Posts Tagged ‘Ted Gibson’

ShopNBC Reports 4 Percent Revenue Drop In Third Quarter, But The Home Shopping Network Cuts Losses In Half

November 18, 2009

New ShopNBC vendor Suzanne Somers

ShopNBC saw sales slip 4 percent in the third quarter as it shifted its product mix and lowered its average selling price, but the beleaguered No. 3 home shopping network substantially cut some of its losses, the company reported Wednesday.

Third-quarter revenue was $119.4 million versus $124.8 million in 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.

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.

Customer trends continued to improve with new and active customers up a record 118 percent and 64 percent, respectively, in the third quarter.

Increased customer demand in the quarter led to a 4 percent growth in net orders over last year, the company’s first increase in seven quarters. This is an acceleration of the company’s first half performance of new and active customer growth of 60 percent and 29 percent, respectively.

Return rates for the quarter were 21.9 percent versus 29.2 percent in the year-ago quarter, reflecting improvements in delivery time, customer service, product quality, and lower price points. The customer service contact rate decreased 24 percent in the quarter.

ShopNBC’s Gross profit margin was 33.2 percent, 130 basis points lower compared to last year, driven primarily by increased promotional activity. These promotions contributed to the significant new customer growth the company achieved in the quarter.

ShopNBC noted that it had added a record 122 new vendors to the new and existing merchandise categories of home, fashion, beauty and jewelry.

ShopNBC CEO Keith Stewart

The company launched 58 new show titles, product categories and brands in the quarter, such as Suzanne Somers, Esprit Outerwear, Laundry by Shelli Segal, Sensual Solutions by Dr. Robert Rey, Sensa Weight-Loss System, Brilliante Purely Platinum, the Culinary Institute of America and Griot’s Auto Care.

And a record 103 new guests, 90 of those being experts in their field, were added to the network’s talent ranks, including the hottest celebrity hair stylist Ted Gibson, chef Marcus Samuelson and shoe expert Meghan Cleary.

Operating expenses were trimmed $12 million year-over-year or 20 percent in the quarter. This decrease was driven by broad-based reductions in the company’s cost structure, including lower cable and satellite fees, lower headcount versus the prior-year period, and a significant decline in transactional costs in the areas of order capture, customer service, credit and fulfillment.

In the quarter, ShopNBC successfully concluded all of its carriage agreements that were up for renewal in the last year while preserving 100 percent of its distribution footprint of 73 million homes, leading to a cost savings of about $24 million in 2009 and improved channel positions in many markets.

“Merchandising efforts to unlock our customer growth potential showed real signs of progress in the third quarter, as we build new businesses in strategic product categories,” ShopNBC president and CEO Keith Stewart said in a prepared statement.

“Record gains were made in new and active customer counts,” he said. “Net shipped units were at record levels. E-commerce is proving to be a powerful complement for additional growth. With a focus on delivering a premium shopping experience across our multichannel platform of TV and the Web, the customer is reacting strongly to our initiatives.”

Stewart added, “Year-to-date EBITDA, as adjusted, is $18.2 million better than last year. We are highly focused on delivering the high expectations that have grown during the turnaround of ShopNBC. I remain confident about our fourth quarter plans.”

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ShopNBC ‘Extends’ Its Product Line With Clip-Ins From Hair Stylist Ted Gibson

October 27, 2009

Third-ranked home shopping network ShopNBC has been struggling, and its strategy now is to diversify and not depend so much on jewelry sales. As a result, it is becoming more and more like QVC and HSN every day. It’s no big surprise, since ShopNBC is now run by former QVC executives.

Tuesday’s ShopNBC Top Value of the Day are clip-in hair extensions from hair stylist Ted Gibson, at $100 a pop.

Does any of that sound familiar? Well, QVC just rolled out a line of hair extensions, Hairdo by Jessica Simpson & Ken Paves, from the blonde singer’s hair stylist Paves.

That Paves/Simpson line used to be on HSN, but switched over to QVC. We could swear that TV chef Rachael Ray was wearing hair extensions of some sort — maybe from Paves — when she appeared on QVC last week, despite her claim she was growing out her hair. Last time we saw her, her hair was chin-length, and it was down her shoulders when she appeared on QVC.

Despite the exit of Paves and Simpson. HSN still sells hair extensions from Toni Bratton.

The Gibson hair extensions are all part of ShopNBC’s first beauty and style week.

ShopNBC Launches First Beauty And Fashion Week Saturday, Hot Label Laundry By Shelli Segal On Board

October 23, 2009

As part of its continuing effort to diversify, ShopNBC is kicking off its first-ever Beauty & Style Week event Saturday night.

The event will feature ShopNBC’s largest number of beauty and fashion launches ever in one week.

“We are thrilled to present this chocked-full, week-long Beauty & Style event to our viewers,” ShopNBC’s chief merchant Msaid Kris Kulesza said in a prepared statement. “Some of the most sought-after brands in the industry will be featuring their new beauty and fashion must-haves as well as great holiday gifts on ShopNBC.”

Kulesza said, “From the likes of the hottest celebrity hair stylist Ted Gibson Beauty to global brand Laundry by Shelli Segal, from Dr. Robert Rey aka ‘Dr. 90210’ to America’s favorite shoe expert Miss Meghan, viewers will discover a wide array of wonderful finds — items we affectionately refer to as ‘ShopFINDS.’ Those who tune in will also be titillated about the prospects of learning from these expert guests how to instantly update their look in a way that easily works for their lifestyle.”

As part of the event Rey, known as E! Entertainment Television’s “Dr. 90210” and an in-demand cosmetic and reconstructive surgeon in Beverly Hills, will be introducing his new skincare line, Sensual Solutions, on ShopNBC. Through his products, Dr. Rey offers a non-invasive alternative to plastic surgery. Rey will be on air Sunday.

Celebrity hairstylist Gibson will debut his hair care line on ShopNBC Oct. 27. Based on Wild Orchid extract as its key ingredient, his product line will be featured during self-titled show hours throughout the day.

Following a strong reception by ShopNBC viewers at its launch in late August 2009, Sensa Weight-Loss System will appear this Sunday during eight self-titled show hours to educate viewers on how to use their simple approach to weight loss.

Also returning to ShopNBC is Vapour Organic Beauty. Eric Sakas, beauty expert and co-founder, will be the on-air guest this next Tuesday.

Beauty & Style Week is not only premiering new brands, but new shows. “Beauty Confidential” will make its debut next Tuesday. It will feature nothing but beauty insiders themselves, like Gibson, who will share their first hand knowledge with viewers.

Shoe expert Meghan Cleary will make her world-wide debut on ShopNBC next Wednesday. Meghan will premiere her new collection exclusively at ShopNBC during “Beauty & Style Week Party” at 9 pm ET.

The hot fashion brand Laundry by Shelli Segal will premiere next Thursday during shows titled after the line.

And the style program “Geneology Fashion DNA” will debut during a show titled after the line Oct. 30. Only at ShopNBC, this modern lifestyle apparel collection offers contemporary and casual looks with attitude that are ready for workday to weekend.

ShopNBC will also introduce Hope Brick — founder of RADARinsights and fashion industry veteran — as trend expert for the shopping network. She will appear in style-focused segments throughout Beauty & Style Week that educate viewers about the latest trends while providing fashion advice that translates the hottest styles into any wardrobe.