While it no longer breaks out web sales, TV and web retailer ValueVision Media Inc., which owns and operates ShopNBC.com, says its e-commerce performance is improving.
Even though total sales in the second quarter declined 15.9% to $119.3 million from $141.9 million, ValueVision, No. 87 in the Internet Retailer Top 500 Guide, in its Q2 earnings release says its online conversion rate is up 36% from one year ago. “The company's Internet business is attracting new and returning customers at an increasing rate as online product assortment expands,” says ValueVision CEO Keith Stewart. “Use of live chat for sales assistance and enhanced e-mail retention programs allowed for stronger visitor engagement, customer education and overall site penetration. Going forward, the company will optimize ShopNBC.com with the next phase of its mobile strategy, expand its social networking initiatives and improve its natural search presence in key merchandise categories.”
In the second quarter, ValueVision also added 106 new vendors to its TV and online products inventory and added celebrity Suzanne Somers, who will participate in a number of appearances online and on TV. “Suzanne Somers will bring the full range of her product line and loyal fan base to ShopNBC's on-air, online and print platforms, which will span the categories of home, jewelry, fashion and accessories, food, vitamin supplements and beauty and personal care,” says Stewart.
Despite new web initiatives, ValueVision still is working to improve its financial performance, although the company narrowed its net loss in the second quarter 47.1% to $8.3 million from $15.7 million. For the first six months:
- Sales decreased 15.1% to $253.1 million from $298.2 million.
- Net loss narrowed year over year to $20.2 million from $34.8 million.
“There are critical building blocks being laid and they are very good signs for this business,” says Stewart. “I am highly encouraged about the progress made during the first half of the year. Year-to-date EBITDA, as adjusted, is $10.5 million better than last year. These steps are a necessary precursor to improved sales and profits." EBITDA stands for earnings before interest, taxes, depreciation and amortization.
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