Net sales increased 2% in Q3 to $135 million for ValueVision, which operates as ShopNBC. But that increase was a disappointment, since the restructured company had been aiming for stronger sales.
“As previously reported, lower than expected Q3 net sales and adjusted EBITDA is a disappointing setback in our progress toward rebuilding the business. Third quarter sales were principally impacted by a sales shortfall of 20% in consumer electronics along with a greater than anticipated decline of 13% in sales of watches, which off-set double-digit sales gains and strong margins in our jewelry, home, health and beauty and fashion and accessories categories,” said ValueVision CEO Keith Stewart.
Adjusted EBITDA fell to a negative half million dollars in Q3 from a positive $0.6 million a year earlier.
“We are focused on improving the consumer electronics business with specific action plans underway. This includes recruiting new talent and expanding its merchandising team as well as improving product and brand assortment. The number of new vendors across our other categories continues to grow, as our multichannel retail business presents an attractive sales platform to expand their business and brand visibility. We expect to further reinforce that trend with additional prominent brands, such as Brooks Brothers and Hartmann luggage, that will delight the customer and further differentiate ShopNBC,” said Stewart.