ShopHQ Posts 55% Revenue Gain in Fourth Quarter

Here’s a shock: good financial news coming out of ShopHQ.

Last week the home shopping network announced that its fiscal fourth-quarter net sales were $193.8 million, a 55% increase, or $69 million, over the prior-year period.

“Q4 was another exceptional quarter and 2021 was a transformational year,” CEO Tim Peterman said in a canned statement. “Our demonstrated abilities to capitalize on the convergence of entertainment, advertising and ecommerce continue to accelerate our growth opportunities.”

Still, the Minnesota-based network saw a net loss of $5 million in the quarter, up from last year’s loss during that same period of $2.7 million. The 2021 fourth quarter loss included $1.5 million of transaction, settlement, and integration costs compared to $0.3 million in same prior-year period.

Net sales for the full-year in 2021 were $551.1 million, also up, from $455.2 million the prior year.

Last year jewelry and watches accounted for 37% of sales, down from 43% the prior year. Home and consumer-electronics goods made up 22% of sales, up a hair from 21% the earlier year. Fashion and beauty made up 21% of sales, down from 25%. And there was a big jump in fashion and accessories, which made up 21% of sales, a rise from 11% the prior year.

For the full-year 2022, ShopHQ expects to post revenue of $675 million to $725 million,

HSN Beauty Vendor Marilyn Miglin Dies At 83

We’re sad to report the death of another classy lady, and savvy entrepreneur, who sold her wares on a home shopping network: Marilyn Miglin.

https://chicago.suntimes.com/obituaries/2022/3/16/22980778/marilyn-miglin-dead-cosmetics-queen-home-shopping-network-host-wife-real-estate-developer

If you read this obit you’ll see she had a really fascinating life, although many of the stories incorrectly identified her as an HSN host. Miglin died of complications of a stroke.

This may sound silly, but we were thinking about her yesterday, even before we heard she had passed. We are getting another cat (we hope) and we just bought a spray with pheromones that is supposed to calm felines when they are being introduced to new housemates.

That made us think of the perfume Miglin sold on HSN. We were thinking we hadn’t seen her in awhile.

The death of Miglin, a Chicago native, came not too long after we all learned that Tova Borgnine, who sold her perfume on QVC, had died.

They were very similar in many ways. Both were very gracious on-air, beautifully dressed and groomed. They always seemed kind and genuine — and glamorous.

There is one big difference: Miglin’s life had a very tragic turn. Her husband, prominent real estate developer Lee Miglin, was murdered in 1997 by the same evil lunatic that also stalked and killed fashion designer Gianni Versace.

It was not only a devastating turn but a heartbreakingly sordid one, as portrayed in the FX mini-series about the sicko killer, Andrew Cunanan.

HSN, Miglin Part Of FX Tale Of Versace Murder

May she rest in peace.

Ever-Gracious QVC Vendor-Entrepreneur Tova Borgnine Dies At 80

If ever there was a class act on QVC that we looked up to, aspired to be like, it was beauty entrepreneur Tova Borgnine. So we were saddened to read on Facebook today that she had passed away at age 80.

The wife and then widow of talented actor Ernest Borgnine, Tova sold perfume and some other products on the home shopping network. She was also perfectly groomed and dressed, gorgeous. She epitomized elegance.

Her own FB page posted news of her death:

“With a Halo of Heaven she captured our hearts, minds and senses giving us a Signature that shared our beauty.

With an eye for detail and design her jewelry brought sparkle to each and every day.

With her stories we took a journey with her from Hollywood to distant lands feeling as though we stood beside her.

From our hearts, thank you Tova for the grace, beauty, elegance and joy you brought to us all.

It is with a heavy heart that today I share of the peaceful passing of our founder, leader and friend, Tova Borgnine.

There has not been a day that Tova did not speak of her friends in TOVA and her QVC family around the globe – each of you through your Welcoming her into your homes on QVC, your stories you shared in posts and testimonial calls and moments of meeting fueled her passion to continue pioneering and innovating with her beauty products and jewelry designs. She always considered it an honor to be part of your day.”

Her team asked QVC shoppers to share their favorite Tova memories.

