Posts Tagged ‘ShopNBC’

Say What? Is ShopHQ Airing Reruns During Late Night?

November 3, 2013

One of our readers today told us that ShopHQ is airing repeats of shows that aired earlier in the day during late night.

Has anyone else seen this?

If this is so, and we have no reason to doubt it, that is pretty pathetic. But we guess it saves money not to have to pay a camera crew and host when those reruns air.

Former ShopHQ Host Libby Floyd Heads To Jewelry TV

November 3, 2013

Another ShopHQ alum has landed: Libby Floyd is going to work at Jewelry Television.

Floyd, who looks more gorgeous every time we see a new photo of her, posted the news on Facebook.

Libby Floyd

Libby Floyd

“I’m excited to announce that I’m joining the amazing team at Jewelry Television!” she wrote. “I can’t wait to reconnect with all of you on-air in the coming weeks! … See you all soon!”

Former QVC-HSN host Judy Crowell had been on then ShopNBC, now ShopHQ, when she came on JTV as the rep for its Stratify line. But that stint ended.

We wish Floyd luck, we liked her on SHopHQ.

Shareholders Call For ShopHQ To Can CEO, But It Says No, No, No

October 31, 2013

ShopHQ CEO Keith Stewart had a bad day Wednesday.

That’s what happens when a dissident shareholder group files a letter with the Securities & Exchange Commission calling for your board to replace you because of your skunky performance. In fact, those stockholders want you gone so badly that they offer to invest $25 million in the company once you are gone.

The shareholders, Clinton Group Inc., own 5 percent of ShopHQ, whose corporate name is ValueVision Media Inc. Clinton Group sent a letter to ShopHQ Chairman Randy Ronald blasting Stewart’s performance of head of the home shopping network.

Here is the full text of the letter, which is a real scorcher in regard to Stewart.

The letter initially complimented for its wide cable and satellite distribution. That was the good news. Then came the bad news from the shareholders.

Despite cable and satellite distribution that is nearly as good as that of HSN, the Company’s enterprise value is about one-tenth that of HSN.

We do not believe the asset is the problem.

Instead, as we have said, we believe that the Company has exploited that asset poorly and has dramatically under-performed its direct rivals, to say nothing of the Company’s potential. When Keith Stewart, the Company’s Chief Executive Officer, joined the Company, he declared that he was “going to change” the Company’s “business model” and its “poor execution.” Neither has happened.

Instead, Mr. Stewart missed nearly every long-term projection and metric he offered during his tenure. As we noted, for example, his publicly stated goal was to create a company with more than $1 billion in revenue with 8-12% EBITDA margins by now. He missed both targets by a country mile.

In the meantime, as we have discussed with you, we believe the Company has fallen further behind its competitors in terms of market share (of both revenue and gross profit dollars) and has failed to return to pre-recession levels of revenue, unlike most retailers, eCommerce companies and both of its home shopping network rivals.

This performance gap has been caused, in our view, by a failure to innovate and differentiate the Company from its peers and repeated failures to hit customer count, penetration rate, distribution cost, operating expense and profit targets over the past four years.

Mr. Stewart and his management team, many of whom we understand work from home, 1000 miles or more from the Company’s headquarters at least two days per week, have in our view abjectly failed to build significant proprietary brands, expand product assortments sufficiently, diversify the program schedule, optimize the product mix and retain key successful vendors.

Recently, the Company – which refers to itself as a “multi-channel retailer” – was ranked dead last among such companies for its mobile website.

Ouch! And we thought our bosses were tough.

But the beat went on. Here are more excerpts from the letter:

Since January 2010 when Mr. Stewart declared that “executed correctly, the [home-shopping business] is the most profitable form of retailing,” the Company has lost $100 million and has reported just a single profitable quarter.

HSN, during that same period, has earned $400 million. And although Mr. Stewart proclaimed that he “fully expect[ed] to double our business over [a] three-to-five year period,” in March 2010, the three-year growth has turned out to be just 11%.

