ValueVision Media widens Q3 loss
ValueVision Media, Inc. (Nasdaq: VVTV) shares are up despite the direct marketer’s third-quarter loss of $5.7 million, or $0.16 per share, worse than analyst estimates of losing $0.13 per share and compared with a loss of $3.1 million, or $0.09 per share, a year earlier.
The Eden Prairie, Minn.-based firm’s quarterly revenue totaled $184.8 million, in line with analyst estimates of $184.9 million and compared with $184.9 million a year earlier. ValueVision’s total operating expenses rose 6% to $72.4 million, from $68.3 million during the same period of 2006. Subtracting restructuring and costs associated with hiring a new CEO, ValueVision’s operating expenses were $69.4 million. William Lansing, ValueVision’s former CEO, inexplicably stepped down on Oct. 26 and was replaced by John Buck, who presently serves as the interim CEO.
“Our results for the third quarter were certainly below our expectations, but there were several factors that were encouraging as we look more closely at the results,” CEO John Buck said in a statement. “Although sales equaled last year's quarter, the comparison was adversely affected by a change in our merchandise mix. High ticket LCD TV sales, which drove sales growth in 2006, were down significantly for the current quarter.”
Shares of VVTV closed at $5.41 today. Over the last 52 weeks, shares have ranged from $4.45 to $14.09.
