Posts Tagged ‘third-quarter earnings’

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.

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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 HSN.com,” Grossman said, according to a transcript from Seeking Alpha.

http://seekingalpha.com/article/4020616-hsn-hsni-q3-2016-results-earnings-call-transcript?part=single

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.

QVC’s Third-Quarter Sales Drop 6 Percent

November 8, 2016

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.

The news about QVC, the dominant domestic shopping channel, was not surprising in at least one respect: Company honcho Mike George had warned in the second quarter that there revenue had slowed down and might take a tumble in the coming period.

HSN also had a rough go. Net sales for the third quarter were $569.7 million, a decrease of 3.5 percent from the prior year.

“The U.S. experienced declines in the electronics, beauty, jewelry and accessories categories, which were partially offset by gains in home and apparel,” QVC’s parent, Liberty Interactive Corp., said in a press release on Tuesday.

“eCommerce revenue increased 1 percent to $684 million and grew 342 basis points to 51 percent of total U.S. revenue,” the release said. “Operating income decreased 18 percent to $175 million, operating income margin declined 199 basis points, adjusted OIBDA decreased 8 percent to $308 million and adjusted OIBDA margin declined 43 basis points.”

Consolidated revenue for the QVC Group, which includes its domestic and international networks, was down 3 percent to $1.9 billion.

“We are benefiting from our diversified global model,” QVC President and CEO George said in a canned statement.

“While we are facing sales pressures in our U.S. business, we delivered local currency sales gains in every non-U.S. market in the quarter. We are responding to the immediate domestic challenges through a series of strategies to drive more balanced growth across our categories, consistently deliver exceptional customer experiences, offer outstanding values, accelerate new customer acquisition, and lower operating costs.”

He added, “And last week we were thrilled to launch Beauty iQ, the first multi-platform shopping network dedicated exclusively to beauty. These actions demonstrate our confidence in the long-term health of our unique retail model.”
QVC has now centralized many of its corporate functions in Poland, creating the network calls its “ONE Q organizational structure.

The goal is to “better leverage its global scale and capabilities, to enhance its competitive position and to create operational efficiencies,” the press release said.

Then it went on with this gobble-gook to explain the financial impact of this change. Maybe you can make heads or tails of it, cause we sure can’t.

Beginning in the first quarter of 2016, QVC began allocating certain corporate costs for management reporting purposes differently. Historically, QVC allocated these costs to the market from which the services were provided.

Now, as more of QVC’s costs support initiatives in multiple markets, QVC is allocating costs to the markets that will benefit from the expenditures. These management cost allocations are related to certain functions, such as merchandising, commerce platforms, information technology, human resources, legal, finance, brand and communications, corporate development and administration.

The cost allocations (from QVC U.S. to QVC International) totaled approximately $8 million in the third quarter and are expected to approximate $32 million in 2016.

As a result of the allocations, the US segment’s operating income and adjusted OIBDA margins were each positively impacted 60 basis points and the international segment’s operating income and adjusted OIBDA margins were negatively impacted 131 basis points in the third quarter.

There was no impact to consolidated operating income and adjusted OIBDA margins. With the completion of the ONE Q implementation, QVC’s financial disclosure is consistent with the way it evaluates its business performance and manages its operations.

Regarding domestic QVC, “The third quarter included the aforementioned cost allocations from ONE Q, which were mostly offset by approximately $7 million of severance expense. The results primarily reflect lower product margins and higher warehouse costs, which were partially offset by favorable inventory obsolescence and lower bonus and benefit expenses of approximately $10 and $8 million, respectively, and higher credit card income.”

Also for QVC domestic, the average selling price per unit (“ASP”) decreased 7 percent to $54.75, units sold decreased 1 percent, and returns as a percentage of gross product revenue improved 170 basis points.

HSN Sales Drop 3.5 Percent In Third Quarter

November 7, 2016

HSN had another tough quarter this year.

