RAPAPORT... ShopNBC reported that its fourth-quarter revenue rose 7.4 percent to $155.3 million and recorded a loss of $8.8 million for the final quarter of 2009, compared with a net loss of $43.8 million one year ago. The group's fiscal-year sales fell 7 percent to $528 million in 2009 and it posted a net loss of $42 million, compared with a net loss of $97.8 million in the previous year.
Watches, coins and collectibles, which represented 33 percent of the product mix, replaced jewelry as ShopNBC's top-selling category in the fourth quarter. Jewelry accounted for 20 percent of the product mix during the quarter, down from 29 percent one year ago. This trend was evident throughout ShopNBC's fiscal year, with jewelry sales accounting for 23 percent of the product mix, compared with 36 percent in the previous fiscal year.
For the fourth quarter in particular, ShopNBC reported that its total return rates dropped to 19 percent from 26 percent. For the full year, the retailer's return rates were 21 percent, down from 31 percent in the previous year. The number of net shipped units increased by 54 percent in the fourth quarter and rose 47 percent for the full year.
"The fourth quarter proved to be another positive step toward achieving sustained growth and profitability," said Keith Stewart, ShopNBC's chief executive officer (CEO). "We surpassed the one million customer mark. Leading indicators across all fronts continued to trend in the right direction with our Internet business achieving industry-leading e-commerce sales penetration of 39 percent. As our merchandising strategies continue to take form and be well received by the customer, we remain excited about the broadening appeal of our business."
ShopNBC did not provide guidance for 2010.
LH