Former QVC hosts Lisa Robertson and Steve Bryant wrote fine tributes to her. Bryant recalled how they huddled together to figure out the best way to sell fragrances on-air — scent not experienced. And then there was that wild ride with her and “Ernie” to dine in Philly, and the party they threw in honor of Bryant’s book in their Beverly Hills mansion.

Great tales. Please read them.

QVC Is Hawking Used, Oh, We Mean ‘Pre-Owned,’ Designer Handbags

Our bestie Ann M. tipped us off that QVC is now selling second-hand designer bags on its website. God, we hate the term “pre-owned.”

We’re talking Louis Vuitton, Gucci, Prada, Hermes and Chloe here. Wow!

https://www.qvc.com/content/handbags-luggage/preowned-handbags.html

And they may be used, but they still ain’t cheap. The prices on the handful of items online now range from $795 to $6,500.

These items are “curated,” i.e. authenticated, by LXRandCo.

“As expert curators of the world’s best luxury goods, LXR prides themselves on their rigorous authenticity protocol,” according to QVC.com. “Every product they acquire has undergone a thorough multi-step control check by master authenticators to meet the highest standards of excellence.”

We know that some department stores, like Dillard’s and the late-and-great Lord & Taylor, sold used designer bags. It’s an interesting foray for the “Q.”

QVC, HSN Parent Saw $250 Million Loss From Warehouse Fire, Sales Drop 3% Last Year

Qurate Retail, the parent company of QVC and HSN, suffered a $250 million loss due to the fire that destroyed its North Carolina warehouse in December. Oh, and revenue was down for that quarter and the full year in 2021.

The CEO says he’s not pleased with the performance. No kidding? We’re sure Qurate’s stockholders aren’t thrilled, either.

Last week Qurate reported its earnings, and they were rather dismal. At QxH, namely QVC and HSN combined, revenue decreased 7% in the fourth-quarter, to $2.54 billion, and dip 3%, to $8.28 billion, for the full year.

Nor surprisingly, the owner of the nation’s two biggest home-shopping networks offered details about how financially devastating the fire at a huge QVC warehouse in Rocky Mount. One employee was killed in that tragedy.

Here’s what Qurate said:

“In the fourth quarter, QxH incurred fire-related costs of approximately $250 million, which includes $134 million in loss on inventory, $87 million in loss on fixed assets, and $29 million in other fire-related costs, including $21 million of costs that were not fully reimbursable by QVC’s insurance policies, primarily related to shut-down pay and severance expense that were netted with expected insurance recoveries.

Based on the provisions of QVC’s insurance policies, Qurate Retail has determined that recovery of certain fire related costs is probable, and an insurance receivable balance of $129 million, net of $100 million of insurance proceeds received in advance, has been recorded as of December 31, 2021. As of the date of this release, Qurate Retail is still in the process of assessing damage to property and inventory and submitting relevant insurance claims.

There is approximately $117 million of inventory at the Rocky Mount facility that is currently being assessed for damage and is included on the consolidated balance sheet as of December 31, 2021. We anticipate any additional inventory losses will be covered by our insurance policies.

QxH expects to continue to record additional costs and recoveries until the property and inventory assessment is complete and the insurance claim is fully settled. While the company has started taking steps to minimize the overall impact to the business, we expect a negative impact to net sales because of lost inventory as well as increased warehouse and logistics costs in 2022.”

And what about the drop in revenue?

Here’s what Qurate said:

“QxH revenue declined in the fourth quarter primarily due to a 6% decrease in units sold, reflecting supply-chain constraints and product scarcity for home and electronics. Average selling price was flat in the quarter. QxH experienced a 12% increase in average spend per customer and an 11% increase in items purchased per customer, which were offset by a decline in customer count versus 2020’s solid gains. QxH reported declines primarily in home and electronics, partially offset by growth in apparel and beauty.

For the full year, QxH revenue decreased due to a 2% decline in average selling price and 1% decrease in units sold. QxH saw an 8% increase in average spend per customer and a 10% increase in items purchased per customer for the full year, which were offset by reduced customer count. QxH experienced declines in home, electronics and beauty, partially offset by growth in apparel and accessories.”

And here’s what Qurate’s new CEO and president had to say.

