Keith Stewart
“The turnaround of ShopNBC has gained traction,” ShopNBC CEO Keith Stewart said during a third-quarter conference call.
“Changes to the business merchandising efforts are starting to unlock our customers growth potential,” he added. “And once you have traction, it’s full speed ahead…Q4 is the right quarter to continue accelerating forward.”
Third-quarter revenue was $119.4 million versus $124.8 million, a 4 percent drop versus the same period last year, as ShopNBC intentionally lowered its average selling price by 49 percent and increased unit volume by 90 percent. Net average selling price was lowered to a record $95 during the quarter versus $187 in the year-ago quarter.
“This reduction in our average selling price is an essential part of our strategy to increase viewership, rebuild out customer base and increase unit volume,” ShopNBC chief financial officer Frank Elsenbast said.
He noted that ShopNBC had changed its product mix to more health, beauty and home items and less high-ticket consumer electronics products.
Adjusted EBITDA was a loss of $5.6 million compared to a loss of $13.3 million in the year-ago period. The net loss for the third quarter was $12.9 million compared to a $20.8 million for the same quarter last year.
Net sales in the first nine months were $372.6 million, a drop from $423 million in the prior-year period. The net loss for the first nine months was $33.2 million, down from $54 million a year ago.
In the third quarter ShopNBC got 1.1 new customers each minute every day, and saw 4 percent growth in net orders, the first increase in seven quarters, according to Stewart.
Judy Crowell
The network added 122 vendors, included big names like actress Suzanne Somers and celebrity plastic surgeon Dr. Robert Rey, who has a show on E! Entertainment Television.
SHopNBC is now “the definitive destination for watches,” with sales up 66 percent in the third quarter, according to Stewart.
Beauty “was another out-performer in the quarter, and it’s firing on all cylinders,” Stewart said.
Beauty sales were up 77 percent over last year, with 29 new brands launched, including Rey’s skincare line.
On the fashion side, ShopNBC debuted 50 new brands and concepts in the third quarter with sales up 6 percent, according to Stewart. It will launch 17 fashion lines before the end of the year, including the Judy Crowell Collection, from the former QVC and HSN host.
Stewart was upbeat about the home shopping business in general and ShopNBC in particular.
“This industry itself will continue to grow over brick-and-mortar,” he said. “The power of the Internet and television is pretty tough to beat.”
As for ShopNBC, the CEO said, “We also have stated previously we will double our sales every five years.”
The network needs 15 percent compound growth quarterly to achieve that target, according to Stewart.
Tags: CEO, conference call, Dr. Robert Rey, Frank Elsenbast, HSN, Judy Crowell, Keith Stewart, QVC, ShopNBC, Suzanne Somers, The Judy Crowell Collection, third-quarter earnings
Homeshoppingista's Blog By Linda Moss 
January 7, 2010 at 10:18 pm |
Why does it always have to be about the almighty dollar.
So your not selling enough lamps or coats or whatever, does letting go hosts help you out, does it get back all your millions?
Why don’t you hire buyers who know what the consumers need and want?
It’s getting so ridiculous now, we can just go to mom & pop shops around our towns, the prices are not that different and cheaper without your s/h.
Right now I would have to say most of these shopping channels are for those who cannot get out anymore,
What is being offered in not so unique anymore and with money woes for most, these items are not high on the list.
It always happens you get a new CEO in and Bam, you start tossing people out the door.
Keith , I hope your new plan blows up in your face and sooner than later.
Whatever it is you tried to do by taking this host from one shopping channel, or vendors from others, I don’t think will work.
If someone didn’t need a thigh master from one shopping channel, or a certain scarf or purse from another, I don’t think your sales are going to give back your millions you say you lost.
I was one who always stuck up for your site, as of today, with the removal of Mike and Charla, I wish you nothing but bad karma, I hope you go down with the ship too….
January 22, 2010 at 10:31 pm |
I cannot believe Charla will no longer be part of SHOPNBC…she was one of the few fresh breaths of air in the entire place – real…instead of some of the plastic, face-lifted, boob-enhanced people now present.
My real complaint, however, is I have tried 5 or 6 times to set up an
on-line payment schedule and it never goes through. Today I called
customer “service” (that was a joke) and an Indian lady answered. Her accent was so heavy I asked to speak to someone else and she transferred me (and this was the real insult) to a recording pretending to
be an agent who acted as though “he” could not hear me, made a comment of client being ‘non-responsive’ and hung up…all after my investing 20 minutes of my time to give shopnbc money.
(By the way, no matter how good they are, digital recordings are unmistakeable…duh).
No service was present today…and yet, when I mail my payments in, I get charged a late fee because the payment does not arrive in time…right.
I have (likely) purchased my last item from shopnbc and I spent a lot
with you – no Charla, no Sharon Stromley.