Posts Tagged ‘third-quarter earnings’

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.

Brutal Third Quarter for Evine

November 29, 2018

As far as we’re concerned it was a tough third quarter for Evine, which reported its results Wednesday.

Net sales dropped 12 percent year-over-year, to $131.7 million. There was a net loss of $9.2 million versus a net loss of $1.1 million the prior year.

The good news, according to the home shopping network, was that: It introduced 40 new brands and brand extensions during the third quarter, compared to 21 in the prior year; it successfully opened a Los Angeles office and launched a L.A. studio with the first broadcast Oct. 18; signed its first client to a new third-party logistics services business; and secured 2 million new HD channels that will launch in the fourth quarter.

We assume that actually means the HD channel will launch to 2 million more homes, not 2 million HD channels will launch.

It was hard for CEO Bob Rosenblatt to put a rosy spin on it all.

“We had a very difficult quarter, which was disappointing given that we entered the third quarter with strong trends across multiple business drivers, and after delivering several consecutive quarters of solid performance,” he said in a statement.

“Our top-line sales were not where they needed to be or where we expected them to be due to the delayed launch of a new proven brand partner. The shift in the timing of the launch put undue pressure on our existing brands and impacted productivity across all of our product categories. The premiere of this well-established brand is now anticipated to occur in January 2019, and we expect that its proven track record of success and its large and loyal customer following, along with other exciting new launches, will put us back on track for sustainable growth.”

Anyone know what he’s talking about?

“Our goal and strategy remain the same: to drive sustainable growth through the curation and nurturing of a strong collection of brands. This strategy delivered growth in adjusted EBITDA in eight of the past 10 quarters,” Rosenblatt said. “Our expertise is in building great brands and providing a dynamic platform for our core brands. I am encouraged by the quantity and quality of the new brand launches during the quarter and look forward to nurturing and growing these brands over time.

“Additionally, our new L.A. studio and office is providing a previously untapped pipeline of brands and new partners that align with our business strategy and model. Our new studio and entrance into direct-to-consumer third-party logistics services were wins for us in the third quarter as we continue to move our company forward towards our goal of being a leading interactive video and digital commerce company.”

Here are some 3Q highlights:

  • The top-performing category in the quarter was beauty & wellness, which declined 4 percent year-over-year. Subscription sales increased 13 percent and continue to help this category be one of the top performers.
  • Digital net sales as a percentage of total net sales increased 40 basis points to 51.9 percent, reflecting our continued focus on making the customer experience seamless across all platforms.
  • The return rate for the quarter was 19.9 percent; an increase of 80 basis points year-over-year driven by increased ASP and increased mix into our jewelry & watches category.

QVC, HSN Parent To Announce 3Q Results Nov. 9

October 28, 2018

Qurate Retail Inc., the parent of QVC and HSN, will release its third-quarter earnings Nov. 9.

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

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

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) 239-9838 or (323) 794-2551, passcode 8205223, 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 third quarter earnings conference call will be broadcast live via the Internet.

All interested participants should visit the Qurate Retail website at 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 SEC.

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.

HSN Sales Dip 6% In Third Quarter

November 10, 2017

HSN reported its third-quarter earnings this week, and Hurricane Irma took a $13 million chunk out of the channel’s sales.

The No. 2 home shopping network registered a 6 percent decline in its sales, to $536.2 million, but part of that drop was blamed on the hurricane.

HSN closed down its Florida HQ and broadcast live from Nashville during the storm.

“In September, HSN implemented its business continuity plan as a result of the approach of Hurricane Irma,” the company said in its press release.

“HSN closed its headquarters, redeployed critical personnel and relocated its broadcast studios to temporary facilities outside of the storm’s track. These actions resulted in increased operating expenses and limited program effectiveness which we estimate impacted net sales and Adjusted EBITDA by $13 million and $5 million, respectively.”

Here are the other key grafs from the press release.

