The company known as ValueVision Media Inc., which operates the digital shopping platform ShopHQ, has changed its name to Evine Live after acquiring certain assets connected with evine.com.
This story first appeared in the November 19, 2014 issue of WWD. Subscribe Today.
The company made the disclosure on the same day it posted third-quarter results that, on an adjusted basis, beat Wall Street’s earnings-per-share estimate.
For the three months ended Nov. 1, the net loss was narrowed to $808,000, or 1 cent a diluted share, from a loss of $1.2 million, or 2 cents, a year ago. Net sales rose 6.6 percent to $157.1 million from $147.3 million. On an adjusted basis, net income was $1.6 million, or 3 cents a share, against a loss of $900,000, or 2 cents, a year ago. Wall Street was expecting an adjusted loss of 3 cents a share on sales of $158.1 million.
Categories that did well in the quarter were fashion and accessories, as well as beauty.
Mark Bozek, chief executive officer of Evine, told analysts during the company’s conference call, “To build on this momentum, we strongly believe definitive change and innovation are necessary to take our company to the next level. What became clear since I joined the company in June is that neither the dedicated team I work with here or the investment community, including existing and potential investors, are interested enough in merely broadening our product mix. Simply broadening our product assortment will not unlock our company’s real value.”
He said the rebranding of the company is planned for the first half of 2015, which will include flowing in on a regular basis proprietary brands.
The company’s chief financial officer, William J. McGrath, said it acquired certain assets of Dollars Per Minute, including the Evine brand, through the issuance of 179,000 unregistered shares of its common stock, having an aggregate value of $1.4 million.
Evine.com was started by Bozek and Russell Nuce in May 2012 as a shopping platform selling merchandise exclusive to the site. As a result of the acquisition, Nuce has joined the company as chief strategic officer.
Bozek said Evine has spent the past few years since launch “incubating” the seven to eight brands that are in development. Bozek explained that the combination of the two companies fits the new digital commerce model for the transformation of the ShopHQ platform because consumers “want great value, [and] they want exclusivity.”
The new digital commerce platform Bozek envisions will focus more on social connections with its shoppers as the shopping model becomes more entertainment and interactive driven than before.