ValueVision Media, Inc., announced Wednesday that it is rebranding its electronic retail operations as ShopHQ, replacing the well-known ShopNBC moniker.
The Eden Prairie-based company’s website and TV channel sell everything from jewelry to consumer electronics to beauty treatments.
ValueVision on Wednesday also reported net earnings for the first quarter, which ended May 4, totaled $1 million, or $0.02 per share, up 9.8 percent from a loss of $8.7 million, or $0.18 per share, during the same period in 2012. Earnings per share were $0.01 higher than what analysts polled by Thomson Reuters had expected. This was the company’s first quarterly profit in seven years, according to the Star Tribune.
Revenue, meanwhile, totaled $151 million, up 11 percent from $137 million in the first quarter of 2012. First-quarter revenue was above analysts’ projections of $147 million. Sales growth was driven by the company’s home and consumer electronics and fashion and accessories categories.
Shares of ValueVision’s stock were trading up 6.7 percent at $4.29 early afternoon Thursday.
“Over the past few years, under a new management team, we have substantially expanded our product assortment, enhanced the customer experience, and have grown our customer base to 1.2 million customers,” CEO Keith Stewart said in a statement. “The progress we have made makes this the right time to take control of and invest in our own brand.”
In conjunction with the financial results, the company announced plans to transition from its ShopNBC brand to ShopHQ, over the course of this fiscal year, which ends February 1.
ValueVision’s current licensing agreement with NBC Universal runs through January, and ValueVision said it made its final cash payment of $2.8 million to the company on May 15 and now has no further financial obligations under the deal.
“We believe our business has evolved to the point where developing our own brand is the logical next step,” Chief Operating Officer Carol Steinberg said in a Wednesday conference call. “Taking ownership of our brand empowers us to shape our future, to build brand equity that we control, and to eliminate $4 million in annual license fees.”
The company said it would maintain its corporate identity as "ValueVision Media."
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