Digital sales decreased 3 percent while penetration increased 130 basis points to 46.1 percent. Sales decreased in electronics, apparel and accessories and beauty, offset by increases in fitness and home. Shipping revenues declined primarily due to the August 2016 changes in the standard shipping rates. Average price point decreased 6 percent largely due to changes in product mix. Units shipped decreased 2 percent.

Gross profit decreased 5 percent to $181.3 million. Gross profit rate increased 50 basis points to 33.8 percent primarily due to an increase in product margins, partially offset by higher outbound shipping rates and fulfillment costs.

Operating expenses increased 5 percent to $150.3 million driven by increases in employee-related costs and bad debt expense. HSN incurred approximately $1.6 million in expenses related to Hurricane Irma and approximately $0.9 million in allocated transaction costs related to the merger.

Operating income decreased $16 million, or 34 percent, to $31 million. Adjusted EBITDA decreased $15.4 million, or 27 percent, to $42.6 million. The impact of Hurricane Irma on Adjusted EBITDA is estimated to be $5 million. The supply chain optimization implementation resulted in an additional $1.3 million of costs in the third quarter of 2017 which impacted gross profit and operating expenses.

QVC Posts 3% Sales Increase In Third Quarter

November 10, 2017

Holy crow! QVC had a 3 percent revenue increase in the third quarter, to $1.4 billion, its parent company Liberty Interactive Corp. reported Thursday. This is after several quarters when sales were down.

The dominant domestic home shopping networks also posted a 14 percent rise in its operating income.

“QVC had an excellent quarter, growing constant currency revenue and adjusted OIBDA in every market,” Liberty President and CEO Greg Maffei said in a statement. “We made progress on the acquisition of HSN and expect to close in the fourth quarter.”

QVC saw year-over-year gains in the apparel, beauty, accessories and electronics categories in the third quarter.

But the home category was essentially flat and jewelry declined, according to Liberty.

The average selling price declined 4 percent in the quarter, “primarily driven by product mix within the electronics category, as several successful items sold in the quarter carry lower price points than items sold in the prior year,” Liberty said in its press release.

“We are very pleased with our strong results,” QVC President and CEO Mike George said in a statement.

“Our U.S. business returned to growth and our international segment continued its solid momentum,” he said. “Our performance demonstrates our ability to execute our strategic initiatives to improve product freshness and discovery, leverage our commerce content across platforms, increase customer engagement and attract new customers. We remain excited about the pending transaction to acquire HSNi and the formation of the new QVC Group.”

In the quarter QVC’s number of new customers increased 7 percent.

“As noted last quarter, the U.S. business experienced a systems outage late in the second quarter of 2017, which resulted in an estimated 1 percent shift in net revenue to the third quarter,” Liberty said.

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:

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

No Call For HSN Third-Quarter Results

October 20, 2017

HSN will release its third-quarter earnings Nov. 8, the network said this week.

“Due to the pending acquisition of HSNi by Liberty Interactive Corp.QVC Group, HSNi will not hold a conference call to review these results,” the press release said.

Public companies typically hold conference calls with Wall Street analysts when they announce their quarterly earnings. This is the first time we recall a company not doing one.

Evine Sales Drop 7 Percent In 3Q, To $152 Million

November 22, 2016

The hits keep coming to home shopping networks in the third quarter, and we don’t mean that in a good way.

Evine, the No. 3 channel, released its earnings on Tuesday, and its announcement “buried the lead,” as we say in journalism, about the sales drop. Net sales declined 7 percent, to $152 million.

The good news is that Evine stopped some of the flow of red ink during the quarter,

Its net loss was $3.9 million, a 25 percent improvement year-over-year, with adjusted EBITDA of a positive $2.5 million, a 1,400 percent improvement year-over-year. Gross profit as a percentage of sales increased 210 basis points to 36.6 percent compared to 34.5 percent in the third quarter of last year.

All the major home shopping networks took a beating in the third quarter, with QVC seeing its revenue dive 6 percent, to $1.3 billion, just a day after HSN reported that its sales had slid 3.5 percent, to $569.7 million.

The only one to have an upbeat report was Jewelry Television, which said that its third-quarter sales rose 10.6 percent.

