Online commerce firm Evine Live posted improved fourth-quarter and full year results.
The company said for the three months ended Jan. 31 net income was $3.3 million, or 6 cents a diluted share, against a net loss of $1.5 million, or 3 cents, a year ago. On an adjusted basis, net income was $3.7 million. Net sales rose 4.1 percent to $201.2 million from $193.3 million.
The company said online net sales rose 4 percent to $93 million, representing 46.1 percent of total sales. Mobile represented its fastest-growing platform, with sales up 24 percent to $32 million. Other data metrics include a 23 percent gain in net shipped units to 2.9 million, with the return rate declining 160 basis points to 19.9 percent. The average purchase frequency rose 17 percent to 4.3 units per customer.
For the year, the net loss narrowed to $1.4 million, or 3 cents a diluted share, from a net loss of $2.5 million, or 5 cents, in 2013. Net sales rose 5.3 percent to $674.6 million from $640.5 million.
Mark Bozek, who joined the company as chief executive officer in June 2014 when it was still ShopHQ before the re-branding to Evine Live, told Wall Street analysts in a conference call: “As a digital commerce retailer, the key to leveraging all of our platforms is engagement with our customers wherever they are and we are benefiting from that broad reach of our multiple digital platforms.”
Bozek said efforts to broaden the product assortment “are being well received by our customers,” and he noted “over 5,000 new customers” shopped with Evine last weekend.
New proprietary brands in fashion and apparel on Evine since Bozek took over include Lisa Vanderpump Jewelry Estate collection and Peace and Love Jewelry by Nancy Davis. The new lines also complement the rollouts of new offerings from its skin-care brands.
In a telephone interview, Bozek said, “Two quarters into this process of transforming the company from being a distant third place TV shopping company into something more relevant is beginning to take shape.”
Bozek has a theory that the sector of retail Evine is in — TV, mobile and online — will grow at a faster rate than brick-and-mortar doors. He explained in the interview that not having stores is a big benefit, and while there are costs related to the distribution to cable companies for the 88 million homes Evine is in, the company doesn’t have to deal with supply chain issues such as shipping boxes from one store to another. “We can be more nimble and focus on creating an exciting retail theater,” Bozek said.
Not having enough proprietary brands is also a factor contributing to some retailers’ stores not doing as well as others, Bozek said, who explained that offering merchandise at the lowest price possible doesn’t generate loyalty among customers.
“We’ve found that our customers are very loyal and they love the notion of ‘Where did you get that?’ Where did you get that matters in my eyes, and it should matter to a lot of people in the retail world,” he said.
To that end, Bozek said the company plans to add more proprietary brands to its lineup, including new lines to its apparel offerings. Its exclusive brands are about 25 percent of the total merchandise mix, and it plans to increase that to the 85 percent range, which is comparable to competitors such as QVC and HSN.
Shares of Evine on Wednesday were up 12.9 percent to $6.56 in Nasdaq trading.