ShopNBC Has Mixed Q2
Shopping Channel Revenue Dips 16%; Losses Nearly Halved
by Mike Farrell -- Multichannel News, 8/19/2009 11:38:08 AM
ValueVision Media, the parent of home-shopping channel ShopNBC, reported mixed second-quarter results Wednesday as revenue declined 16% in the period and losses were nearly cut in half.
ValueVision reported revenue of $119.3 million in the
period, down 16% from $141.9 million during the same period last year. But its
adjusted cash flow loss of $5.7 million was almost half the $10.7 loss of the
prior year. Net loss for the period was $8.2 million (26 cents per share), compared
to a loss of $15.7 million (47 cents per share) in the same period last year.
The company, which scrapped plans to sell itself in January, has made some management changes in the past several months. In June it named former QVC executive Randy Ronning as chairman.
and in May named industry veteran Carol Steinberg as senior vice president of e-commerce. Keith Stewart, also a QVC veteran, who joined the company as president and chief operating officer in 2008, added CEO to his responsibilities in January.
The company also added 106 new vendors to its home, fashion, beauty and jewelry lineup in the period and made efforts to drive increased customer activity buy initiating efforts to lower the average selling price of products. That led to a 40% increase in net unit sales in the second quarter, driven by the lower price points as the average selling price dropped to $112 in the quarter vs. $194 in the year-ago period.
"The second quarter was another solid foundation building period for the company in its turnaround," Stewart said in a statement. "We have the right leadership team in place. We are buying the right merchandise and building up our reorder business. With improved inventory levels, higher margins and lower price points, positive business metrics continued to take form. The customer is responding to our new merchandise strategy and to our new expert guests, all of which can be seen in the positive trends in new and active customer counts."
ValueVision shares rose 16 cents each (0.5%) to $3.14 per share in early trading Wednesday.Ronning Named ShopNBC Chair
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