Mr. Stewart has a record of overpromising and under-delivering. On nine separate occasions since 2009, as we indicated during our presentation to you, Mr. Stewart has stood before shareholders and proclaimed the “turnaround” of the Company was well underway or complete.* Sadly, for shareholders, the stock has underperformed the Russell 2000 and HSN since every one of those nine declarations.

That is not to say that Mr. Stewart has not done some good and important work for the Company. The Company was in bad shape when Mr. Stewart arrived and he rightly gets credit for keeping ValueVision afloat. But he has not hit his own targets, optimized the operations or maximized the returns to shareholders. And now, he has no discernable strategy to lift the Company from its distant, third-place (and shrinking) market position.

Accordingly, as we have said to you, we believe the Board should replace Mr. Stewart to enhance operational performance and to pursue a new strategic path. We advocate this not because we are ungrateful to Mr. Stewart for his past stewardship of the Company, but rather because gratefulness has no place in picking the future leader of ValueVision.

The Board’s obligation, it seems to us, is to ensure the Company has the right leader for the future: a leader with entrepreneurial energy; strategic vision; a track record of operational excellence and exceptional performance; and credibility with investors, vendors and employees. We do not believe that person is Mr. Stewart.

The Clinton Group apparently has someone in mind to replace Stewart. Damn, who is it?

From the letter again:

We also are in a position to recommend to the Board several experienced executives with deep, relevant domain expertise and impeccable reputations to serve as Board members to augment the existing Board.

These individuals bring expertise in areas as critical as merchandising, marketing, television production and entertainment, eCommerce and finance. Several of them are iconic leaders in the convergence of media, eCommerce and entertainment and several are well known to the Company’s other shareholders.

That said, with the existing Board’s approval and subject to the completion of due diligence, we would be prepared to put our capital where our mouth is. We would be pleased to make a fresh, primary, minority investment in the Company of at least $25 million at a substantial premium to the stock price if the Board would accept our recommendation and replace Mr. Stewart and upgrade the Board significantly.

ShopHQ shot back later in the day, and here is most of its response:

We are disappointed that Clinton has decided to publish its letter, especially in light of our continuing dialogue. ValueVision has a long record of engaging with shareholders, and members of the Company’s Boar of Directors and management team have engaged in numerous discussions with Clinton since early September, when Clinton first contacted ValueVision.

During the course of these discussions, the Board made clear that it fully supports ValueVision’s management team and its successfulexecution of the Company’s strategy of building sustained growth through customer engagement. Importantly, the Board and management team are confident about the future trajectory of the business.

Since the appointment of Keith Stewart as CEO in January 2009, substantial shareholder value has been created, as demonstrated by an over 940% increase in ValueVision’s share price, from $0.52 to $5.42 as
of yesterday’s market close, as a result of the successful implementation of the Company’s turnaround strategy.

During the same time period, the Russell 2000 Index increased by approximately 150%. ValueVision’s management team, working closely with the Board of Directors, has streamlined operations, improved the quality of the Company’s TV distribution footprint and significantly enhanced the stability and flexibility of its balance sheet, resulting in stronger financial performance.

In addition, ValueVision’s diversification of merchandise and investment in customer centric programs has resulted in an 11% increase in rolling 12 month customer counts and a 10% increase in year to date sales, as of the second quarter of 2013.

Clinton has failed to recognize or acknowledge that the major elements of ValueVision’s turnaround have been addressed and that the Company has delivered improved performance in a number of important financial and operating metrics. Moreover, Clinton has failed to provide any concrete suggestions or recommendations to improve ValueVision’s business and strategy going forward.

ValueVision’s Board and management team remain committed to enhancing value for all shareholders and welcome input from shareholders toward that goal. We will take the time necessary to thoroughly evaluate the Clinton letter while continuing to focus on the successful execution of ValueVision’s business plan to enhance our operating and financial performance.

So there, Clinton Group!

Dissident Shareholders Call For Ouster Of ShopHQ CEO

October 31, 2013

Pardon our language, but the shit really hit the fan at ShopHQ today.

A dissident shareholder group called for ShopHQ CEO Keith Stewart to step down, and offered to invest $25 million in the No. 3 home shopping network if it dumps the honcho.

We’ll do a full blog on this shortly, just wanted to give you a heads-up.

