IMBI - iMedia Brands cuts annual sales guidance issues downside Q2 outlook

iMedia Brands ( NASDAQ: IMBI ) shares rose 5% pre-market on Monday despite the interactive media company reporting downside prelim results for second quarter and trimming outlook for fiscal 2022.

For Q2, the firm expects consolidated net sales of $133M (vs. consensus : $154.45M), an estimated $25M below management's previously provided guidance.

The shortfall to guidance was attributed to three factors: an estimated $8M impact from ShopHQ not renewing the Dish Network carriage in the quarter, an estimated $7M impact from several business divestitures completed in the quarter, and an estimated $6M impact from the Russian conflict on 123tv net sales in Germany.

Net loss is estimated to be $14.3M, an increase of about $10M compared to the same prior-year period, driven primarily by the same three aforementioned factors. Adjusted EBITDA is seen at ~$5M, an estimated $5M below management's previous guidance.

Inventory as of July 30, 2022, is estimated to be ~$105M, down $10M compared to the inventory balance as of the end of Q1 2022.

The company also trimmed its guidance for fiscal year 2022, now expecting net sales of ~$615M (vs. consensus: $658.11M) and adjusted EBITDA of $41M.

This net sales outlook represents an approximate $60M reduction from the low end of our previous full-year guidance that was driven primarily by estimate that ShopHQ's Dish Network carriage renewal will not be completed until Q4, the net sales impact from the business divestitures completed in Q2, and estimate that the Russian conflict will continue to negatively impact 123tv net sales in Germany.

The company reiterated its prior guidance to report positive earnings per share in Q4 2022.

For further details see: