Posts Tagged ‘ValueVision Media’

ShopHQ Sees 7 Percent Sales Gain In Third Quarter

November 19, 2014

In addition to unveiling its name change Tuesday, ShopHQ also reported its third-quarter earnings, posting a 7 percent increase in net sales, to $157.1 million.

The year-over-year revenue gain was due to strong sales in the fashion, accessories, beauty, health and fitness categories, the network — soon to be called Ervine Live — said.

Mark Bozek

Mark Bozek

Adjusted net income rose to $1.6 million, or three cents a share, compared with an adjusted net loss of $900,000 a year ago.

“I am pleased with our third-quarter results,” ShopHQ CEO Mark Bozek said in a canned statement. “We achieved improvements in operating metrics across the P&L, and we are excited for the holiday season. I am also looking forward to accelerating our transition to a true digital commerce company and implementing our new, unified strategy, which should expand our reach and further drive long-term growth.”

Chief Financial Officer William McGrath also chimed in.

“We ended the quarter with $26 million in cash and restricted cash,” he said. “During the quarter, the company had borrowings under our PNC credit facility of around $5 million to fund capital expenditures incurred for our Bowling Green distribution center expansion.”

‘Dysfunctional’ ShopHQ Wins Round Against Dissident Shareholders

February 5, 2014

After many volleys back and forth, it looks like ShopHQ has won a battle with dissident shareholders, who accused the company of having “a dysfunctional corporate culture.” But the war isn’t over. It’s just been delayed until June.

ShopHQ, corporate name ValueVision Media, has been under assault by The Clinton Group, shareholders who want to oust the home shopping channel’s current management, including CEO Keith Stewart. The stockholder group alleges that ShopHQ has been under-performing other nets such as HSN, and needs new leadersship.

The Clinton Group had demanded that a special shareholder meeting be held in February to have a vote to replace several of ShopHQ’s board members. ShopHQ had set that meeting for March 14. But on Tuesday, a cascade of events happened.

First, The Clinton Group in a filing with the Securities and Exchange Commission charged that ShopHQ unlawfully refused to hold the special meeting in a timely manner.

Here’s the blow-by-blow on that:

http://hsprod.investis.com/site/irwizard/vvtv/ir.jsp?page=sec_item_new&ipage=9358290&DSEQ=&SEQ=&SQDESC=

http://tcbmag.com/News/Recent-News/2014/February/Activist-Investor-Calls-Foul,-Wont-Attend-ValueVi

The bottom line was that the dissidents said they were not going to attend the special March meeting, and would instead bring up their concerns and proposals at ShopHQ’s annual shareholder meeting in June.

But in a letter to ShopHQ, The Clinton got in some pretty good punches.

We are immensely grateful for all the support we have received from our fellow shareholders and from current and former employees and vendors.

There is a clear pattern that emerges from the dozens of communications we have had with this latter group: the Company is saddled with a dysfunctional corporate culture and management structure, replete with bullying, arbitrary decision making, a lack of vision, an inability to plan, coarse language, internal dissension, high turnover and management cliques.

While the picture painted by those intimately familiar with the Company’s operation is deeply troubling, it also emboldens our view that the wounds shareholders have suffered (e.g. just two profitable quarters since Mr. Stewart took the helm 19 quarters ago) have been inflicted by poor management (and even worse strategic decision making), which can be rectified with the appropriate change in personnel.

Later on Tuesday, ShopHQ cancelled the special March meeting, and issued a press release on the move.

http://hsprod.investis.com/site/irwizard/vvtv/ir.jsp?page=sec_item_new&ipage=9361461&DSEQ=2&SEQ=&SQDESC=SECTION_EXHIBIT&exp=&subsid=41

If you are wondering what The Clinton Group means when it refers to “bullying,” perhaps it relates to an incident that someone posted about on one of our blogs. We weren’t there. We can’t prove it. But here is what the poster wrote.

While I hesitate to name names of employees (for fear of retribution) I will give an example of this team’s unprofessional behavior.

At a company meeting one of the employees attending had just returned from having a stroke. He was still recovering and had to wear dark glasses. He was singled out by Keith Stewart in the presence of his co-workers with the words “Who do you think you are? F—— Stevie Wonder?”

This is only one example – there are others. It seems the “F” word with this executive team is in constant use. It is unfortunate that it is often used to disparage employees.

Not a pretty picture.

