HSN Inc.’s Cornerstone Brands served as the cornerstone of a very successful second quarter for the multi-channel retailer. The catalog-focused division of the company, which comprises leading home and apparel brands such as Ballard Design, Frontgate, Garnet Hill and Grandin Road, turned in an especially strong quarter with sales results that — if annualized — would match their best-ever past performance. Net sales for Cornerstone increased 20% to $223.6 million compared to the prior year and internet sales penetration increased 140 basis points to represent 55.4% of Cornerstone’s net sales. The sales growth came in large measure from an increase in demand for luxury and outdoor products, as well as from investments in catalog circulation. Gross profit increased 22% to $96.5 million, while gross profit margin improved 50 basis points to 43.1% from 42.6% in the prior year, and adjusted EBITDA increased 277% to $18.5 million from $4.9 million in the prior year. Continue reading »
Zalemark to Launch New TV Shopping Network, LuxTV, This Fall
Zalemark Holding Company Inc., the California-based jewelry design and manufacturing company, plans to launch a new home shopping network September 1st, according to an exclusive story in National Jeweler (Jul. 28, 2010). The network, called LuxTV, will make use of the remaining assets of now-defunct multimedia retailer Gems TV, which Zalemark expects to purchase in the coming days. Those assets include Gems TV’s former headquarters in Reno, Nevada, where the new network will also be based. LuxTV will offer nearly all the Zalemark brands–Demeter, Steven Zale Beverly Hills, B. Smith and Paris Blues (Badgley Mishka and Seventeen jewelry will not be included)–as well as other jewelry lines, at steep discounts both on-air and on the Internet at ShopLuxTV.com.” LuxTV’s initial market will be 40 million households in all 50 states through distribution on the Dish Network, DIRECTV and various cable stations. The company will be run independently of Zalemark as LuxTV Inc., with Matt Chao serving as president. Future plans call for an expansion of the network’s merchandise into branded shoes, handbags and ladies’ accessories, with an emphasis on celebrity-endorsed lines.
On Monday, ShopNBC filed form S-3, a short form, shelf registration agreement, with the U.S. Securities and Exchange Commission that will enable the company to raise up to $75 million by initiating a public offering quickly at a time of its choosing in the coming months. The filing underscores the continuing precariousness of the DRTV network’s financial position. “We have a history of losses and a high fixed cost operating base and may not be able to achieve or maintain profitable operations in the future,” the retailer warned in its filing. Homeshoppingista Jul. 26, 2010
John Malone “Wouldn’t Mind Acquiring” HSN
In an interview with Bloomberg’s Betty Liu, Liberty Media Corp. Chairman John Malone said that he believes synergies exist between QVC and HSN that make a deal between the networks attractive to shareholders of both companies. He suggested that Liberty Media execs would be speaking to their HSN counterparts about a potential acquisition, merger or other partnering arrangements, once a two-year freeze expires at the end of August. Watch the video here on the Washington Post website. Jul. 14, 2010
New Christian Shopping Channel Enters the Fray
According to its press notice, the Christian Shopping Channel (CSC) aims to be the next major player in the home shopping retail industry. CSC is produced in Orlando, Fla., and currently broadcasts exclusively at Christian internet television station DoersTV.com on channel 9. The DRTV channel emphasizes Christian inventors and family oriented products.
CSC also claims to have greatly reduced the cost barrier that prevents many inventors from selling their products on networks such as QVC and HSN. “There is no lower wholesale price per unit, sales per minute, warehouse inventory, take backs on unsold inventory, or return requirements for inventors.” (Sacrilege!) CSC is the brainchild Pastor David Wright — also the founder of DoersTV.com — who originally shopped the idea to QVC and was “crushed” when they rejected it. DoersTV.com Press Release Jun. 8, 2010
Jewelry Television Completes Equity Deal with Gems TV Holdings Limited
Tennessee-based Multimedia Commerce Group, parent company of Jewelry Television, has completed its $60 million equity deal with Singapore-based Gems TV Holdings Limited, whose U.S. subsidiary Gems TV, ceased operations and filed for Chapter 11 bankruptcy protection in April. Gems TV Holdings will receive a 32.7% shareholding interest in Multimedia Commerce Group, which expects to take the company public in the future.
“This transaction represents a positive scenario for both of our organizations, Tim Matthews, CEO and president of Jewelry Television, said in a statement. The Gems TV investment greatly enhances our balance sheet and enables JTV to fast track our aggressive growth plan with one less major competitor.” As part of the agreement, which closed Thursday, Jewelry Television will get a $10 million cash payment, a $10 million promissory note, $20 million in jewelry and gemstone inventory, and $20 million in intangible assets such as proprietary technologies, brand and domain names, the Internet site thaigem.com, and nearly 15,000 custom jewelry designs. Knoxville News Sentinel (KY) Jul. 7, 2010
Chinese Online Retailer and Media Company Form Digital TV Shopping Joint Venture
Taobao, a subsidiary of Alibaba Group, and Wasu Media Internet Limited, a subsidiary of Wasu Digital Television Media Group, have formed a joint venture to launch an interactive, digital television shopping network and website to target Chinese consumers. Taohua.com will be China’s first comprehensive digital products platform offering single-stop sharing and purchase of products. “For the first time in China, consumers will be able to shop from home on the Wasu Television Taobao Mall via interactive digital television shopping technology, which allows selection of goods and services using their TV.” Initial product categories will include: household goods, consumer electronics and apparel. The owners have capitalized the joint venture with RMB 100 million (approximately USD $14.7 million). Alibaba Group Press Release Jun. 29, 2010
Chuck Woolery to Return to ShopNBC this Summer
The first Chuck Woolery Outdoors programs, which aired last weekend on ShopNBC, have apparently met or exceeded the retailer’s expectations. A representative of the network tells PAS that programmers are working to schedule Woolery’s next appearance by mid-July.
According to a ShopNBC representative, Bob Bowersox, who presented for QVC until late 2008, will appear on ShopNBC as an expert guest today, and may take on a more regular, on-air assignment thereafter. As for today, Bowersox will appear at noon and 4 p.m. ET in the “Around the Kitchen” show series. (He apparently already made his first two appearances at midnight at 4 a.m. ET) One of the products, he is presenting is the Sharper Image Super Wave Oven (ShopNBC product number: B55156), which is designed to cook food up to three times faster than a conventional oven, while using 80% less energy.
Attendees Report on Rise of Silver, Dot-Coms and Registrations at JCK Las Vegas Show
Given the surging price of gold, it’s no surprise that silver was the star — both with and without diamonds — at last week’s JCK Las Vegas jewelry show. Buyer registrations were up 20% over last year and one manufacturer’s representative opined that Dot-com buyers (from both established and new retailers) likely accounted for the increase. “They were everywhere.” The mood was largely upbeat with everyone on the hunt for the next “new, hot thing.” The Indian trade outlet Diamond World briefly recaps the colored-gemston AGTA Show, the Antique Show and the Couture Show, in addition to the JCK Jewelry Show, at the source link. Diamond World (India) Jun. 10, 2010
