Evine Live faced a challenging third quarter, in which net sales decreased and its net loss widened.
Net sales in the third quarter ended November 3 were $131.7 million, decreasing 12.3% year-over-year from $150.2 million in the previous third quarter. The company reported a net loss of $9.2 million, compared to a net loss of $1.1 million in the prior year. Earnings per share was a negative $0.14 compared to a negative $0.02 in the prior year.
The retailer introduced 40 new brands and brand extensions during the third quarter, compared to 21 in the prior year. The top performing category in the quarter was beauty and wellness, which declined 4% year-over-year.
Bob Rosenblatt, CEO, Evine, said, “We had a very difficult quarter, which was disappointing given that we entered the third quarter with strong trends across multiple business drivers, and after delivering several consecutive quarters of solid performance. Our topline sales were not where they needed to be or where we expected them to be due to the delayed launch of a new proven brand partner. The shift in the timing of the launch put undue pressure on our existing brands and impacted productivity across all of our product categories. The premiere of this well-established brand is now anticipated to occur in January 2019, and we expect that its proven track record of success and its large and loyal customer following, along with other exciting new launches, will put us back on track for sustainable growth.”
He added, “Our goal and strategy remain the same: to drive sustainable growth through the curation and nurturing of a strong collection of brands. This strategy delivered growth in adjusted EBITDA in 8 of the past 10 quarters. Our expertise is in building great brands and providing a dynamic platform for our core brands. I am encouraged by the quantity and quality of the new brand launches during the quarter and look forward to nurturing and growing these brands over time. Additionally, our new LA studio and office is providing a previously untapped pipeline of brands and new partners that align with our business strategy and model. Our new studio and entrance into direct-to-consumer third party logistics services were wins for us in the third quarter as we continue to move our company forward towards our goal of being a leading interactive video and digital commerce company.”