Net sales for the third quarter were $569.7 million, a decrease of 3.5 percent from the prior year. That’s the second quarter in a row that revenue has dipped.

Digital sales grew 6.7 percent, with penetration increasing 430 basis points to 44.8 percent. Revenue for apparel and accessories and wellness rose, offset by decreases in other product categories and in shipping revenues, the network reported on Monday.

A decrease in shipping revenue was primarily due to increased promotions and changes in the standard shipping rates, which became effective in August.

The average price point decreased 5 percent, largely due to an increase in clearance activity and changes in product mix. Units shipped increased 1 percent.

Gross profit for the network decreased 7 percent to $190 million.

The gross profit rate decreased 130 basis points to 33.3 percent, primarily due to a decrease in shipping revenue and, to a lesser extent, increased clearance activity.

Operating expenses decreased 4 percent to $143 million, largely due to decreases in employee-related costs, primarily incentive compensation, and bad debt expense. Operating expenses (excluding non-cash charges) decreased 4 percent to $131.9 million.

HSN’s parent is HSN Inc., which also includes the Cornerstone unit. That unit divested two businesses in the third quarter, TravelSmith and Chasing Fireflies.

HSN INc.’s sales, HSN and Cornerstone, saw their overall sales dip 5 percent to $823 million, or 3 percent excluding the impact of the divested businesses

“Similar to last quarter, our third-quarter results reflect weaker performance in specific HSN merchandising categories; softness in the outdoor segment within the Cornerstone portfolio; and a difficult consumer environment,” HSN CEO Mindy Grossman said in a canned statement.

“This was compounded by disruptive and distracting high-profile media events, particularly in August and September, that influenced our customers’ buying patterns and television viewership behaviors.”

“We have strategic actions under way to improve HSNi’s performance and have made progress in certain areas,” Grossman said. “These include expanding our proprietary merchandising pipeline and unique destination programming; elevating our content, digital and data capabilities; extending our distributed commerce platforms including experiential retail; and the divestiture of businesses for a focused portfolio.

“While our near-term outlook remains cautious, and it will take time to fully realize the benefits of our initiatives, I am confident in our ability to execute on our plans while proactively managing our overall expenses to drive HSNi’s long-term performance and value creation for our shareholders.”

HSN To Post Third-Quarter Results Nov. 7

October 17, 2016

HSN Inc., parent of the No. 2 home shopping network, will release its third-quarter earnings Nov. 7.

CEO Mindy Grossman and Judy Schmeling, chief operating officer and chief financial officer and president of Cornerstone Brands, will hold a conference call at 9 a.m. to review the 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 Monday, November 21, 2016 by dialing 855-859-2056 or 404-537-3406, plus the passcode 94629115 and will also be hosted on the company’s website for a limited time.

QVC’s Parent To Release Third-Quarter Results Nov. 8

October 8, 2016

QVC’s parent company, Liberty Interactive Corp., will report third-quarter earnings Nov. 8, John Malone’s empire announced Friday.

Liberty President and CEO Greg Maffei will host a conference call to discuss results at noon that day.

Following prepared remarks, the company will host a brief Q&A session during which management will accept questions regarding both Liberty Interactive and Liberty TripAdvisor Holdings. This is when QVC honcho Mike George usually chimes in.

During the call, Maffei may discuss the financial performance and outlook of both companies, as well as other forward looking matters including the proposed split-off of Liberty Expedia Holdings Inc.

To those interested, call ReadyTalk at (844) 307-2219 or (678) 509-7635 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 conference call will be broadcast live online.

All interested participants should visit the Liberty Interactive 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 Liberty Interactive Corporation website.

The conference call and related materials will be archived on the website for one year after appropriate filings have been made with the Securities and Exchange Commission.

Evine Live To Post Third-Quarter Results Nov. 24

November 10, 2015

Wow, here’s a lid-lifter for you.

Evine Live will release its fiscal 2015 third-quarter results Nov. 24 before the market opens at 6 a.m. Must be some early birds at the home shopping network.

