Happy St. Patrick’s Day: ShopNBC Sees 15.2 Percent Jump In Fourth Quarter

ShopNBC saw its net sales rise 15.2 percent in the fourth quarter, to $178.8 million, the home shopping network reported Thursday, with net sales for 2010 up 6.5 percent, to $562.3 million.

In the fourth quarter adjusted EBITDA for ShopNBC (i.e. ValueVision Media) increased to $8 million versus a loss of $1.3 million in the year-ago quarter. Adjusted EBITDA for the full year improved to a positive $2.4 million versus a loss of $19.4 million.

In the fourth quarter ShopNBC’s net shipped units increased 4.3 percent, while new customers rose 10.9 percent. Active customers saw a 12 percent increase on a 12-month rolling basis.

ShopNBC honcho Keith Stewart

Here’s the corporate line:

“Continued merchandising improvements and operating discipline yielded another quarter of double digit sales gains and gross margin improvement, with an over $9 million improvement in Adjusted EBITDA in Q4 2010 versus last year,” said Keith Stewart, CEO of ValueVision Media.

“Our full-year performance highlights progress in each of our key operating metrics, including new and active customers, Internet sales penetration, gross margin, net units shipped and a strategic reduction in average price point. These improvements yielded a 6.5 percent gain in net sales and improved Adjusted EBITDA by $21.8 million to a positive $2.4 million and highlight growing consumer acceptance of the value and convenience of our interactive shopping offerings.”

Continued Stewart, “Having markedly improved the business over the past two years under a new management team and committed employee base, we are now turning our full attention to driving top-line growth through a more diversified base of merchandise categories and broader product selection. While we believe in the growth potential of the business, we do expect some quarterly variability in our operating performance as we diversify our merchandise mix and test and launch new products, as well as from seasonal factors.”

ShopNBC president Bob Ayd also piped up.

“Areas of opportunity for 2011 include our Jewelry & Watches and Health & Beauty businesses where new product assortments have been achieving strong customer response while generating attractive margins. Home & Electronics should play an important role in revenue and new customer growth as we expand merchandise offerings in both hard and soft home categories. Fashion & Accessories remains a small but attractive business that we expect will scale over time. Importantly, our growth objectives are now being supported by a stronger working capital position that resulted from the equity and debt financings completed in Q4. This incremental capital gives us greater flexibility in our merchandising strategies as well as in managing inventory and customer payment terms to maximize revenue and profitability.”


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