Archive for April, 2020

ShopHQ Sees 4Q Sales Dive 22%, Lays Off 152 Employees

April 17, 2020

If you are a home shopping network, you don’t want to be ShopHQ. The company reported dismal fiscal-fourth quarter earnings this week, and dropped the ax on another raft of employees.

Revenue in the fourth quarter nosedived 22%, to $124 million, compared to the same year-ago period. What happened?

In a press release, ShopHQ said “half of this decline was expected and attributable to the company’s recent customer file decline.” We have no idea what that means.

There were also three one-time events that drove the dip, the network said.

They were:

* Scheduling conflicts in December with top two beauty brands,

* Reduction in consumer electronic products due to the largest CE vendors requiring “cash in advance” payment terms, and

* Reduction in watch revenue resulting from management’s strategy to reverse its five-plus year customer file decline by reducing the average selling price to capture more new customers.

The network also had an $18.4 million net loss in 4Q, versus a $10 million loss in that same quarter in the year-ago period.

In addition, one of our readers tipped us off that the Minneapolis Star Tribune reported that ShopHQ had laid off 152 employees. That story made reference to our blog, as a source for the exit of host Laura Duffek.

On the plus side, ShopHQ said it had completed its acquisition of J.W. Hulme, “an iconic, 114-year-old American brand offering artisan-crafted accessories and apparel via e-commerce, catalogs and one flagship retail store in St. Paul, Minnesota.”

Iconic? We’ve never heard of it.

ShopHQ got a $4 million private cash infusion led by Eyal Lalo, Invicta’s CEO and vice chairman of the network’s parent company, iMedia. The watch company Invict has a huge stake in ShopHQ, which is why every time you turn on the channel you see its timepieces being hawked.

What did CEO Tim Peterman have to say?

First and foremost, in terms of the COVID-19 situation and these uncertain and stressful times, iMedia continues to be focused on taking every necessary step to keep its employees, vendors, customers, guests, and their families safe.

We are also focused on continuing to provide our customers with the products and services they love, and we feel very fortunate our company remains operational and relevant so we can continue to build value for our shareholders.

In terms of Q4 performance, from a ShopHQ revenue perspective, it was a mixed report card. We achieved significant viewership, customer file, and product assortment successes, but we also absorbed revenue pressure from three unplanned events. With that being said, I’m proud of how our teams reacted to reduce the probability of re-occurrence.

Financially, our turnaround continues In our first nine months since May 2019 when I rejoined as CEO, we materially reduced the company’s adjusted EBTIDA loss compared to the prior nine months.

Strategically, Q4 is when we really began to demonstrate our plan to grow our portfolio of engaging niche television networks, niche national advertisers and complementary media services. We launched Bulldog and our membership service, ShopHQ VIP. We acquired two important new businesses that will further accelerate our evolution into a profitable, growing interactive media company.

If you say so, Tim.

Dubrow $28.95 Hand Sanitizer Raises Ruckus At ShopHQ

April 17, 2020

ShopHQ made our favorite gossip column, the New York Post’s Page Six, this morning, as did vendors Heather Dubrow and her plastic surgeon hubby Terry.

Heather, a reality TV star from “The Real Housewives of Orange County,” and her husband, of the TV show “Botched,” sell the Consult Beauty line of products on the Minnesota-based home shopping network.

We hadn’t seen this, but had heard, that most recently the glamorous Left Coast couple was hawking their own brand of hand sanitizer for $28.95 in the midst of the coronavirus pandemic.

That got them rammed on Twitter for alleged price-gouging, and Page Six picked up on the brouhaha.

The Dubrows defended their pricing and actions to Page Six. Terry said that prices have soared for the ingredients in the Consult hand sanitizer. Heather, in turn, said some of the proceeds of the sales, some $35,000, had gone to a food bank in Cali.

Not a good week for ShopHQ. But more on that shortly.

Shop LC Hawks Coronavirus Face Masks

April 7, 2020

Thanks to Queen Celeste for this tip about Shop LC.

On air now: Shop LC is offering disposable face masks, 5 for $7.99 plus shipping 10 per customer. First place I’ve found them. They said they are also donating them to their local hospitals.

Hope everyone is well. This is just surreal.

Yes it is.