ShopNBC Host Dave King Exits Home Shopping Net For Cali

September 3, 2013

ShopNBC host, and QVC veteran, Dave King is exiting the Minnesota-based home shopping network.

We’re not sure on all the B-roll, but we think King was traveling back and forth from the No. 3 home shopping network to Cali a lot to pursue his acting career. He is now going to try acting full-time.

ShopNBC host Dave King is leaving to do his acting thang. Here he is with girlfriend Jenny Repko.

ShopNBC host Dave King is leaving to do his acting thang. Here he is with girlfriend Jenny Repko.

It looks like he is moving to California permanently. His real-life leading lady is QVC vet Jenny Repko.

On Facebook Monday, King posted a picture of his now-empty place in Minnesota.

“Last day in Minnie…. Closed up Shop this weekend. Last shift tonight at midnight… But I’ll be back as a guest from time to time…. Totally lovin’ the acting life! More on that to come… Stay tuned – literally!!” he wrote.

Good luck in Cali, Dave.

Did ShopNBC’s Chuck Clemency Make Black Spinel A Stone Star?

August 26, 2013

Are we crazy? Wait a minute, let’s rephrase that.

In Facebook ShopNBC/ShopHQ jewelry vendor Chuck Clemency last week took credit for bringing black spinel into the market and making it a popular gem.

Jersey boy Clemency made the comments in response to No. 1 home shopping network QVC for the first time ever offering a Today’s Special Value in that black spinel, hoop earrings. (That show was hosted by QVC pretty boy Rick Domeier, who repeatedly made reference to “the Facebook.” No, no, no “the,” Rick.)

Chuck Clemency, right, and fellow ShopNBC vendor Michael V.

Chuck Clemency, right, and fellow ShopNBC vendor Michael V.

Here is what Clemency posted:

“I’m watching the ‘Q’ and they have a ‘Today’s Special Value,’ an inside-outside Black Spinel hoop. I just heard the host say it’s the stone of the year. Wow!! They are selling 1″&11/2″ Big Daddy’s their not. I want to thank all of my friends who shop with me on Shopnbc for making this the gemstone it is today!”

The Big Daddy’s Clemency was referring to where his own huge black spinel hoops.

Now here is where us being crazy comes in. We’ve seen more black spinel in the past year on Jewelry Television than any other home shopping network, at terrific prices. We love the stone and bought several JTV necklaces in it.

We don’t remember it having much prominence on ShopNBC or with Clemency until this year, long after JTV was offering a wide variety of black spinel baubles.

What do you folks remember? Does Chuck deserves props for making black spinel a hot rock, or not?

ShopNBC, i.e. ShopHQ, Posts 10 Percent Sales Jump, To $149 Million

August 22, 2013

ShopNBC, or should we say ShopHQ, had a strong second quarter, seeing net sales jump 10 percent to $149 million, the home shopping network reported Wednesday.

The revenue growth was driven primarily by strong results in the fashion & accessories and home & consumer electronics categories, the network said.

QVC has already reported that it had a 3 percent increase in revenue, to $1.3 billion, in the second quarter. HSN’s net sales rose 5 percent, to $526.2 million.

“Second-quarter results showed strong top line growth and our fifth consecutive quarter of positive Adjusted EBITDA,” ShopHQ Keith Stewart said in a canned statement. “We continued to make progress in broadening our product offerings as well as accelerated new and retained customer growth. Our rebranding to ShopHQ, your shopping headquarters, is progressing well and our customers are responding positively.”

Adjusted EBITDA improved to $4 million in the quarter versus $1 million in the year-ago period, reflecting higher sales and lower TV distribution costs.

The network, AKA ValueVision Media, has also diminished some of its red ink, reporting a net loss of $1 million compared to a net loss of $4 million a yea ago.

Year to date, ShopHQ posted net sales up 10 percent to $300 million, adjusted EBITDA of $10 million, and net income of $200,000.

Total customers purchasing over the last 12 months rose 11 percent to 1.2 million, reflecting a broader mix of merchandise at lower average price points, improved customer experience, and the benefits of expanded TV distribution.

The size of the total customer base that purchased during the second quarter increased 22 percent versus the same period last year.

