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.