ShopNBC narrows first-quarter loss, looks to expand merchandise mix

Minneapolis -- ShopNBC narrowed its first-quarter loss to $12 million from $17.6 million a year ago. Gross margin slipped to 31.5% from 32.0% last year, but marked an improvement of 260 basis points over the previous quarter. Sales dropped 14% to $134 million owing to a 26% decrease in average selling price.

During this morning’s first-quarter conference call, Keith Stewart, president and ceo of ShopNBC, said he is confident that the company “is headed in the right direction.” The company has reduced its cost structure by 21% through a reduction in work force and other cost-saving measures, and “costs are well under control,” according to Stewart.

Going forward, the company plans to broaden its vendor base and determine new product categories. ShopNBC plans to increase inventory levels in the higher margin categories of home, fashion, beauty and jewelry. ShopNBC expects margins will improve throughout the year as the shift in merchandise mix occurs. Expanded airtime for more profitable categories is also planned.

In the first quarter, 94 new vendors were added across current and new product categories, and 62 new brands, collections and concepts were launched. There are plans for 90 launches for the second quarter.

The company also redesigned its website and launched the "ShopNBC Anywhere" mobile application during the quarter. The iPhone and iPod touch application is the first of its kind in the TV shopping industry.

 “It’s a whole new ball game at ShopNBC,” said Stewart. He sees a “continued turnaround of [the] business.”

Home & Textiles Today Staff | News & Commentary

 Home Textiles Today is the market-leading brand covering the home and textiles markets, offering a comprehensive package of print and online products. Home & Textiles Today provides industry news, product trends and introductions, exclusive industry research, consumer data, store operations solutions, trade show news and much more.

Featured Video

  • Live From New York: Fashion Comes Across the Pond

    Camera Icon More Videos

Subscribe to
Home & Textiles Today eDaily
Receive the news you need to know about the trends in the industry delivered right to your inbox.


HTT Cover October 2017

See the October 2017 issue of Home & Textiles Today. In this issue, we look at the Top 25 Online Retailers.  H&TT's exclusive annual ranking of the biggest online sellers of home textiles finds that while pure play etailers continue to fly, bricks & clicks are digging into omnichannel. See details!