Posts Tagged ‘conference call’

Next Time We’ll Take Our No Doz Before Listening To A ShopNBC Earnings Call

March 16, 2010

Keith, liven it up, hah?

We were good soldiers Tuesday and listened to a replay of ShopNBC’s fourth-quarter conference call to see if we’d hear any juicy tips about the company’s plans.

Well, we’re sorry to report that the call with analysts was about as bland as they come.

In fact, and we are not joking, we dropped the phone twice when we nodded off in the middle of the replay. ShopNBC CEO Keith Stewart and new president Bob Ayd were among those on the call.

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ShopNBC Has Gained Traction For Turnaround, CEO Keith Stewart Says

November 18, 2009

Keith Stewart

ShopNBC saw a slip in sales, but substantially cut is losses in the third quarter, prompting officials to say Wednesday that the company’s turnaround is moving forward.

“The turnaround of ShopNBC has gained traction,” ShopNBC CEO Keith Stewart said during a third-quarter conference call.

“Changes to the business merchandising efforts are starting to unlock our customers growth potential,” he added. “And once you have traction, it’s full speed ahead…Q4 is the right quarter to continue accelerating forward.”

Third-quarter revenue was $119.4 million versus $124.8 million, a 4 percent drop versus the same period last year, as ShopNBC intentionally lowered its average selling price by 49 percent and increased unit volume by 90 percent. Net average selling price was lowered to a record $95 during the quarter versus $187 in the year-ago quarter.

“This reduction in our average selling price is an essential part of our strategy to increase viewership, rebuild out customer base and increase unit volume,” ShopNBC chief financial officer Frank Elsenbast said.

He noted that ShopNBC had changed its product mix to more health, beauty and home items and less high-ticket consumer electronics products.

Adjusted EBITDA was a loss of $5.6 million compared to a loss of $13.3 million in the year-ago period. The net loss for the third quarter was $12.9 million compared to a $20.8 million for the same quarter last year.

Net sales in the first nine months were $372.6 million, a drop from $423 million in the prior-year period. The net loss for the first nine months was $33.2 million, down from $54 million a year ago.

In the third quarter ShopNBC got 1.1 new customers each minute every day, and saw 4 percent growth in net orders, the first increase in seven quarters, according to Stewart.

Judy Crowell

The network added 122 vendors, included big names like actress Suzanne Somers and celebrity plastic surgeon Dr. Robert Rey, who has a show on E! Entertainment Television.

SHopNBC is now “the definitive destination for watches,” with sales up 66 percent in the third quarter, according to Stewart.

Beauty “was another out-performer in the quarter, and it’s firing on all cylinders,” Stewart said.

Beauty sales were up 77 percent over last year, with 29 new brands launched, including Rey’s skincare line.

On the fashion side, ShopNBC debuted 50 new brands and concepts in the third quarter with sales up 6 percent, according to Stewart. It will launch 17 fashion lines before the end of the year, including the Judy Crowell Collection, from the former QVC and HSN host.

Stewart was upbeat about the home shopping business in general and ShopNBC in particular.

“This industry itself will continue to grow over brick-and-mortar,” he said. “The power of the Internet and television is pretty tough to beat.”

As for ShopNBC, the CEO said, “We also have stated previously we will double our sales every five years.”

The network needs 15 percent compound growth quarterly to achieve that target, according to Stewart.