ValueVision Media Inc. reported revenues increased 5% to $188 million for its first quarter ending May 5, compared to last year. However, its reported net income was $34.4 million, reflecting a net loss of $2.1 million compared to the same quarter last year.
The company generates consumer sales via DRTV, the Internet and direct mail. ValueVision also operates the home shopping network ShopNBC.
“Our sales growth slowed to less than 10% for the first time in several quarters. The quarter had a strong start, but slowed in the last six weeks, driven by across the board softness in consumer demand,” said in a statement William J. Lansing, president and CEO.
ValueVision has subsequently initiated a restructuring plan that includes a 12% reduction in salaried workforce, consolidation of fulfillment operations into a single warehouse and other actions, which it anticipates will cut costs by $10 million.
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