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.

http://hsprod.investis.com/site/irwizard/vvtv/ir.jsp?page=sec_item_new&ipage=9196587&DSEQ=2&SEQ=&SQDESC=SECTION_EXHIBIT&exp=&subsid=41

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!

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.”

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

ShopNBC CEO Keith Stewart’s Base Salary Alone Is A Tidy $650,000

April 3, 2012

What the hell is going on over at ValueVision Media Inc., better known as ShopNBC?

ShopNBC made several eye-popping filings with the Securities and Exchange Commission (SEC) Monday.

But here’s bottom line: ShopNBC CEO Keith Stewart’s base salary is $650,000. That would buy a lot of Chuck Clemency jewelry.

The first SEC filing was a copy of a rather ominous letter dated Jan. 26 from the SEC to ShopNBC CEO Keith Stewart, referring to information in a proxy statement.

“Please revise your disclosure to describe the factors that led to the material increase in Mr. Stewart’s compensation in 2010 versus 2009. We note your disclosure on page 22 under ‘Base Salary’ that Mr. Stewart elected to receive restricted stock in lieu of cash for a large portion of his base compensation in fiscal 2009, but this does not appear to
explain the material increase in Mr. Stewart’s compensation,” the SEC said in its letter.

In a Feb. 9 letter, ShopNBC responded to the SEC’s questions regarding Stewart’s salary.

Mr. Stewart was hired by the Company as President and Chief Operating Officer on August 27, 2008. In lieu of his $500,000 annual base salary for his first year of employment, Mr. Stewart elected to receive $500,000 worth of restricted stock, which was awarded in 2008. On January 29, 2009, Mr. Stewart was promoted to Chief Executive Officer. In connection with this promotion, his annual base salary was increased to $650,000 and he was to be awarded 500,000 options to purchase common stock.

Since Mr. Stewart had previously agreed to have $500,000 of compensation payable from August 27, 2008 through August 27, 2009 paid in restricted stock that was granted in 2008, Mr. Stewart effectively received $215,068 of base salary as restricted stock in 2008 and $284,932 of his 2009 base salary as restricted stock, all of which was received in 2008 and reported in the table as received in 2008.

In 2009, Mr. Stewart received an additional $361,539 of cash as base salary bringing his effective 2009 annualized base salary to $650,000, the same as his 2010 base salary.

In the Company’s definitive proxy statement for its 2012 annual meeting of shareholders, the Company will include the $284,932 of restricted stock received in 2008 that constituted Mr. Stewart’s 2009 base salary under the salary column for 2009 compensation bringing his total salary for 2009 to $646,471. The Company will footnote this disclosure to reflect that $284,942 of the 2009 salary was received at the election of Mr. Stewart as restricted stock that was issued in 2008.

As mentioned above, pursuant to his 2009 employment agreement with the Company entered into in connection with his promotion to Chief Executive Officer, Mr. Stewart was entitled to receive a grant of options to purchase 500,000 shares of common stock at the same time as stock options were granted to executive officers of the Company generally.

These options were not granted in 2009. In 2010, Mr. Stewart’s employment agreement was amended so that he was entitled to receive this grant of options to purchase 500,000 shares of common stock if he remained employed by the Company through the date of the earliest of the following events that occurred during the 2010 fiscal year: (1) stock options are granted generally to other executive officers of the Company; (2) the public announcement of the results for a fiscal quarter in which the Company reported a positive adjusted EBITDA for such fiscal quarter or (3) an “Event” as defined under the Company’s 2001 Omnibus Stock Plan.

On November 18, 2010, the Company publicly announced $0.6 million of adjusted EBITDA for its fiscal third quarter ended October 30, 2010 triggering the Company’s obligation to grant Mr. Stewart these 500,000 options, which options had a grant date fair value of $1,083,363 under FASB ASC Topic 718. This was a significant milestone for the Company and reflected the Company’s first quarter of positive adjusted EBITDA since the fourth quarter of fiscal 2007. These options, which were to be granted in 2009, were the sole difference between Mr. Stewart’s 2010 compensation and 2009 compensation.

In the Company’s definitive proxy statement for its 2012 annual meeting of shareholders, the Company will add the disclosure in the prior paragraph to its Compensation Discussion and Analysis.

Giving Wall Street A Chance To Cool Off? Is Jim Skelton’s Absence Hurting Its Watch Sales? ShopNBC ‘Previews’ Disappointing Third-Quarter Results

November 3, 2011

What the hell?

