idea.

ShopHQ also said it has struck exclusive relationships with with seven new home and fashion brands: John O’Hurley, Heather Dubrow, Romero Britto, Danny Seo, Heather Hall, Bear Creek Cattle Steaks and Leota Fashions. The network also cited its deal with Shaquille O’Neal, who will be doing a live show.

“I want to explain the significance of our Shaquille O’Neal partnership announced yesterday,” Tim Peterman, CEO of ShopHQ parent iMedia Brands, said in a statement. “Specifically, why we worked so hard to make this happen and why we believe the size of this opportunity is significant.”

Peterman continued, “First and foremost, Shaquille O’Neal is more than a celebrity to iMedia. We know him. We know his work ethic, what kind of partner he will be and how good of an entertainer and entrepreneur he is. That is the ‘why.’ He’s that rare, authentic personality who has grown beyond his achievements to become a pop culture icon.

“iMedia estimates the size of the financial opportunity here to be meaningful. Shaq’s iconic status combined with iMedia’s television and e-commerce retailing expertise create a unique opportunity for iMedia to build a profitable, omni-channel business that iMedia believes could exceed $200 million in annual revenues.”

Then Peterman got into the bad news.

“Regarding our operating results, prior to my arrival in May, the revenue decline for the previous six months was 17.2%,” he said.

“During these past six months, we successfully reduced that decline to 12.7%,” Peterman said. “We accomplished this by launching multiple exciting brands, making important staffing changes, simplifying the promotional framework and introducing an innovative loyalty program. Although the revenue decline did slow, it did not slow as fast as we wanted. The reason was the merchandising effort in the company was more troubled prior to my arrival than previously expected, particularly in our two long-lead businesses of Home and Fashion.”

Here are some other bullet points from the third-quarter results:

* Net sales decline driven by assortment pressure in the long lead time businesses of Home and Fashion & Accessories, which required an over-reliance on the Jewelry & Watches category.

* Subscription sales increased 10%, reflecting strong loyalty within the Beauty & Wellness category.

* Gross margin in the third quarter increased 30 basis points to 36.1% compared to 35.8% in the year-ago quarter. The improvement was driven by a strong discipline to increase rates, which helped to offset slight product mix pressure.

* The return rate for the quarter was 19%, a 90-basis point year-over-year improvement driven by return rate reductions within the Watches, Fashion & Accessories and Consumer Electronics categories.

* Average selling price increased 5% to $66 driven by increases in the Jewelry and Home & Consumer Electronics categories, combined with a mix shift into Jewelry & Watches.

* Operating expenses decreased 15%, or $8.1 million, year-over-year to $47.4 million, reflecting decreases of $9 million in distribution and selling expenses and $800,000 in general and administration expenses, partially offset by a $1.5 million increase related to restructuring costs.

He’s No David Venable: Shaquille O’Neal To Debut ‘In the Kitchen with Shaq’ on ShopHQ

November 26, 2019

We are way behind in our blogging when it comes to ShopHQ. In our defense, we had been on the email list for all of the shopping network’s press releases. But all of a sudden we mysteriously stopped getting them, like this juicy tidbit about a fellow New Jersey native.

ShopHQ has announced it had struck a deal for basketball great Shaquille O’Neal, who is from Newark, to host a live program, “In the Kitchen with Shaq,” as well as reaching a product partnership for a collection of kitchenware, cookware, and grill products.

“In the Kitchen with Shaq” is set to broadcast live, starting next year, as a weekly one-hour program hosted by the Hall of Famer. It will feature “Shaq-approved” kitchen, and cookware essentials.

Who does he think he is, George Foreman?

“In the Kitchen with Shaq” will originate from Atlanta and is confirmed for 30 live broadcasts.

“I’m so excited to partner with ShopHQ on ‘In the Kitchen with Shaq,’” O’Neal said in what was definitely a canned quote.

