Posts Tagged ‘second quarter results’

ShopHQ Records 5 Percent Sales Hike, To $156.6 Million

August 21, 2014

ShopHQ, recently under new management, posted second-quarter net sales of $156.6 million, up 5 percent compared with the year-ago period, the No. 3 home shopping network said Wednesday. The Minnesota-based channel has new offices in Manhattan now, by the way.

http://shophq.mwnewsroom.com/press-releases/valuevision-reports-second-quarter-2014-results-nasdaq-vvtv-1138859

ShopHQ’s growth in the second quarter was greater than QVC’s, but less than HSN’s. Industry leader QVS saw a 3 percent jump in revenue, to $1.4 billion. HSN’s net sales rose 6 percent, to $556.5 million.

ShopHQ CEO Mark Bozek

ShopHQ CEO Mark Bozek

ShopHQ’s quarter was boosted by strong performances in the fashion and accessories, beauty, and health and fitness categories.

The CEO who replaced Keith Stewart, HSN vet Mark Bozek, had this to say.

“The company delivered solid second-quarter results with strong growth in total customer counts and increased order volume on mobile devices,” Bozek said in a canned statement.

“I am excited to be leading the company into a new phase of growth while working alongside our newly formed board and a dedicated and re-energized employee base.”

At ShopHQ gross profit dollars increased 9 percent to $60.4 million, as gross profit as a percent of sales for the quarter improved to 38.6 percent, compared to 37.5 percent a year ago.

Adjusted EBITDA increased to $5.5 million in the second quarter versus $3.8 million last year, driven by the company’s sales and gross profit improvements.

Adjusted net income was $800,000, or one cent a share, compared to an adjusted net loss of $800,000 in the second quarter last year.

“Our commerce platforms, led by our reach into 87 million TV homes in the U.S., are unique assets that provide us with tremendous potential,” Bozek said. “Driving growth will largely be centered around attracting and building a diverse portfolio of proprietary brands and products with the goal of growing our customer base.”

“We will be focused on supporting the growth of these proprietary brands with immersive, personality-driven programming that is designed to drive greater engagement and social commerce on all our platforms,” ShopHQ’s new honcho said.

“Our process is all about an evolution of the business — not a revolution,” Bozek said. “Our recently established office in New York City should aid us in all these efforts. I plan to elaborate more on our new vision for the company in the coming months, as we begin to execute on our strategy of a more fully leveraged multichannel commerce platform.”

Chief Financial Officer and Executive Vice President William McGrath, who seemed to have escaped the ax under the new regime, had this to say.

“We ended the quarter with $23 million in cash and restricted cash compared to $27 million at the end of Q1’14,” McGrath said. “Net use of cash includes $5 million in working capital and $3 million in capital expenditures, partially offset by Adjusted EBITDA of $6 million in the quarter.”

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HSN Posts 6 Percent Gain, To $556.5 Million, In Second Quarter

August 8, 2014

HSN’s net sales rose 6 percent, to $556.5 million, in the second quarter compared to the prior-year period, the No. 2 home shopping network reported Thursday.

That growth outpaced industry leader QVC, which earlier in the week posted a 3 percent jump in revenue in the second quarter, to $1.4 billion.

At HSN in the quarter, digital sales were up 11 percent, with penetration increasing 180 basis points to 37.2 percent.

Mindy Grossman

Mindy Grossman

Sales grew in beauty, home design, health and culinary, offset by lower sales in electronics and jewelry. Units shipped increased 4 percent and the average price point increased 2 percent.

Gross profit increased 5 percent to $196.5 million, with gross margin decreasing 30 basis points to 35.3 percent primarily due to an increase in shipping promotions. Operating expense leverage (excluding non-cash charges) improved 80 basis points to 24 percent.

Adjusted EBITDA increased 10 percent to $62.7 million. GAAP operating income increased 11 percent to $52.1 million.

Consolidated sales for HSN Inc., which includes the home shopping network and the company’s Cornerstone unit, were $855.2 million, a 5 percent increase.

“Our focus during the second quarter remained on engaging our customers, emphasizing our unique content and proprietary products, and strengthening our digital platforms,” HSN CEO Mindy Grossman said in a canned statement.

“HSNi sales increased 5 percent and digital sales grew 9 percent with mobile now representing 15 percent of our total sales. During the quarter, we saw a bifurcation within our business,” she said.

“HSN had strong results with sales up 6 percent, digital sales up 11 percent and Adjusted EBITDA up 10 poercent. While Cornerstone maintained top line growth of 4 percent, margins were impacted by a highly promotional marketplace,” Grossman said.

“Our customer file metrics at both HSN and within the Cornerstone portfolio were at record highs,” she said. “We also returned $63 million to our shareholders through our capital return plan.”

ShopNBC i.e. ShopHQ To Report Second-Quarter Results Aug. 21

August 9, 2013

Call it ShopNBC. Call it ShopHQ.  Call it ValueVision Media Inc.

