National Jeweler Network

Financial Reporting

Q4 sales climb for ShopHQ on lower prices

March 06, 2014

Minneapolis--Fourth quarter sales were up 17 percent for ShopHQ as the multimedia retailer enticed customers to buy by offering more merchandise at lower price points.

According to results released Wednesday by parent company ValueVision Media Inc., sales increased from $165 million to $193 million year-over-year in the fourth quarter for Shop HQ (formerly ShopNBC.) 

They were driven by strong performance in the home and consumer electronics, fashion and accessories, and beauty, health and fitness categories.

Gross profit rose during the period ended Feb. 1, increasing 14 percent, but was down as a percentage of sales, decreasing from 33 percent in the prior-year period to 32 percent. 

The size of the total purchasing customer base during the fourth quarter was up 30 percent year-over-year, and net shipped units increased by 44 percent to a record high 2.4 million, reflecting a broader merchandise mix and a 20 percent decline in the average price point from $92 to $74.

“Our Q4 ’13 performance marked our seventh consecutive quarter of sales growth and positive adjusted EBITDA. Our continued diversification of product mix resulted in strong sales growth across a much broader customer base,” said ValueVision CEO Keith Stewart.

“We expanded our product assortment, improved our channel positions and continued to focus on the customer experience. These efforts drove record new customer counts in the quarter. With our rebranding to ShopHQ complete and more customers shopping with us than ever before, we believe we are well positioned for fiscal 2014.”

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For the full year, net sales grew 12 percent to $640 million. 

Net loss in 2013 dropped sharply, totaling $400,000 as compared with an adjusted net loss of $16 million in 2012. Total customers purchasing for the 12-month period were up 20 percent to a record 1.4 million.