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Sales slide 16 percent for ShopNBC

August 19, 2009

Minneapolis, Minn.--Multi-channel retailer ShopNBC recorded revenues of $119.3 million in the second quarter of 2009, a 16 percent decrease from the same period last year, according to a media release issued on Wednesday.

The 16 percent decrease in sales is a slight increase from the first quarter of 2009, when ShopNBC recorded a 14 percent drop, but still an improvement over the 35 percent slide the company saw in the fourth quarter of 2008.

The decrease, the release stated, was "driven primarily by the intended reduction of the company's average selling price," which dropped from $194 a year ago to $112 in the second quarter.

ShopNBC announced a lower price-point strategy in a number of categories, including jewelry, earlier this year.

During an earnings call held on Wednesday morning, ShopNBC President and Chief Executive Officer Keith Stewart noted that the company was following through on this strategy when it comes to jewelry, concentrating on sales in categories such as fashion, colored gemstone, sterling silver and Brilliante, its line of cubic zirconia jewelry.

During the call, Stewart also noted the company's robust watch sales, where business is up 39 percent, new customer accounts are up 136 percent, net units are up 90 percent and margins are at 40 percent.

According to the release, watch sales in the second quarter included ShopNBC's "Must Watch" event, noted by the company as one of its more successful events.

"Must Watch" generated $5 million in watch sales, including a midnight finale that garnered $500,000 in sales in 20 minutes of 1,200 Invicta Reserve Men's Lupah watches, and a separate Invicta Men's Subaqua Noma II Swiss Quartz Chronograph watch event that generated sales of $1.9 million.

Also during the second quarter, ShopNBC added a record 106 new vendors in home, fashion, jewelry and beauty, and a record 32 new guest hosts, including gem expert Paul Deasy.

In addition, beginning Sept. 18, television personality Suzanne Somers is set to join ShopNBC, bringing with her the full range of her product line, which includes jewelry.

ShopNBC ranks No. 25 on National Jeweler's State of the Majors 2009 $100 Million Supersellers list. The multi-channel retailer recorded an estimated $205 million in jewelry and watch sales in 2008.
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