ValueVision Narrows Net Loss
Home & Textiles Today Staff -- Home Textiles Today, December 6, 2013
MINNEAPOLIS - Driven mainly by strength within its growing home segment as well as in consumer electronics, fashion and accessories categories, Value Vision Media Inc. generated a 7% net sales increase to $147 million and a dramatically narrowed net loss.
The multi channel electronic retailer reported a net loss in the third quarter of $1 million, or 2 cents per share, a vast improvement over the year ago period's net loss of $4 million, or 8 cents per share.
Year to date, Value Vision reported a 9% increase in net sales to $447 million, and its net lost shrank to $1 million or 2 cents per share, compared to a net loss of $16 million or 33 cents per share.
Keith Stewart, ceo, said the company achieved these accomplishments amidst its re branding from ShopNBC to "ShopHQ," which he noted is "largely complete."
The company saw a 13% increase in total customers purchasing over the last 12 months to 1.25 million. Value Vision credited the diversification of merchandise at lower price points as well as a product mix shift from the jewelry & watches category to the fashion & accessories and home & consumer electronics categories.
Improvements in customer satisfaction and channel positioning also contributed to customer growth, and the size of the total customer base that purchased during the three months of 13-week quarter increased 20% versus last year's same period.
Net shipped units rose 31% to 1.7 million, reflecting a broader merchandise mix and a 20% decline in the average price point. Internet sales penetration increased 240 basis points to 47%.
Mobile net sales grew 45%, increasing to 22% of internet sales compared to 18% in last year's third quarter.