The No. 3 home shopping network will release its second-quarter results after the market closes on Aug. 21, the company said Thursday.

Management will host a conference call/webcast to review the results at 4:30 p.m. the same day.

CEO Keith Stewart, President Bob Ayd, CFO Bill McGrath and COO Carol Steinberg will all be on the call, which is open to the general public.

WEBCAST/WEB REPLAY: http://www.media-server.com/m/p/7yqrbt7i

TELEPHONE: 866-277-1184; Passcode: 95412533

HSN Posts 5 Percent Sales Growth In Second Quarter, To $562.2M

August 2, 2013

HSN racked up net sales of $526.2 million in the second quarter, up 5 percent from the prior-year, the home shopping network said Thursday.

The No. 2 home shopping channel saw sales rise in home design, household, electronics, apparel and accessories, offset by lower sales in jewelry (Oh no!) and culinary. Net sales were also favorably affected by lower return rates.

“Our strong financial performance during the second quarter is a result of the uniqueness of our customer experiences, the power of our digital platforms and the quality of our brands and products,” HSN Inc. CEO Mindy Grossman said in a canned statement.

“Sales for the quarter were up 6 percent, digital sales increased 10 percent and EPS (earnings per share) rose 30 percent,” said Grossman, speaking about both HSN and Cornerstone, which comprise HSN Inc. “In addition, we continued returning value to shareholders through our share repurchase and cash dividend programs.”

Digital sales for the home shopping network rose 10 percent, with penetration increasing 160 basis points to 35.4 percent. The average price point decreased 4 percent while units shipped increased 7 percent primarily due to an increase in clearance activity.

Gross profit increased 3 percent to $187.5 million. Gross margin decreased 60 basis points to 35.6 percent, primarily due to an increase in shipping and handling promotions.

Operating expenses (excluding non-cash charges) increased 1 percent to $130.3 million. Adjusted EBITDA increased 8 percent to $57.1 million compared to $52.7 million in the prior year. Operating income increased percent 8 percent to $47 million compared to $43.3 million in the prior year.

Sales for HSN Inc., which includes the HSN network and the Cornerstone unit, increased 6 percent over the prior year to $812.6 million. While HSN’s net sales increased 5 percent to $526.2 million, including 10 percent growth in digital sales. Cornerstone’s net sales increased 8 percent to $286.4 million, including 10 percent growth in digital sales.

QVC Posts 4 Percent Revenue Gain In Second Quarter

August 9, 2012

The No. 1 home shopping network, QVC, recorded a 4 percent increase in second-quarter revenue, to $1.23 billion, its parent Liberty Interactive Corp. reported Wednesday.

HSN last week also reported a 4 percent increase in second-quarter revenue, to $501.9 million.

QVC’s U.S. gross product revenue increased 5 percent as a result of strength in beauty, electronics and apparel products. But that was reduced to a 4 percent increase overall due to an increase in second-quarter returns as a percent of gross product revenue of 117 basis points, primarily due to increased return rates in apparel, health, beauty and jewelry due to the mix of products within those categories, according to QVC.

Mmmmmm, seems like QVC had a problem with returns, which is perhaps the reason why we got a warning letter about our returns this week. We’ll be blogging about that letter in the next few days.

Average selling price (ASP) for QVC items increased 5 percent from $52.02 to $54.84, while units sold remained flat compared to the prior-year second quarter.

“QVC’s performance was driven by another strong quarter of eCommerce and mobile purchasing, a trend that continues to accelerate across our global markets,” QVC president and CEO Mike George said in a canned statement. “Our customers are embracing QVC’s unique digital shopping experience, fueled by great values on distinctive products across each of our growing platforms.”

In the second quarter, eCommerce revenue increased 15 percent to $498 million and grew to 39 percent from 35 percent as a percentage of total U.S. revenue. Adjusted OIBDA increased 3 percent to $315 million, with adjusted OIBDA margin decreasing slightly due to lower product margins.

QVC’s consolidated revenue, which includes the domestic and international networks, increased 4 percent, to $2 billion.

“QVC continues to produce solid results despite a challenging macroeconomic environment,” Liberty Interactive CEO Greg Maffei said in a canned statement. “We were pleased we received government approval in China and finalized our joint venture with China National Radio in July. “We have a stockholder vote later today and expect our new Liberty Ventures tracking stock to begin trading on August 10. We continued our share repurchases reinvesting $257 million.”

QVC’s international revenue increased 4 percent in the second quarter to $694 million. The second-quarter results included the negative impact of the strengthening of the U.S. dollar against the Euro and U.K. Pound Sterling that was somewhat offset by the positive impact of the weakening of the U.S. dollar against the Japanese yen.

International adjusted OIBDA increased 9 percent to $123 million and adjusted OIBDA margin increased 76 basis points in the second quarter.

QVC Japan’s revenue grew 13 percent in local currency in the second quarter primarily due to increased sales in home and apparel as well as the earthquake and related events experienced last March. QVC Japan’s ASP in local currency increased 3percent and units shipped increased 12% in the second quarter.

