ShopNBC has been slipping and sliding into home shopping heaven for quite some time now. You can imagine that in these current economic times that the number aren't getting any better. They just released their preliminary fourth-quarter results and the Christmas shopping season wasn't kind to ShopNBC. Revenue was down 35% compared to the same period in 2007. They have a cash flow deficit of $15 million and an estimated net loss of about $40 million. They also weren't able to find a buyer for their auction--not even on Value Pay.
Here's a transcript of the Value Vision conference call where they try their very best to put a vermeil coating on their horrible numbers.
They claim, among other things, that they had reduced return rates, lower average selling price, and lower operating costs (i.e. they recently laid off a bunch of employees). But there wasn't enough vermeil to stop the stocks from falling sharply over the bad news.
ShopNBC is also trying to take a page from the number one home shopping channel, QVC, by taking some of their people. Keith Stewart, was promoted to CEO, Darlene Daggett was added as a consultant, ad Randy Ronning is joining the board--all of whom are QVC alum,
But the real news wasn't included in any of these reports. Rumor has it that ShopNBC is taking the tiger by the tail by joining up with the always entertaining Wayne Scot Lukas. I can't verify it, but I hope this is true. Can you imagine WSL and Charla together??? I mean the entertainment value alone. Praise the Lord and pass the plate twice!
Allegedly, Wayne Scot Lukas sent out an email to his fans leaking the news. I don't know if this email is the real deal is not, but it certainly appears to be authentic. What do you think? Check it out here.