ShopHQ Posts 7 Percent Sales Increase, To $147 Million, In Third Quarter

Yowser! ShopHQ saw its sales jump 7 percent in the fiscal third quarter, although it still is bleeding red ink — albeit less than last year.

The No. 3 home shopping network Wednesday reported net sales of $147 million versus the year-ago quarter, “driven primarily by strong sales results in the fashion & accessories and home & consumer electronics categories,” according to a press release.

ShopHQ, formerly ShopNBC, outpaced its bigger rivals in the third quarter. QVC had a 5 percent increase in sales, to $1.3 billion, while HSN was flat at $538.6 million.

Adjusted EBITDA improved to $4 million versus $1 million in the same quarter last year, reflecting higher sales and improved gross profit margin.

But the company reported a net loss of $1 million, compared with a net loss of $4 million a year ago.

Year to date, ShopHQ’s reported a net sales increase of 9 percent to $447 million, adjusted EBITDA of $13 million compared to an approximate breakeven adjusted EBITDA position last year, and a net loss of $1 million compared to a net loss of $16 million for the same period last year.

Total customers purchasing over the last 12 months rose 13 percent to 1.25 million.

“The growth in the customer base reflects continued diversification of the sompany’s merchandise at lower price points as well as a product mix shift from the jewelry & Watches category to the fashion & accessories and home & consumer electronics categories,” the press release said. “Improvements in customer satisfaction and channel positioning also contributed to customer growth. In addition, the size of the total customer base who purchased during the three months of Q3’13 increased 20 percent versus last year’s same period.”

Net shipped units rose 31 percent to 1.7 million in the third quarter over the same quarter last year, reflecting a broader merchandise mix and a 20 percent decline in the average price point.

Onternet sales penetration increased to 47 percent. Mobile net sales grew 45 percent, increasing to 22 percent of Internet sales compared to 18 percent a year ago.

“We are pleased with our operating performance in the third quarter, which marked our sixth consecutive quarter of sales growth and positive Adjusted EBITDA,” ShopHQ CEO Keith Stewart said in a statement. “We continued to improve our product offerings and to diversify our product mix. We achieved double-digit customer growth. Our rebranding to ShopHQ, your shopping headquarters, is largely complete, and we believe we are well positioned for the holiday season.”

Stewart, by the way, is one of the executives that a group of dissident shareholders wants canned.


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3 Responses to “ShopHQ Posts 7 Percent Sales Increase, To $147 Million, In Third Quarter”

  1. Abigail Says:

    Wow, I guess since they are now showing repeats all night, they are saving money that way and maybe as they now say ‘people are buying multiples’ of things including wigs as the one host said the other day, still nothing there I would buy that I can’t get at the local mall.

    And could the and all the rest of them just say THANK YOU instead of ‘congratulation’s as if a customer has won a prize when we are buying things?

  2. AprilD Says:

    I have been purchasing more at ShopHQ than at the other two the past 6 months. They have free shipping days when you use their proprietary card frequently and this is one of my major gripes with the other 2, especially QVC. Also, as they do not produce the mass quantities the others do I have found their quality to be better. I agree the replays for 6 hours every night are awful but they couldn’t have had much impact on the numbers as they just started this a few weeks ago. By the way, have you guys noticed that QVC does not show retail prices any more on most shoes and fashions. You can get better prices and free shipping at lots of sites on the web for the same items. HSN is also charging full retail on brand names like Vince Camuto and NYDJ. I shop around online and get 30% to 50% less at brick and mortar store online sites. Especially on their weekend sale days.

  3. Queen Celeste Says:

    Good news. While I have gripes about them letting some of my favorite hosts go, I’ve been shopping with them since ValueVision and have gotten some fantastic bargains. I love the frequent six value pays, and as AprilD mentioned, free shipping days. They also have some great lines of jewelry. As a night owl and insomniac, I just wish the overnight programming would go back to live. I also miss the wonderful Carmella Sterling, as she often was on during the overnights.

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