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What: Shares of ValueVision Media (NASDAQ:EVLV) were up as much as 15% today after the company reported strong fourth-quarter earnings last night.
So what: The home-shopping network said sales improved 17% to $193 million, better than estimates at $182.9 million, and posted break-even net income versus estimates of a penny-per-share loss. Sales across the board were strong as the company saw improvements in home and consumer electronics, fashion and accessories, and beauty, health, and fitness. CEO Keith Stewart said the company's "continued diversification of product mix resulted in strong sales growth across a much broader customer base."
Now what: Net shipped units increased 44% to 2.4 million, though average price point fell from $92 to $74, and customer base increased 30% in the quarter and 20% in the year. The company's shift in strategy to offering a broader range of merchandise at lower price points seems to be working. After a midmorning spike, shares moderated to about a 6% increase, but if ValueVision keeps up its solid growth rate, shares should continue to move higher.
Jeremy Bowman has no position in any stocks mentioned, and neither does The Motley Fool. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.