“Nothing brings people together like food and my new collection features top-of-the-line kitchen necessities that anyone can use to prep, cook and serve their favorite recipes,” he said. “I can’t wait to unveil it on ShopHQ®.”

ShopHQ CEO Im Peterman chimed in, “Shaquille’s business acumen has no bounds, and we know that his fan base will be excited not only to see Shaq on their television screens but also in their kitchens.”

We have written about O’Neal in our day job, because he has invested in several real estate projects in his hometown, Newark.

Here’s the boilerplate on O’Neal:

Shaquille O’Neal is one of the world’s most successful athletes-turned-businessmen, whose accomplishments both on and off the court have translated into a highly sought-after consumer brand. As a business mogul, sports analyst, DJ, restaurateur, and brand ambassador, O’Neal’s unique “Business of Fun” mantra resonates throughout each of his countless endeavors.

The 15-time NBA All-Star’s unprecedented athletic career spanned nearly two decades and earned him countless awards and honors, including NBA Most Valuable Player, NBA Rookie of the Year, four NBA Championships and a First Ballot NBA Hall of Famer. Currently, O’Neal is an analyst on TNT’s Emmy Award-winning Inside the NBA, and will be premiering his life chronicling reality series, Shaq Life, in 2020.

O’Neal, who has a PhD in Leadership and Education, gives back through a number of annual philanthropic programs including Shaq to School, Shaqsgiving, and Shaq a Claus.

The debut of his Los Angeles restaurant, Shaquille’s, along with his Las Vegas eatery, Big Chicken, has further elevated Shaquille’s tycoon status he has positioned him as a successful restaurateur. A second Big Chicken location is slated to open in Glendale, CA and will debut at sea on Carnival Cruise Lines Radiance and Mardi Gras.

ShopHQ Starts Selling CBD Products

November 21, 2019

ShopHQ, the first home shopping network to hawk vibrators, has taken another pioneering step in electronic retailing. The channel is now selling CBD-infused products.

ShooHQ had a show dedicated to CBD topical lotions and creams last night.

https://www.shophq.com/search/?q=cbd&icid=InternalSearch_Default_cbd

We got a crash course on CBD during our day job a few weeks ago, when we wrote a story on what claims to be the first national CBD coffee shop planning to open in our hometown of Montclair, NJ.

https://product.costar.com/home/news/shared/1643915440

Here’s a summation of what we learned:

* CBD stands for cannabidiol, the nonpsychoactive ingredient found in large quantities in hemp and small quantities in marijuana that’s said to promote relaxation, heal pain and reduce inflammation.

* National retailers such as Walgreens are starting to sell CBD-related products, such as topical creams.

* Hemp has been described as “a cousin of the marijuana plant,” and hemp and marijuana both have CBD as one of many components.

* The U.S. government legalized hemp cultivation nearly a year ago, but federal regulations for the retail sale of CBD-infused products meant for human consumption haven’t been promulgated yet.

We tried CBD drops ourselves to relieve stress. It was a very low dosage, too low to have an impact, we think.

But we plan to try it again, and applaud ShopHQ for going out a bit on a limb to start selling CBD products.

Indigo Moon Rises Again At ShopHQ

November 6, 2019

It was a flash from the past. A few days ago we saw that ShopHQ is now selling the Indigo Moon clothing line.

Way back when QVC used to sell this apparel, and we bought quite a bit of it then.

It has a patch-worky, homespun kind of look, like something you would find in a boutique, not in a traditional department store. The pieces always looked so original.

Nothing struck our eye on ShopHQ, but we were glad to see Indigo Moon pop up again.

Suzanne Somers Poses Nude for Birthday, Sues QVC

October 28, 2019

This blog is a tease, and if we could find out more we would, but here it is: Veteran home shopping vendor Suzanne Somers has filed a lawsuit against QVC.