QVC Japan’s second-quarter returns as a percent of gross product revenue in local currency increased by 144 basis points primarily due to higher return rates in apparel, jewelry and home due to the mix of products within those categories.

QVC Japan’s adjusted OIBDA in local currency increased 16 percent and adjusted OIBDA margin increased 65 basis points in the second quarter. The increase in adjusted OIBDA margin was due primarily to lower commissions expense as a result of contract renegotiations and fixed commission fee revenue leverage as well as a higher absorption of warehouse and call center costs due to increased revenue. Product margins also increased primarily due to higher product margins in the beauty category.

QVC Germany’s revenue declined 1 percent in local currency in the second quarter primarily due to decreased sales in health and fitness and apparel, somewhat offset by increased sales of beauty products.

QVC Germany’s ASP in local currency decreased 3 percent and units shipped declined 1 percent in the second quarter. QVC Germany’s second-quarter returns as a percent of gross product revenue in local currency improved by 219 basis points and was primarily due to a shift in mix from apparel to beauty.

QVC Germany’s adjusted OIBDA in local currency increased 7 percent and adjusted OIBDA margin increased 127 basis points in the second quarter. The improvement in OIBDA margin was driven by a reversal of earlier bonus accruals to better reflect current business results, along with expense management and lower returns volume.

QVC UK’s revenue increased 4 percent in local currency in the second quarter primarily due to sales increases in beauty and apparel products. QVC UK’s ASP in local currency increased 3 percent and units shipped increased 1 percent for the second quarter. QVC UK’s second quarter returns as a percent of gross product revenue in local currency increased by 37 basis points primarily due to a product mix shift to apparel.

QVC UK’s adjusted OIBDA in local currency decreased 16 percent and adjusted OIBDA margin decreased 342 basis points in the second quarter. The decrease in adjusted OIBDA margin was primarily due to higher duplicate running costs including an existing lease cancellation accrual associated with the transition to the UK’s new headquarters in June.

QVC Italy continued the trend upward with a 21 percent sequential sales growth in local currency over the first quarter of 2012. QVC Italy’s sales were primarily from the home, beauty and apparel product categories.

HSN To Report Second Quarter Results Aug. 3

July 13, 2011

HSN will release its second quarter 2011 results Aug. 3 at 8 a.m., the compnay said Wednesday.

HSN CEO Mindy Grossman and Judy Schmeling, executive vice president and chief financial officer, will hold a conference call at 9 a.m. to review these results.

There will also be a simultaneous audio webcast available via the company’s website at http://www.hsni.com. A replay of the conference call can be accessed until Aug. 17 by dialing 800-642-1687 or 706-645-9291, plus the pass code 81664724 and will also be hosted on the company’s website for a limited time.

HSN’s Sales Rise 3 Percent In Second Quarter To $466.4 Million

August 4, 2010

The No. 2 home shopping network HSN Wednesday reported a 3 percent increase in net sales for the second quarter, to $466.4 million.

HSN’s gross profit increased 6 percent to $162.2 million, its parent, HSNi, reported.

HSN.com sales increased 10 percent over the prior year and now represent 30.4 percent of HSN’s net sales, up from 28.4 percent in the prior year.

Gross profit margin improved 120 basis points to 34.8 percent from 33.6 percent. These results were primarily due to a strategic shift in product mix towards fashion and wellness, according to HSN. This mix shift also resulted in a 6 percent increase in units shipped and a 2 percent decrease in average price point.

“At HSN, strong growth in fashion and wellness helped drive an increase in gross profit of 120 basis points and contributed to the 11 percent growth in the number of best customers,” HSNi CEO Mindy Grossman said in a prepared statement.

HSN’s adjusted EBITDA increased 17 percent to $45.1 million from $38.4 million as a result of increased gross profit, partially offset by a 2 percent increase in operating expenses, excluding non-cash charges.

The home shopping network’s operating income increased 20 percent to $34.5 million compared to $28.7 million in the prior year.

HSNi, which owns HSN and Cornerstone, saw net sales grow 8 percent to $690 million in the second quarter over the prior year. Internet net sales increased 16 percent and now represent 38.5 percent of HSNi net sales.

“HSNi’s positive performance continued in the second quarter with a net sales increase of 8 percent and an EBITDA increase of 47 percent,” Grossman said. “Our focus on creating multi-channel experiences for our customers resulted in e-commerce revenue growth of 16 percent and an increase in our Internet penetration to 39 percent from 36 perclent in the prior year.”

Cornerstone’s net sales increased 20 percent to $223.6 million, which included 23 percent growth in Internet sales.

“At Cornerstone, the recovery of the business accelerated with net sales increasing 20 percent led by renewed demand for the Frontgate, Ballard Designs and Garnet Hill brands, turnaround efforts at TravelSmith and e-commerce initiatives across the portfolio,” Grossman said. “We are focused on building our business for the long-term – intelligently, strategically and with a commitment to delivering sustainable results and value for our shareholders.”