We haven’t seen this before. ValueVision Media Inc., i.e. ShopNBC, Wednesday “previewed anticipated results of operations for its third quarter ended Oct. 29.”

Looks like it was a bad quarter in Minnesota.

The home shopping network “anticipates” net sales of $135 million, a gain of 2 percent over the prior-year quarter’s $132.3 million.

Third-quarter net sales reflect lower than expected sales in consumer electronics and watches, which offset sales gains in the jewelry, home, health and beauty, and fashion and accessories merchandise categories. Gross profit rose about 6 percent in the third quarter versus last year, reflecting continued improvements achieved in overall gross margin.

We bet Steve Burke, head of ShopMNBC shareholder NBC Universal, will love reading the next statement.

“The Q3 expected revenue growth and its impact on adjusted EBITDA is clearly disappointing,” ShopNBC CEO Keith Stewart said in a canned statement. “Although we achieved solid sales gains across four of six business segments, these gains were largely offset by an unexpected sales decrease of approximately 23 percent in consumer electronics and lower than anticipated sales in watches.”

Is that because ShopNBC shit-canned its watch guru, Jim Skelton?

“Our goal is to build a strong multi-channel electronic retailer that provides sustainable and predictable performance while giving priority to the customer experience,” Keith said. “Over the past two years we have been rebalancing our product assortment and broadening the mix, but unfortunately sales setbacks and quarterly volatility will occur.”

They may occur, but Wall Street doesn’t like them.

“Looking forward, we are focused on nurturing, expanding and diversifying each category segment with exciting new products, programming concepts and cross-platform interactivity that will attract and delight the customer,” Keith said, quite a mouthful. “This focused effort is across all our product categories, with particular emphasis on consumer electronics, where we still have more work to do in broadening our vendor base and product mix.”

But wait, there’s much more from Stewart.

“Our Q3 revenue was also affected by an approximate 12 percent sales decline in our watches category,” he said. “We are disappointed with these results and recognize there is more progress to be made in diversifying the watch vendor base and product assortment. However, we are encouraged by the addition of a dozen new watch brands to this business segment over the past year. Lastly, we expect our four remaining product categories delivered healthy sales gains and good margins during Q3, based on solid product assortments that provide a good base for future growth.”

And more…

“Despite the specific challenges we are actively addressing, we are encouraged by our overall progress across the business and the healthy gross margins we are achieving,” he said. “We have come a long way, with work still to be done. We remain confident in and committed to our business platform and talented team, the execution of our growth strategies and the long-term potential of the business.”

William McGrath, ShopNBC’s chief financial officer, also had his say.

“Our anticipated Q3 adjusted EBITDA results will reflect lower than expected revenue growth as well as higher distribution costs associated with approximately 2 million households added in the quarter,” McGrath’s canned statement said. “Additionally, we improved our channel positioning in existing households in approximately 2.5 million homes. These incremental investments, which we anticipate amounted to approximately $0.8M in Q3 ‘11, are expected to deliver sales benefits to the company over the long term.”

And yet more from McGrath, following in his boss’s footsteps.

“Cash and cash equivalents including restricted cash at end of Q3 totaled $32.7 million versus $42.5 million at the end of Q2 2011, reflecting planned investments in inventories, working capital and capital expenditures in advance of the peak fourth-quarter selling season,” he said.

ShopNBC expects negative adjusted EBITDA in the range of ($0.5 million) to ($0.7 million), compared to adjusted EBITDA of $0.6 million in the year-ago period.

For the trailing 12 months, ShopNBC expects net sales growth of about 9 percent to $590 million and adjusted EBITDA of $11.6 million to $11.8 million, an increase of $18.6 million to $18.8 million.

The No. 3 home shopping network will actually report third quarter results Nov. 16 and will hold a conference call and webcast at 11 a.m.

HSN, ShopNBC To Present At TAG Consumer Conference Later This Month

September 15, 2011

Both HSN and ShopNBC will be participating in the Telsey Advisory Group’s 2nd Annual Fall Consumer Conference later this month.

ValueVision Media, ShopNBC’s parent, will do its presentation Sept. 26 at 1:10 p.m. President Bob Ayd and CFO Bill McGrath will be doing the dog-and-pony show at The Intercontinental Hotel Times Square in New York City.

ShopNBC’s presentation will be broadcast live via audio webcast at 1:10 p.m. and at the same time the presentation will be
available on the Investor Relations section of the Company’s website at http://www.ShopNBC.com/IR.