CEO Mark Bozek and Chief Financial Officer Tim Peterman will hold a conference call at 8:30 a.m. to review these results.

Those interested in participating in the conference call should dial 1-866-857-4886 at least five minutes prior to the call. The passcode is: 70557209.

There will be a simultaneous audio webcast available at the following link: http://edge.media-server.com/m/p/dehyedwf. A replay of the conference call will also be hosted on the company’s website for a limited time.

HSN To Post Third-Quarter Results Nov. 4

October 15, 2015

HSN will report its third-quarter earnings Nov. 45 at 8 a.m. before the market opens, the home shopping network said Wednesday.

CEO Mindy Grossman and Judy Schmeling, chief operating officer and chief financial officer, will hold a conference call at 9 a.m. to review the results.

There will 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 Nov. 18 by dialing 855-859-2056 or 404-537-3406, plus the pass code 57891125 and will also be hosted on the company’s website for a limited time.

HSN Post 7 Percent Sales Increase In Third Quarter

November 5, 2014

HSN saw a pretty good third quarter, with its net sales rising 7 percent to $578.3 million, the home shopping network reported Tuesday.

HSN attributed its performance to strong sales growth in apparel & accessories, home design, health and electronics, partially offset by a decline in jewelry. Yikes, our favorite category!

Digital sales grew 13 percent, with penetration increasing 200 basis points to 38.8 percent. The return rate decreased 120 basis points to 17.6 percent, primarily due to changes in product mix.

Units shipped increased 3 percent and average price point increased 4 percent.

Gross profit increased 9 percent to $202.7 million. Gross margin increased 50 basis points to 35.1 percent primarily due to lower clearance sales and higher product margins, partially offset by an increase in net shipping expense.

Operating expense leverage (excluding non-cash charges) improved 50 basis points to 23.5 percent.

Adjusted EBITDA increased 17 percent to $66.7 million. Operating income increased 18 percent to $56.2 million.

HSN Inc., which includes HSN and Cornerstone, had a 5 percent increase in net sales, to $837.5 million.

“HSNi’s strong performance in the quarter was a direct result of the successful execution of our strategic initiatives,” CEO Mindy Grossman said in a canned statement.

“HSN’s unrelenting focus on customer acquisition and assimilation, digital optimization, and the strength of our product portfolio drove overall sales growth of 7 percent and digital sales growth of 13 percent,” she said.

“We also had sequential financial improvement at Cornerstone,” Grossman said.

QVC’s Parent To Report Third-Quarter Results Nov. 4

October 14, 2014

Liberty Interactive Corp., parent of QVC, will release its third-quarter earnings Nov. 4 at 5:15 p.m., the company said Monday.

Liberty President and CEO Greg Maffei, will host a conference call to discuss results.

Replays of the conference call can be accessed through 7:15 p.m. on Nov. 11 by dialing (888) 203-1112 or (719) 457-0820 plus the pass code 1670709.

In addition, the third-quarter earnings conference call will be broadcast live via the Internet.

All interested participants should visit the Liberty Interactive 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 Liberty website. The conference call and related materials will be archived on the website for one year.

Liberty operates and owns interests in a broad range of digital commerce businesses, which are part of two tracking stock groups: the QVC Group (formerly referred to as the Liberty Interactive Group) and the Liberty Ventures Group.

The businesses and assets attributed to the QVC Group (Nasdaq: QVCA, QVCB) consist of Liberty Interactive’s subsidiary, QVC Inc., and its interest in HSN Inc.

The businesses and assets attributed to the Liberty Ventures Group (Nasdaq: LVNTA, LVNTB) consist of all of Liberty Interactive’s businesses and assets other than those attributed to the QVC Group, including its stake in Expedia, its subsidiaries Provide Commerce Inc., Backcountry.com, Bodybuilding.com, Commerce Technologies Inc., LMC Right Start Inc. and Evite Inc., as well as minority interests in Time Warner, Time Warner Cable, Lending Tree and Interval Leisure Group.