‘Disappointing Setback’ For ShopNBC, As Sales Only Rise 2 Percent To $135 Million In Third Quarter

ValueVision Media, ShopNBC’s parent, reported disappointing third-quarter results Wednesday, with net sales increasing 2 percent to $135 million.

Gross profit at the No. 3 home shopping network rose 6.8 percent to $50 million; gross margin rose to 37.2 percent; and Internet-sales penetration increased to 44.1 percent.

ShopNBC had previewed these results earlier this month.

“As previously reported, lower than expected Q3 net sales and adjusted EBITDA is a disappointing setback in our progress toward rebuilding the business,” ShopNBC CEO Keith Stewart said in a canned statement.

“Third-quarter sales were principally impacted by a sales shortfall of 20 percent in consumer electronics along with a greater than anticipated decline of 13 percent in sales of watches, which off-set double-digit sales gains and strong margins in our jewelry, home, health and beauty and fashion and accessories categories.”

Here is the rest of Stewart’s excuses.

“We are focused on improving the consumer electronics business with specific action plans under way,” he said. “This includes recruiting new talent and expanding its merchandising team as well as improving product and brand assortment. The number of new vendors across our other categories continues to grow, as our multichannel retail business presents an attractive sales platform to expand their business and brand visibility. We expect to further reinforce that trend with additional prominent brands, such as Brooks Brothers and Hartmann luggage, that will delight the customer and further differentiate ShopNBC.”

ShopNBC reported an Adjusted EBITDA loss of $0.5 million on lower than anticipated sales. In addition, Adjusted EBITDA was impacted by additional TV distribution costs related to a 5 percent increase in average homes and improved channel position in certain markets. It is important to note that investments in distribution help drive increased customer penetration and can take several quarters before they become fully productive.

ShopNBC CFO William McGrath chimed in.

“Our balance sheet remains solid with cash and cash equivalents, including restricted cash, of $32.7 million in Q3 ’11 versus $42.5 million in Q2 ’11,” McGrath said. “The decrease in cash reflects planned increases in inventories in advance of the holiday season, continued use of ValuePay as a cost-effective promotional tool, and normal IT-related investments in capital expenditures.”


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9 Responses to “‘Disappointing Setback’ For ShopNBC, As Sales Only Rise 2 Percent To $135 Million In Third Quarter”

  1. R Ludwig Says:

    I hope they go belly up…..they are crooks who charge you and not give you credit for returns……Its wonderful news to hear that they are dissapointed…..I cant tolerate thieves…..what comes around goe around….and Jim Skelton is doing one hell of a good job at WOW….Ive bought many watches and other things from them…perfect to deal with….quick credit on returns….I love doing business with them…..SHOPNBC SUCKS

  2. TS Says:

    I’m not surprised at all. They charge way too much and most of their jewelry is really ugly. I have returned most of my purchases from them. They always send me 6 easy pay (or whatever they call it) offers and there’s usually nothing I’d even want to use it on. The few items I do like are just laughably expensive, even with the 6 payments.

    You’d think being backed by a giant like NBC Universal they’d have better merchandise.

  3. Wayne Says:

    ShopNBC will go the way of the dinosaur before too long because it’s not as popular as QVC & HSN. The whole NBC brand is a joke for the most part from their cable news channel MSNBC with left wing liberal clowns like Matthews, Maddow, Mr. Ed, Mika & this bland one. The only good thing about ShopNBC is the hot & beautiful ladies Connie Kunkle, Libby Floyd & a few others.

    • R Ludwig Says:

      I totally concur. I got swept up by the 6 easy payment plan…Took me a long time to get out of the Shops clutches but I did and I will never ever spend not only another cent with them, but also never spend a precious moment of time on that broadcast again…..As far as I am concerned I hope the beautiful ladies can land With Lior at World of Watches….Jim and they would make a great team…..and Id love to see them working together again….It was fun. Jim Skelton is a natural born comedian….

    • Linda Says:

      Spoken like a Faux News right wing dope…LOL

  4. LadyLuke Says:

    My biggest issue is with the INVICTA watch shows. They got rid of Jim Skelton *not that I’m complaining* AND kept INVICTA!! THIS was a stupid move! This past Sunday they had a 24 hour INVICTA watch event live from the INVICTA facility in Florida. I mean really..is INVICTA a major shareholder in SNBC or something? Because it’s seriously out of control with all of the watch shows. Clearly the few viewers/shoppers they currently have turn the channel when the watch shows are on *hence the sales decline* which as of late seems to be 99% of the time. & so much for the brite idea to have the INVICTA CEO start showing up now to try & push sales as if that would matter to the vast majority who DON’T WANT A CRAPPY LOOKING INVICTA WATCH!! Let’s just keep it real SNBC.. time pieces- high end & low end are one of the biggest trends in fashion demand today & have been for several years. Once you accept that the INVICTA brand is NOT in demand & the majority no longer wants to purchase INVICTA the SNBC brand just mite improve for the better!

  5. R Ludwig Says:

    Lady Luke You are 1000% right on target…….Its almost like a desperation move…….NBC has a knack of making wrong decisions at the right time…..Jim is happy and I am tickled pink that the CEO has to work for a living instead of being catered to in his yacht.
    I hope the unsold watches help sink the ship…… 🙂

  6. Agnes Says:

    Not shocked, and, don’t think it has anything to do with MSNBC, it has to due with poor quality stuff they are selling and way too many watch shows.

  7. Camille,olivieri Says:

    I am sick of those Invicta ugly looking watches What happened to Swiss watch International? Where are all their wonderful vendors. I click them off everyday. HSN is great. Shop,NBC sucks! Really all those ugly Invicta watches that nobody,wants.

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