Digital commerce firm Evine Live Inc. post mixed earnings results for the fourth quarter and full year.
For the three months ended Jan. 30, net income was $667,000, or 1 cent a diluted share, compared with $3.3 million, or 6 cents, a year ago. Net sales rose 5.1 percent to $211.5 million from $201.2 million. The company said mobile continues to be the fastest-growing platform with net sales of $46.8 million, a 47 percent increase year-over-year.
For the full year, the net loss was $12.3 million, or 22 cents a diluted share, compared with a net loss of $1.4 million, or 3 cents, for 2014. Net sales increased 2.8 percent to $693.3 million from $674.6 million.
Bob Rosenblatt, chairman and interim chief executive officer, said, “Although the company had solid revenue growth in the fourth quarter, we are disappointed with the overall bottom-line results.” He said the company is in the middle of implementing plans to address certain issues, such as the profit erosion that continued into the fourth quarter. The company last week cut full-year operating expenses by $5 million through a reduction in corporate overhead and other operating costs.
Rosenblatt added, “Evine Live has a proven business model and we are strongly positioned to continue to use our expertise as a leader in the digital video commerce space. Our historical focus on developing proprietary and exclusive brands to broaden our product offering is proving to be a good idea.”
Evine earlier this month closed on a $17 million bank term loan with Great American Capital Partners Finance Co. The company said it will use the borrowings for general corporate purposes, as well as to strengthen the overall liquidity position of the company.
Rosenblatt became interim ceo on Feb. 8. The company’s former chief executive officer, Mark C. Bozek, resigned a day earlier. A regulatory filing with the Securities and Exchange Commission, a Form 8-K, said there was “no material disagreement” between Mr. Bozek and the company…on any matter relating to the company’s operations, policies or practices or otherwise.”
Bozek had been in contact with The Clinton Group back in 2013 when the activist investor launched a campaign to force change at the company then known as ValueVision Media Inc., which operated the TV and Internet shopping site ShopHQ. The company and Clinton were locked in a bitter battle for board change since November 2013.
Clinton won the fight and Bozek was installed as ceo in June 2014. In November 2014, ValueVision acquired certain assets connected with evine.com, an e-commerce platform company started in May 2012 by Bozek and Russell Nuce, and changed the name of the firm to Evine Live. Nuce, who joined Evine as executive vice president, chief strategy officer, interim general counsel and corporate secretary in November, also resigned from the company on Feb. 7.
Under Bozek’s tenure, the company has been making a bigger push on celebrity brands proprietary to Evine. Those include Lisa Vanderpump’s jewelry line and fashion apparel lines from Nancy O’Dell, Karen Fairchild and Vanessa Williams.
Shares of Evine have been trading in the range of 80 cents, far better than its intraday low of 41 cent on Feb. 23. The stock has been trading under a $1.00 a share since Feb. 5, and the company on March 21 said it received a notice of delisting letter from the Nasdaq Global Market on listing requirements. The company has until 180 calendar days, or Sept. 19, to regain compliance with the listing requirements.