ShopNBC Narrows Loss in Q2
-- Home Textiles Today, 9/7/2009 12:00:00 AM
Better margins at ShopNBC could not offset lower price points during the second quarter, resulting in a net loss of $8.3 million. However, that was an improvement over the $15.7 million loss the electronic retailer posted in the year-ago period.
Sales for the quarter ended Aug. 1 fell 16% to $119.3 million, largely due to a deliberate reduction of the company's average selling price. That price was lowered to $112 — 42% off the year-ago average of $194.
With a higher percentage of product sold at full margin and fewer electronics in the merchandise mix, gross margin increased to 34.8% from 31.5% a year ago.
In September, the company will launch a full lifestyle assortment around actress Suzanne Somers, including home, jewelry, fashion and accessories, food, vitamin supplements, and beauty/personal care.
"The second quarter was another solid foundation-building period for the company in its turnaround," said Keith Stewart, ShopNBC's president and ceo. "We are buying the right merchandise and building up our reorder business. With improved inventory levels, higher margins and lower price points, positive business metrics continued to take form. The customer is responding to our new merchandise strategy and to our new expert guests, all of which can be seen in the positive trends in new and active customer counts."
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