“As a team we are focused on a turnaround of this business that will modernize the value proposition, stabilize our core flagship brands and capitalize on growth opportunities,” David Rawlinson said in a canned statement. “In the fourth quarter, we managed through a number of continuing challenges and are not pleased with the performance. We feel confident in our ability to deliver, although we know it will take time to improve some aspects of the business and innovate.”

“As we concentrate on enhancing the value proposition and establishing a new growth path, we are maintaining a focus on cost control and free cash flow generation. We believe that we can sustain strong free cash flow while we manage through these transitions and invest in the future.”

HSN Host Colleen Lopez To Slow Down, Cut Back Air Time

We are sitting in a mall working on a story for our day job and decided to check email. Was shocked to see that some of our readers had spotted big news about veteran HSN host Colleen Lopez.

We don’t have all the details, but she has announced that she is cutting back her on-air appearances and that her Thursday night show, “The List,” is kaput.

Here’s what she had to say to her distraught fans on Facebook:

“Please don’t be disappointed – HSN has been AMAZINGLY supportive of me and my request to have a lighter schedule,” Lopez posted. “This is the right choice for me at the right time. I’ve been an HSN Host for 28 years and I’m very grateful and lucky to be able to say say I still love my job. But, I’m excited to not have to work every weekend and every Thursday night starting in March.”

She added, “I will still be on air hosting jewelry and fashion shows every week and I’m so looking forward to all the exciting things we have coming up! Thank you for understanding and for your kind support! XO, Colleen.”

We can understand being tired of the grind of daily work, that’s for sure.

We like Colleen, but were not fans of the quality of her jewelry line, and wouldn’t touch her clothing line.

And while we know it’s hard to come up with new phrases when you are on TV hours on end, days on end, viewers get tired of having the same old phrases ad nauseam. It’s flying out the door. Couldn’t you just die. Get one in every color, etc.

Lopez said she will still be around.

“This is simply my choice to change my schedule!” she said. “I love my job and I’m not leaving HSN!! In fact I’ll still be hosting shows every week!”

Shop LC To Build New $50 Million HQ In Cedar Park, Texas

What is this? Our day job covering commercial real is blending into our home shopping blog.

Shop LC, the Austin, Texas-based home shopping network, sent us a press release saying it has acquired a parcel in Cedar Park, another Lone Star State town, to build a new 200,000-square-foot headquarters building.

The network will be investing nearly $50 million in the project, which will be built near the intersection of East New Hope Drive and North Bell Boulevard. Construction is expected to be complete by Sept. 30, 2024, creating 1,000 jobs and making Shop LC the largest employer in Cedar Park, a suburb of Austin.

The headquarters will be “green” or environmentally friendly, or so-called LEED-certified, as we say in the CRE biz. LEED stands for Leadership in Energy and Environmental Design.

Fuse Architecture Studios partners Beth Guillot and Paul Meyer are on the project

“Cedar Park is a beautiful and vibrant city with great schools and a strong community,” North American President Amit Agarwal said. “Selecting Fuse as our architects will be an important part of our growth and commitment to the environment. We want our new campus to showcase the next generation of how a business can be automated and operate with a low-carbon footprint.”

We assume Agarwal is head of Shop LC, whose parent company is Vaibhav Global Limited in Jaipur, India, which operates its own LEED Platinum-certified facilities.

“VGL strives to reduce its environmental footprint throughout its global operations and is committed to create sustainable futures for all,” the company said.

ShopHQ Gloats About 34% Sales Growth In December, November

ShopHQ is touting its sales growth during the holiday season, seeing a 34% jump in November and December “in its entertainment networks” compared to the prior-year period.

You didn’t know ShopHQ had “entertainment networks”? Either did we, but that’s their term for its flagship channel ShopHQ, 1-2-3.tv, ShopHQHealth and ShopBulldogTV.

For your and our information, ShopHQ apparently purchased 1-2-3.tv in November 2021. That acquisition “reaches consumers via its television network available in 40+ million German and Austrian television households 24 hours a day, 365 days a year and via its online, mobile, and over-the-top (“OTT”) digital platforms.”

Does that clear it up for you?

And here is what ShopHQ is bragging on: It launched over 40 new brands during across its entertainment networks during the third and fourth quarters.

