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UPDATE 2-ValueVision dives as key supplier liquidates
August 16, 2011 / 2:20 PM / 6 years ago

UPDATE 2-ValueVision dives as key supplier liquidates

* Q2 loss/shr $0.09 vs est loss/shr $0.06

* Q2 sales $132.1 mln vs est $142.5 mln

* Shares down as much as 36 pct (Adds analyst comment, rival performance, updates shares)

Aug 16 (Reuters) - Multichannel retailer ValueVision Media Inc posted a wider-than-expected quarterly loss as one of its major consumer electronic suppliers liquidated, making it the biggest loser on Nasdaq on Tuesday.

BGB Securities analyst Murray Arenson said the supplier’s liquidation should not affect the company in the long term.

“The stock, in my opinion, is down simply because the numbers were short of expectations both at the topline and the EPS (earnings per share) level. I think the explanation regarding the consumer electronics supplier addresses the lion’s share of that issue,” he told Reuters.

In a conference call with analysts, ValueVision, which operates under the ‘ShopNBC’ brand via TV, Internet, mobile and social media, said it was trying to add a major retailer as its customer and will be announcing a deal soon.

For the second quarter, the company posted a loss of 9 cents a share, while analysts, on average, expected a loss of 6 cents per share, according to Thomson Reuters I/B/E/S.

Sales rose to $$132.1 million from $126.1 million, but fell below expectations of $142.5 million.

Earlier this month, rival teleshopping and commerce operator HSN Inc posted Wall Street-beating quarterly results.

Shares of Eden Prairie, Minnesota-based ValueVision touched an eight-month low of $3.32 in morning trade. Nearly 4 million shares changed hands by 1342 ET, about five times their 10-day moving average volume. (Reporting by Sruthi Ramakrishnan in Bangalore; Editing by Maju Samuel)

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