iMedia Brands Q2 Sales Miss Estimates; Lifts FY21 Sales Outlook

iMedia Brands Inc IMBI reported a second-quarter FY21 sales decline of 8.9% year on year, to $113.4 million, missing the analyst consensus of $120.82 million.
Q2 12-month rolling active customers grew by 9% Y/Y, driven by 40% growth in new customers.
The company attributed the revenue decline to material delays in seasonal inventory receipts of its direct-import products resulting from the industry-wide container shortages and congestion delays at U.S. ports.
The gross margin expanded 510 basis points Y/Y to 42.3%.
ShopHQ digital net sales percentage dropped 290 basis points Y/Y to 47.2%.
It recorded an operating loss of $(2.4) million for the quarter against an operating income of $2.5 million in Q2 FY20.
The company held $23 million in cash and equivalents as of July 31, 2021.
Adjusted EBITDA of $8.3 million decreased 23% Y/Y.
Loss per share was $(0.22) versus EPS of $0.11 last year.
Outlook: iMedia sees Q3 FY21 sales of $127 million with the consensus of $119.63 million.
The company expects FY21 sales of about $502 million (prior $490 million) versus the consensus of $497.63 million.
Price Action: IMBI shares closed higher by 2.48% at $6.61 on Monday.