Bloomberg Law, which requires a subscription to get the full text of its news stories, wrote about the suit about a week ago. The case is Docket No. 19-cv-4773.

https://news.bloomberglaw.com/mergers-and-antitrust/suzanne-somers-sues-qvc-alleging-dietary-supplement-scheme

Actress, author and entrepreneur Somers — who has sold products on HSN, ShopHQ and QVC — has charged QVC with fraud and antitrust violations in the Eastern District of Pennsylvania, “claiming the at-home shopping company used catch-and-kill tactics to favor another dietary supplement over hers,” according to Bloomberg Law.

It reported:

Somers, the former star of the TV sitcoms “Three’s Company” and “Step By Step,” sells supplements through her company SLC Sweet Inc., according to her complaint. Before inking a deal with QVC, she marketed the products through her own website and platforms run by other home shopping businesses, including HSN Inc. and Evine, now known as ShopHQ.

Around the time QVC was negotiating with Somers, it was also…

But that’s all we could read without paying for a sub.

This brouhaha broke about the same time as another tempest in a teapot, when Somers posed topless, her arms across her chest, on her 73rd birthday 0ct. 16. She posted the photo on Instagram, causing a furor over whether a woman her age should have been a bare-naked lady or not. Publications like The New York Post and People magazine wrote about it.

Frankly, we were far more disturbed to see her and her husband Alan Hamel in a video, where he had painted his toenails the same deep color blue that we got for our pedicure yesterday.

Paula Deen To Debut Jewelry Line On JTV

October 14, 2019

Paul Deen and her sons were a fixture on Evine, now known as ShopHQ. She offered kitchenware, apparel and even beauty items.

https://www.shophq.com/b/beauty/paula-deen/?icid=DB-_-B-_-PaulaDeen-_-100618

Now she has another pan on the fire, to mangle a cliche.

We were among the folks who saw the promo Friday night on Jewelry Television saying the Southern belle was bringing a line to that home shopping network.

We never saw Deen on ShopHQ. We do know she also did an apparel line for that channel. Now it’s jewelry for JTV.

https://www.jtv.com/pauladeen

Here’s what JTV.com has to say:

Dress yourself in tasteful and dazzling designs from best-selling author and restaurant entrepreneur Paula Deen. Inspired by the rich heritage and coastal feel of Paula’s adopted and beloved hometown of Savannah, Georgia, this charming collection showcases her personal passions, along with her southern style and spirit.

And then there is this full-fledged pitch:

Culinary icon, best-selling author and restaurant entrepreneur Paula Deen is serving up a new dish made up of dazzling jewelry designs. Known as the Queen of Southern Cuisine, Deen is adding another jewel to her crown with stunning styles that symbolize her spirit and personal sense of style. The Paula Deen Jewelry collection celebrates her everyday inspirations including the joy of family, life’s simple pleasures and the most meaningful parts of her life.

Inspired by the rich heritage and coastal feel of her adopted and beloved hometown of Savannah, Georgia, the Paula Deen Jewelry collection features several pieces with intricate, ornamental details found in the historic homes and buildings throughout the city. Some of the most well-known architectural features in Savannah are the cast iron and wrought iron fences, gates, and stair rails. Many of the filigree styles in the collection are taken from Savannah’s beautiful wrought iron work and allow everyone to add a piece of Paula’s adopted hometown to their wardrobe.

Another source of Paula’s inspiration for Paula Deen Jewelry is the Atlantic waters running along the coast of Savannah. Between living on the water with her husband Michael, a tugboat captain, and fishing, the water is a huge part of Paula’s life. One of her most loved hobbies is shelling and creating her own crafts and designs with seashells. One of Paula’s favorite pieces in the collection is a seashell necklace with flowing tassels and gold ornamental plating surrounding the shell. She believes every woman needs classic pearl pieces and the pearl accent on this necklace adds a timeless look to a fun and bold accessory.

