Evine posts slight web sales growth as total sales fall 1% in Q1
May 26, 2015 05:30 PM
Evine Live Inc., the Minneapolis-based TV and web retailer formerly known as ShopHQ (and previously ShopNBC) reported less than 1% e-commerce growth for the first quarter of 2015 as total sales slipped nearly 1%.
For the quarter ended May 2, Evine, No. 118 in the Internet Retailer 2015 Top 500 Guide reported:
- Web sales accounted for 45.2% of total sales compared with 44.7% in 2014. Based on those metrics, Internet Retailer estimates that web sales grew year over year 0.3% to $71.64 million from $71.39 million in Q1.
- Total sales decreased 0.8% to $158.5 million from $159.7 million in 2014.
- Net loss was $4.7 million compared with net income of $500,000 in the prior-year quarter.
- The average ticket decreased 14.5% in 2014 to $65 compared with $76 in 2013.
- The return rate was 20.3% compared with 22.2% last year.
- The company shipped about 2.2 million orders, up from about 1.9 million in Q1 2014.
"While we hoped to deliver top-line growth of at least 3%, several factors including a lower than ideal average selling price in watches, discounting excess textiles inventory on-air and lower shipping revenues worked against us,” CEO Mark Bozek says. “On the other hand, we've launched over a dozen proprietary brands since the beginning of the year, and our new brands are being well-received and are driving higher sales per minute than our legacy product.”
The TV shopping network and online retailer that has operated as ShopHQ since 2013 rebranded itself as Evine Live in March 2015. Parent company ValueVision Media Inc. has also taken the name Evine Live Inc. From 2001 to 2013, the company did business as ShopNBC.
Bozek warned that the majority of 2015 could be bumpy. “While new initiatives take time, the progress we are making is clearly reflected in several encouraging first-quarter records—including total customers, average purchase frequency and units shipped,” Bozek says. “While the balance of 2015 will continue to be a transition period, the heavy lifting has been done and the benefit of changes we have made should be visible in our bottom line by year end.”