Net shipped units rose 31 percent to 1.6 million, reflecting continued diversification of the network’s merchandise mix and a 19 percent decline in the average price point.

Internet-sales penetration remained strong at 45 percent. Mobile net sales grew 56 percent, increasing to 23 percent of Internet sales compared to 16 percent in the year-ago period.

“Our balance sheet condition remains strong,” ShopHQ Chief Financial Officer William McGrath said.

“We ended the second quarter with a cash balance, including restricted cash, of $35 million. Major cash expenditures in the quarter included the final payment under our trademark license agreement with NBCUniversal of $2.8 million as well as $2.5 million in capital expenditures. ValueVision continues to maintain $12 million in undrawn availability under its $50 million credit facility with PNC. This availability further strengthens our balance sheet condition.”

ShopHQ’s Diamond Day Sparkles With Dallas Prince Hubby

August 10, 2013

ShopHQ, formerly ShopNBC, is holding a Diamond Day event today, and it’s worth checking out.

Getting off the air right now, but we believe he’ll be back later, is jewelry vendor Dallas Prince’s hubbie. Vincent Ciurluini is peddling some pretty pieces, including a Celtic-style white and blue diamond cross that just sold out.

Vincent Ciurluini on Diamond Day

Vincent Ciurluini on Diamond Day

All the ShopHQ vendors are wearing tuxes, including Chuck Clemency.

Check it out.

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.


TELEPHONE: 866-277-1184; Passcode: 95412533

Sajen Silver, Honora And Michael Anthony Fall Under Warren Buffett’s Wing

July 31, 2013

It appears that a number of home shopping network vendors — Sajen Silver, Honora and Michael Anthony — are now either owned or designing for Richline Group Inc., which is a unit of Berkshire Hathaway Co.

Berkshire’s chairman, by the way, is master investor Warren Buffett. Richline Group makes and markets fine jewelry.

We were checking the website for Sajen Silver, which has been owned by Marianna and Richard Jacobs, and its homepage said that the Jacobs are now designing jewelry for the Richline Group. The Jacobs are former ShopNBC vendors who are now on HSN.

Marianna and Richard Jacobs, of Sajen Silver, are now designing for Richline Group

Marianna and Richard Jacobs, of Sajen Silver, are now designing for Richline Group

We went to the Richline Group site, and found that its companies include Michael Anthony, the HSN vendor whose specialty is rope gold chains.

There was also a press release, dated May 30, that said the Richline Group was acquiring freshwater pearl purveyor Honora, a QVC vendor. Honora President and CEO Joel Schechter is a frequent guest on QVC. That deal is supposed to close this month, July. The purchase price wasn’t disclosed.

We’re assuming that formerly family-owned companies like Michael Anthony and Honora need the financial backing that the Richline Group can supply in order to grow and expand.

Here’s part of the Honora press release:

Click to access Honora-Richline%2020130528.pdf

For over 60 years of being family owned and operated, HONORA has stood for value and quality in the jewelry industry, and is now known as the premier freshwater cultured pearl brand in the USA.

Dennis Ulrich, CEO of Richline Group, said that “CEO, Joel Schechter and President, Ralph Rossini have created and managed a unique, branded entity that has a great product line, talented people and long-term relationships with its clients.”

Honora's Joel Schechter

Honora’s Joel Schechter

Joel Schechter commented, “We are tremendously excited about our future as a member of the Richline Group, and look forward to leveraging their tremendous strengths as we continue growing the HONORA
brand to consumers.

HONORA’s president, Ralph Rossini, said “The entire HONORA team takes great pride in the brand we have
built over the years. We look forward to utilizing Richline’s expertise and vast resources to expand our brand and strategic opportunities.”

In the new corporate structure, Mr. Schechter and Mr. Rossini will remain to run the company as a standalone brand within the Richline Brands division of the Berkshire Hathaway Company.

Dave Meleski, Richline Group’s President, stated “a key goal of this acquisition is the utilization of our financial support and collaboration to fully champion HONORA, as a brand, for domestic and International growth. HONORA expands our product assortment positioning as a dominate player in the pearl jewelry category.”