It’s no surprise that Paula enjoys sharing her passion for jewelry as much as her passion for cooking and entertaining. She loves to wear large hoops that can work with any outfit or for any occasion. She also loves necklaces that features a variety of styles and design elements, including long and adjustable lengths, two tone colors such as gold and silver, along with ornamental details. Discover all your favorites from Paula Deen Jewelry, available exclusively on JTV and jtv.com.

In addition to working on her new jewelry collection, Paula Deen continues to be a best-selling author and restaurant owner. She has sold over 11 million copies of her 18 cookbooks. Her 2019 cookbook, Paula Deen’s Southern Baking, features 125 brand-new, soon-to-be-classic baking recipes for casseroles, breads, cakes, pies, and a whole lot more. The Lady & Sons restaurant in Savannah that Paula founded with her sons, Jamie and Bobby Deen, remains one of the country’s most popular regional restaurants.

Since 2015, Paula has opened six new restaurants, including Paula Deen’s Family Kitchen in Pigeon Forge, Tennessee; Myrtle Beach, South Carolina; Branson, Missouri; Destin, Florida; and Panama City Beach, Florida; and Paula Deen’s Creek House in Savannah, Georgia.

Veteran Hosts Kimberly Wells, Brian Kessler Depart From ShopHQ

October 11, 2019

So it looks like another home-shopping host slaughter, or mass exit, this time at ShopHQ.

On Facebook someone pointed out that Kimberly Wells, Brian Kessler and Kristine Kvanli were no longer on the No. 3 shopping channel’s host page.

The poster asked, “Was there an announcement that they’re gone?”

No, there wasn’t. But in fact, those three hosts — two of them longtime veterans of ShopHQ — are off the online listing.

https://www.shophq.com/p/cc/host/meetthehosts/?stop_mobi=yes&icid=gft-_-meethosts

And Wells’ FB now says she is a former show host at ShopHQ.

She also wrote, “I’ve had the absolute time of my life sharing, connecting and shopping with your for the last 22 years. As you know, I am a passionate woman who thrives on life’s energy, optimism & wonder and I cannot wait to see what the universe has in store for me.”

Wow, 22 years!

We liked Wells and Kessler. She did the “After Dark” shows, where the network sells adult items like vibrators and lubricants. We watched some of those programs and think she did a tasteful job.

We recall years ago when the network glammed up Kessler, getting rid of his glasses and spiffing up his wardrobe.

Not a good change for ShopHQ, as far as we are concerned.

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.

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.

Evine Sales Dive 16% in 1Q, Cans 11 Top Execs As Part of Blood Bath, Back To ShopHQ

May 30, 2019

We bet Evine is glad its first quarter is over. But the execs who got pink slips we’re sure are not happy. Oh, and the name is also going back to ShopHQ. And there’s going to be Shop Bulldog channel for men, and a new Spanish-language one, too.

It’s a lot to digest.

First of all, the No. 3 home shopping network saw its sales nosedive 16% in the first quarter, to $131.5 million versus the prior year. It also suffered a net loss of $21 million, compared to net loss of $3 million in the prior year.

New CEO Tim Peterman, who rejoined the company earlier this month, wasted no time wielding the ax. In one of the worst corporate-speak euphemisms we’ve ever heard, he called the network’s mass layoffs “a cost optimization event” that will eliminate $15 million in annual overhead costs.

“This event included a 20% reduction in non-variable workforce and the permanent elimination of the following 11 senior executive roles: EVP, Product Sourcing & Business Development; EVP, Managing Director of Brand Development; EVP, Chief Human Resources Officer; SVP, Chief Merchandising Officer; SVP, Chief Accounting Officer; VP, Site Merchandising & Customer Analytics; VP, Customer Operations; VP, GMM Home; VP, Planning; VP, Marketing; and VP, GMM Beauty,” Peterman said in a statement.

As for the name change, here we go again.