HSN CEO Mindy Grossman and CFO Judy Schmeling will do their thing at the conference Sept. 28.

ShopNBC Posts 5 Percent Rise In Net Sales In Second Quarter

August 16, 2011

It’s nasty chilly and damp out. We will be up until dawn covering a Montclair Council meeting.

Therefore, this is the best we can do right now on the second-quarter results released Tuesday for ValueVision Media, which we all know does business as ShopNBC. We’ll have to listen to the replay of the analyst conference call.

Most of this is taken directly from the press release.

ShopNBC posted a net sales gain of 4.7 percent in the second quarter, with revenue increasing to $132.1 million from $126.2 million a year ago.

Gross profit rose 8.7 percent from to $51.3 million from $47.2 million, while adjusted EBITDA increased by $3 million, moving from red to black ink.

However, ShopNBC still showed a net loss for the quarter, although it has reduced the red ink. The second-quarter net loss was $4.5 million, versus $7.7 million for the prior year period.

ShopNBC CEO Keith Stewart

“For the fourth consecutive quarter, we posted net sales, gross margin and adjusted EBITDA improvements, including positive adjusted EBITDA,” ShopNBC CEO Keith Stewart said in a canned statement. “I am pleased with the gross margin progress our team continues to make and our ability to be nimble in response to changing consumer preferences. Additionally in Q2, we continued to lead the televised electronic retailing industry in driving sales via the Internet and mobile devices, which were up 23 percent vs. last year.”

CFO William McGrath’s eloquent canned quote was as follows:

“First half 2011 adjusted EBITDA of $4.2 million is the best we have achieved in over five years, and represents a $10.4 million improvement vs. last year. Also during the first six months, gross profit dollars are up double digits and our gross margin rate of 38 percent is a 10-year company record.

Additionally, our national cable and satellite footprint increased by 4 percent vs. last year to approximately 79 million. This powerful mass distribution channel, which is heavily integrated into our Internet and mobile platforms, is a key differentiator of our business and driver of our long-term growth plan.”

Brevity is not McGrath’s strong suit. He also said this:

“We recognize that some variability in quarterly sales performance is to be expected, particularly as we build out our merchandise categories and strengthen our team. During the month of June in Q2, sales and gross profit performance was flat while the months of May and July resulted in 10 percent top line growth and 15% increase in gross profit dollars. Looking ahead, we remain committed to our long-term sales and adjusted EBITDA growth goals.”

ValueVision’s second quarter sales growth was impacted by a temporary mid-quarter shift in consumer demand away from high-ticket, low-margin consumer electronics toward higher margin jewelry and health and beauty products. The shift toward jewelry led to a slight increase in second quarter product returns and lower new customer activity, which are trends normally associated within the jewelry category.

The watch category benefitted from a more diverse product mix and achieved improved productivity per minute with attractive margins, as part of a strategically planned reduction in air-time. Health and beauty sales and margins remained strong in the second quarter, driven by a number of new product launches along with a core base of skincare and beauty tools.

Fashion and accessories achieved growth in sales, margin rate and productivity on the strength of well-received fashion introductions in apparel, handbags and shapewear. Performance in the home category
built on the successes of first quarter product launches, achieving stron second quarter sales in cookware, table top and bedding.

The final canned quote is from ShopNBC President Bob Ayd:

“Overall, we continued to make progress across our product categories in both top line and gross margin rates despite the temporary shift in consumer demand. During the first six months of 2011, our merchandise teams laid a strong foundation with a number of innovative product initiatives that will position us well for the back half of this year. These plans, along with a compelling line-up of high-profile brands, entertaining guests and exciting programming, add to our confidence in growing the business and further driving key operating metrics.”

ShopNBC ended the second quarter with cash and cash equivalents totaling $42.5 million, including $5.0 million in restricted cash and $25 million in long-term debt. As planned, inventory levels rose to $52.7 million as compared to $42.2 million in the first quarter, as the merchandise mix shifted more toward product categories held in the company’s inventory.

ShopNBC To Report Second-Quarter Results Aug. 16

August 4, 2011

ValueVision Media Inc., better known as ShopNBC, will release its second-quarter earnings before the market opens Aug. 16.

Management will host a conference call and webcast that morning at 11 a.m. to review the results. Both the call and webcast are open to the general public.

WEBCAST/REPLAY LINK: http://phx.corporate-ir.net/playerlink.zhtml?c=76332&s=wm&e=4170596

TELEPHONE: 866-543-6403;

Passcode: 88603177