For the full year, the entertainment networks generated about 19% of their revenue from new brand launches, which totaled over 100.

Some of the launches were:

• ShopHQ: Oro Mio 14k Italian Gold Jewelry, Imperial Pearl with Josh Bazar, Kelemata Bath & Body, MyFaceLift, Imperius Watches, Blue Stallion Farms Bath & Body and Joyce Giraud Beauty.
• 1-2-3.tv: Abtey food brands, Innersun nutritional supplements and Fenster studio decorations.
• ShopHQHealth: FlowFlex Rapid At-Home COVID Test Kit, Step2Health, Eat Like A Woman and Wakaya Wellness Tea.
• ShopBulldogTV: Frogg Toggs Outdoor Gear, RockSolar Portable Power Generators and IceCo Coolers.

“Brands matter,” ShopHQ CEO Tim Peterman said in a statement. “Passionate employees and talented vendors matter. High expectations for value, quality, and performance matter. And it’s great to see that our customers appreciate our efforts.”

QVC, HSN Parent Company Warns Of Lousy Fourth-Quarter Results For Home Shopping Networks

Qurate Retail, the owner of QVC and HSN, is warning investors that preliminary financial results for its fourth quarter are not good.

In a press release last week, Qurate said it “experienced lower-than-anticipated demand in the fourth quarter, negatively impacting expected sales.” QxH, the division that includes both home shopping networks, saw its revenue drop an estimated 6.5% to 7.5%.

“Additionally, as previously disclosed, there was a tragic fire at the company’s QVC Rocky Mount fulfillment center in North Carolina on Dec. 18, 2021,” Qurate said.

“Revenue performance at QxH deteriorated throughout the fourth quarter, deviating from initial trends indicated on our third-quarter earnings conference call,” Qurate’s new President and CEO David Rawlinson said in a statement. “We are not pleased with these results and are actively taking steps to improve our long-term performance across business units. We are looking forward to a new leadership approach at QxH and Zulily and the ongoing development of our long-term strategy.”

The company will report its official fourth-quarter earnings on Feb. 25.

“Our hearts go out to our team members and the local community affected by the Rocky Mount fire, and we remain engaged in supporting the team members and residents,” the CEO said. “We are still assessing the impact of the tragic fire in coordination with our insurance carriers.”

Qurate Retail has property and business-interruption insurance coverage, and is still in the process of assessing damage to the warehouse and inventory. It said it is submitting insurance claims to determine the recovery of certain fire-related costs in connection with the Rocky Mount fire.

QVC received an advance of $100 million from its insurance provider related to initial fire-related costs. Following the fire, QVC diverted incoming fulfillment orders to its other fulfillment centers and will continue to leverage its existing fulfillment center footprint in the near-term to mitigate the impact to business operations.

QVC To Pink Slip Almost 2,000 Workers At Burned-Down Factory

We don’t like the sound of this: QVC will be laying off the nearly 2,000 workers who were employed at the North Carolina distribution center that was destroyed by a fire last month. Doesn’t sound like it made much of an effort to find them new jobs, despite a statement last month.

Here’s the tale from one of the media outlets, The Hill, that reported on it but we’ll sum it up as well.

https://thehill.com/business-a-lobbying/business-a-lobbying/588680-qvc-to-lay-off-nearly-2000-workers-after-fire-at

As some of you may know, QVC suffered a horrendous fire at its Rocky Mount warehouse Dec. 18 that left one of its workers dead and destroyed the facility.

Now the home shopping channel has sent a “notice of closure” to the North Carolina Department of Commerce and Rocky Mount’s mayor.

“QVC will be closing and ceasing all operations” at its distribution hub in Rocky Mount, according to the letter that WRAL obtained. “As a result of this closure, QVC plans to terminate the employment of all employees employed at this location,” which was 1,953 people as of Dec. 29, was the message.

This grim news for worker follows a contradictory statement from QVC’s parent on Dec. 28, which said it would offer “career transition services” for the North Carolina workers, “including potential internal roles with the company in other locations as well as partnerships through local organizations for additional job opportunities, financial education, interview training, resume writing support, and job search training.”

Guess that went out the window.

The company still hasn’t decided what to do with the warehouse, which it said “will not be operable and there will not be work for the team for the foreseeable future.”