“In the second quarter, we are planning to change the name of the Evine network back to ShopHQ, which was the name of the network in 2014,” Peterman said. “ShopHQ is easier to recognize for existing television retailing customers, who spend over $9 billion annually with television retailers in U.S. We believe this more intuitive and recognizable name will allow us to better promote to our network and build our customer file again. Our conclusion from the review of the customer impact data related to the change to Evine in 2015, was that it was not positive.”

Peterman made no excuses for the network’s performance, since he wasn’t responsible for it.

“I am excited to rejoin Evine as its new CEO,” Peteman said. “Although we have only been working as a team again for less than a month, we have already identified the primary causes for Evine’s dramatic financial declines these last few quarters and begun to implement focused remediation actions.”

“In terms of our first quarter, 2019 performance, there is no other way to say it – our performance was poor.”

No sh-t.

“In fact, our performance over the past three quarters has significantly missed expectations, and we must perform better for our shareholders and employees,” Peterman said. “Our plan to reverse our recent negative financial trend is clear, exciting and already in motion.”

This has included hiring Jean Sabatier for the new post of executive vice president, chief commerce officer.

“This is an important change expected to re-establish operating fundamentals in pricing, merchandising, programming and planning,” Peterman said. “Jean rejoins the company after having served as SVP, Sales & Product Planning and Programming from 2008 to March 2017. Most recently, Jean has served as a planning and programming consultant in both Germany and Italy to HSE24, an omnichannel retailer.Prior to joining Evine in 2008, Jean spent 11 years at QVC.”

Peterman added, “We are optimizing the current merchandising mix to drive better customer engagement and immediately improve our merchandising margin and shipping margin. We expect this changed mix will lower our variable costs as a percentage of revenue. This is a cornerstone remediation effort that we anticipate will create an increase of 5% to 7% in the airtime mix of our strongest categories of jewelry, beauty, wellness and watches, and a corresponding decrease of 5% to 7% in the airtime mix of our lowest performing categories of home and fashion.”

Peterman also cited the $11 million in additional working capital it’s freceived via Invicta Watch Group investment transaction.

“We secured the services of Eyal Lalo, as our new vice chairman, and we expect he will help us reignite our vendor community with passion while also helping us find and launch new vendors to strengthen our product assortment in all of our merchandising categories,” Peterman said. “This is also a cornerstone of our remediation effort. In the last three years, Evine has not launched a single brand that has exceeded $10 million in annual revenues. Eyal is already making a difference for us in this area.”

Here’s the new interactive media game plan:

Using our “service fee” business model:

Expanding Evine’s existing 3PL service offering. In 2017, Evine launched its 3PL services business unit and signed its first customer, G-III Apparel Group, in 2018 with brands such as Karl Lagerfeld Paris, DKNY and G.H. Bass.

This year we expect to add customers and expand our service offering to provide a “one-stop commerce services offering” targeting brands interested in propelling their growth using our unique combination of assets in television, web and 3PL services. We will also seek to add services in the AdTech space monetized with advertising and fees.

Using our “advertising & eCommerce” business model:

Shop Bulldog: In Q4 of 2019, we expect to rebrand our existing Evine Too channel into a new omnichannel, television shopping brand called Shop Bulldog (“SB”) that will sell and advertise men’s merchandise and services, and the aspirational lifestyles associated with its brands and personalities.

Although SB will be produced in Minnesota at the corporate headquarters like our ShopHQ channel, SB will not be associated with ShopHQ from a branding and creative perspective. Our unfair advantage in executing this strategy is our existing strength in watches and male customers in television retailing.

LaVenta: In Q1 of 2020, we expect to launch a new omnichannel, Spanish language, television shopping brand centered on the Latin culture to sell and advertise merchandise, services and personalities, celebrating aspirational lifestyles.
LaVenta will be produced in Miami by a standalone Latin management team. We also have a compelling unfair advantage to build this new offering – the top three shopping categories in the Latin culture are beauty, watches and jewelry – our core strengths.