ShopNBC, or should we say ShopHQ, had a strong second quarter, seeing net sales jump 10 percent to $149 million, the home shopping network reported Wednesday.
The revenue growth was driven primarily by strong results in the fashion & accessories and home & consumer electronics categories, the network said.
QVC has already reported that it had a 3 percent increase in revenue, to $1.3 billion, in the second quarter. HSN’s net sales rose 5 percent, to $526.2 million.
“Second-quarter results showed strong top line growth and our fifth consecutive quarter of positive Adjusted EBITDA,” ShopHQ Keith Stewart said in a canned statement. “We continued to make progress in broadening our product offerings as well as accelerated new and retained customer growth. Our rebranding to ShopHQ, your shopping headquarters, is progressing well and our customers are responding positively.”
Adjusted EBITDA improved to $4 million in the quarter versus $1 million in the year-ago period, reflecting higher sales and lower TV distribution costs.
The network, AKA ValueVision Media, has also diminished some of its red ink, reporting a net loss of $1 million compared to a net loss of $4 million a yea ago.
Year to date, ShopHQ posted net sales up 10 percent to $300 million, adjusted EBITDA of $10 million, and net income of $200,000.
Total customers purchasing over the last 12 months rose 11 percent to 1.2 million, reflecting a broader mix of merchandise at lower average price points, improved customer experience, and the benefits of expanded TV distribution.
The size of the total customer base that purchased during the second quarter increased 22 percent versus the same period last year.
Net shipped units rose 31 percent to 1.6 million, reflecting continued diversification of the network’s merchandise mix and a 19 percent decline in the average price point.
Internet-sales penetration remained strong at 45 percent. Mobile net sales grew 56 percent, increasing to 23 percent of Internet sales compared to 16 percent in the year-ago period.
“Our balance sheet condition remains strong,” ShopHQ Chief Financial Officer William McGrath said.
“We ended the second quarter with a cash balance, including restricted cash, of $35 million. Major cash expenditures in the quarter included the final payment under our trademark license agreement with NBCUniversal of $2.8 million as well as $2.5 million in capital expenditures. ValueVision continues to maintain $12 million in undrawn availability under its $50 million credit facility with PNC. This availability further strengthens our balance sheet condition.”