ShopNBC enjoys 'another consecutive' quarter of improving results in 2Q
Net sales/revenues rose 5.7% to $126.2 MM
Cecile Corral -- Home Textiles Today, 8/18/2010 3:19:45 PM
Minneapolis -During its second quarter, multi-media retailer ShopNBC saw several signs that its business is improving, as net sales/revenues rose 5.7% to $126.2 million versus $119.3 million in last year's same period and its e-commerce sales penetration jumped by 860 basis points to represented 39.4% of total company sales in the quarter.
Also better that before was net loss, which in the second quarter declined to $7.7 million, compared to a net loss of $8.2 million for the same quarter last year.
Gross profit increased 13% to $47.2 million and gross profit margin improved 260 basis points to 37.4% vs. 34.8% last year, largely driven by merchandise margin rate improvements across several key categories.
Return rates for the quarter declined to 20.6% versus 21.8% in the year-ago quarter, "reflected improvements in overall customer satisfaction and the benefit of strategic pricing changes," the company said.
And customer trends "continued to improve," the company said, with new and active customers increasing 39.5% and 26.5%, respectively, on a 12-month rolling basis versus the same period last year.
"We are pleased with our second quarter progress, reflecting another consecutive quarter of overall improved performance," said Keith Stewart, ceo of ShopNBC, which is owned and operated by ValueVision Media. "Positive customer activity trends and strong gross margin rates, along with disciplined execution in merchandising and financial planning, helped drive the business on the top and bottom line."
As part of its on-going strategic initiatives, the company said it has "further lowered" its net average selling price to $97 from $112 in the year-ago quarter, while increasing net shipped units by 22%.
"Going forward, we recognize there is still much work to be done," Stewart added. "We continue to prudently manage our working capital while focusing on increasing the top line through improved merchandising strategies, aligning price points with consumer demand, and refining our customer outreach initiatives during the second half of the year."
In its earnings release, the company said Kris Kulesza, svp of merchandising, is leaving ShopNBC effective August 20 to pursue other interests. The company currently does not plan to fill this position. Instead, it will spread the responsibilities across its current team.
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