“I’m pleased with our progress as we continue to improve profitability through a disciplined merchandising mix that prioritizes contribution margin,” Evine CEO Bob Rosenblatt said in a canned statement.

“For consecutive quarters, we have been expanding our gross margin rate, improving our cash position, lowering our net loss and improving our EPS by refining our mix of compelling merchandise, focusing on our most successful product categories, and engaging our valued customers via a personal shopping experience.”

Bob had quite a bit to say, actually.

“I am also proud of the progress we made this quarter toward our 2017 revenue growth strategy that centers on gathering a world-class team to help us cultivate our products, attract the right new customers based on their digital lifetime value, and create a culture that can drive sustainable revenue growth,” he went on.

“This progress includes filling out our executive management team with the recent hire of Lori Riley, SVP, Chief Human Resources Officer; launching new high quality beauty brands, like Sirot and CoverFx; launching new fixed programming blocks like Paula Deen on location in Savannah, Georgia, and attracting leading industry advisors to help us bring new brands, products and personalities to our business, as we have done with Tommy Hilfiger and Tommy Mottola.”

Wearable categories, which include Jewelry & Watches, Fashion & Accessories, and Beauty, posted strong revenue performance, and together rose 3 percent. The growth in wearables was offset by a 66 percent decline in the consumer electronics category.

Return rate for the quarter was 20.5 percent; an increase of 160 basis points year-over-year, driven by product mix shifts.

These results were primarily attributable to a 4 percent operating expense reduction of $2.7 million year-over-year, driven primarily by lower content distribution costs and decreased accrued incentive compensation, which were partially offset by higher expenses in marketing, and higher variable expenses resulting from increased credit costs and increased labor costs in customer solutions and fulfillment center.

EPS for the fiscal 2016 third quarter improved to ($0.06), which includes $600,000 in executive and management transition costs and $200,000 in distribution facility consolidation and technology upgrade costs. EPS for the fiscal 2015 third quarter was ($0.09), which included $800,000 in executive and management transition costs, $100,000 in costs associated with the implementation of the Shareholder Rights Plan, and $300,000 in distribution facility consolidation and technology upgrade costs.

The outlook for the rest of the year isn’t rosy. Evine said that it expects revenue in the fourth quarter to be negative low to mid-single digits on a year-over-year basis.

HSN’s Grossman Dishes A Bit On 3Q Call

November 11, 2016

We’ve been busy and just getting around to offering some tidbits from HSN honcho Mindy Grossman from her third-quarter call with analysts this week.

It was a tough one for the No. 2 home shopping network, which saw sales dip 3.5 percent $569.7 million.

Shoes and apparel from designer brands and personalities, namely Vince Camuto and Wendy Williams, proved to be bright spots for HSN, accordihg to Grossman.

“As part of our strategy to drive commerce on non-traditional platforms, we intensified our partnership with Wendy to include daily promotions on her highly followed, number one syndicated talk show as well as social activations leading up to our appearance on HSN and the launch of her Shoe Closet in a primetime special on The List and on,” Grossman said, according to a transcript from Seeking Alpha.

HSN has in fact really promoting Williams. We saw the network even ran an ad for her in the New York Post, of all places.

“Additionally, we’ve teamed up with award-winning entrepreneur and the creator of Dreamers Ventures, Liliana Gil Valletta, to launch Project American Dreams, a nationwide search to discover, mentor and fast-track product innovations created by Latino entrepreneurs on HSN in partnership with the National Hispanic Chamber of Commerce,” Grossman said.

“We’re also featured on CBS’s hit series, ‘Hatched,’ with a dedicated HSN presence as we identify new entrepreneurs with innovative products that we can exclusively bring to market,” she told Wall Street.

The other thing that caught our eye was this kernel about our favorite category, jewelry.

“As we reposition our jewelry portfolio, we recently launched an exclusive collection from Jay Strongwater, a luxury brand with a strong design aesthetic and following. We will be expanding the brand into home décor and collectibles,” Grossman said.