Archive for February, 2011

QVC Revenue Up 3 Percent In Q4, And Rises 5 Percent For 2010

February 28, 2011

QVC’s domestic revenue increased 3 percent in the fourth quarter, to $1.7 billion, and 5 percent, to $5.2 billion, for the year, the home shopping network’s parent Liberty Media Corp. reported Monday.

Sales of electronics, beauty and accessories increased while jewelry sales declined.

QVC U.S. operating income decreased 2 percent to $261 million for the fourth quarter and increased 12 percent to $782 million for the year.

Last week HSN reported a 4 percent increase in fourth quarter revenue, to $636.8 million, and a 5 percent jump for 2010, to $2.12 billion.

QVC’s average selling price for the fourth quarter increased 11 percent from $50.37 to $56.00 while total units sold decreased 6 pervent to 33.2 million. For the year, the average selling price increased 4 percent from $49.01 to $51.19 and units sold increased 2 percent to 110.6 million.

Returns as a percent of gross product revenue increased from 16.4 percent to 16.8 percent for the quarter and increased from 17.6 percent to 18 percent for the year. QVC.com sales as a percentage of U.S. sales grew from 31 percent in the fourth quarter of 2009 to 36 percent in the fourth quarter and grew from 29 percent to 33 percent for the year.

QVC U.S. adjusted OIBDA decreased 1 percent for the fourth quarter and increased 8 percent for the year. Overall, the U.S. adjusted OIBDA results were negatively impacted by $9 million for the quarter and $14 million for the year due to the change in terms of QVC’s arrangement with GE Money Bank for its QCard that was effective in August 2010, as previously disclosed. Excluding the negative impact of this arrangement, the U.S. adjusted OIBDA increased 1 percent and 9 percent for the fourth quarter and year ended Dec. 31, respectively.

QVC’s consolidated revenue, which includes its domestic and international networks, increased 4 percent in the fourth quarter, to $2.5 billion, and 6 percent, to $7.8 billion, for the year. Adjusted OIBDA increased 1 percent, to $533 million, in the fourth quarter and 7 percent, to $1.7 billion, for the year.

Operating income increased 1 percent to $393 million in the fourth quarter and 11 percent to $1.1 billion for the year. Excluding the negative effects of a new agreement with GE Money Bank and the launch of a network in Italy, adjusted OIBDA increased 5 percent in the fourth quarter and 10 percent for the year.

QVC’s international revenue increased 7 percent in the fourth quarter to $802 million and 8 percent for the year to $2.6 billion including the impact of unfavorable exchange rates in the United Kingdom, Germany and Italy and favorable exchange rates in Japan. International adjusted OIBQVC’s consolidated revenue increased 4 percent in the fourth quarter, to $2.5 billion, and 6 percent, to $7.8 billion for the year.

“Our fourth quarter results continued the positive trend with our consolidated adjusted OIBDA margin, excluding our start up operations related to Italy and the negative impact of our new agreement with GE Money Bank, improving 24 basis points over a particularly strong fourth quarter in 2009,” QVC president and CEO Mike George said in a canned statement.

“For 2010, we had some of the most balanced results across markets that we have seen in many years,” he said. “Every established market increased revenue growth and adjusted OIBDA margins, achieved strong eCommerce growth and enjoyed growth in the count of new customers. We made continued progress in broadening the appeal and accessibility of our brand across both markets and platforms. Among the highlights of our achievements this year, we launched a number of exciting new platforms – from mobile applications to second channels and simulcasts; we continued to elevate our products and brands and engaged our viewers with compelling programming including big events like Fashion’s Night Out; and with Italy, we launched our first new market in a decade.”

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QVC Host Lisa Robertson Kills On The Red Carpet With Peacock Green Gown

February 27, 2011

We’ll be fair. We criticized QVC host Lisa Robertson’s dress for the home shopping network’s big pre-Oscar party in Beverly Hillls last night. It made her look hippy.

Well, she is more than making up for that dreadful Isaac Mizrahi dress last night. She looks stunning tonight in a gorgeous, two-toned peacock green sleeveless gown with feathers on one side of the bodice. It’s by Mark Zunino, who is Nolan Miller’s partner in a QVC jewelry line.

Robertson looks so fine that when her fellow QVC host Shawn Killinger saw her, she asked, “Are you single?”

Shawn, we didn’t know you rolled that way.

QVC Host Patti Reilly, Long-Rumored To Be Leaving, Is Actually Leaving

February 27, 2011

Another long-time QVC host is flying the coop. Patti Reilly is following Lisa Mason out the door.

Reilly posted the news on her blog, on her own website. Thanks for the tip, Joanie-B!

Patti Reilly's photo from Puerto Rico

Here’s part of Reilly’s blog:

“It’s true that I am leaving QVC after 11 great years. I’m looking forward to opening myself up to new ideas and experiences in life, but I’d be fooling myself if I didn’t admit that it’s a little scary. I’ve been so lucky to have a healthy family, nephews, my niece, great friends and co-workers, all in their own way who have opened up and shared a piece of their life with me. Through a different lens, and mentally picturing myself for one day in their shoes, came the realization that I want to try other things. That I want to value and really, really be present with my family & friends more.

Reilly, fresh from a vacation in Puerto Rico, wrote that she had an epiphany when when her black lab got sick last summer. She said she lives alone with her two dogs, and was heartbroken when the lab could no longer get up the stairs to sleep with her.

I talked to my family and friends more and reached out to people I haven’t seen in years. I stepped back and looked at my life, which is not really where I ultimately envisioned it to be. I would love to boast about my children, husband & homelife, but my picture right now just looks different than what I would have thought had you asked me 10 years ago. I have an opportunity now to take a step, start a new journey and I’m going to embrace that. I know that if Piper could climb up those stairs one last time, she definitely would!

Reilly was doing executive training when she caught the QVC bug.

QVC was the only watchable show on at 2 or 3 in the morning. I saw Lisa Robertson selling Smashbox Cosmetics and suddenly found my next goal. I auditioned for a Show Host position in February, 2000 and was offered the job a month later. I’ve been at QVC for 11 years now…can you believe it??? I love what I do, especially when I host beauty shows.

Reilly is a very polarizing figure. QVC fans either loved her or hated her. She sparked a lot of speculation when she lost a ton of weight, We suspected surgery, but she claimed it was just a diet. On some of her more recent appearances, she made bizarre comments about her moods and sometimes made off remarsk to vendors.

She is regularly brutally lampooned on the Television Without Pity website.

Sorry, Lisa Robertson’s Dress For QVC’s Red Carpet LA Party Makes Her Look Plump

February 26, 2011

We just got in and tuned in to QVC’s Red Carpet pre-Oscar shindig at the Four Seasons in Beverly Hills. We’ve got to hand it to QVC — there is a huge crowd there, and when we came in actress Marlee Matlin was using sign language to say something that we missed.

Now QVC jewelry queen Joan Rivers is talking to host Lisa Robertson, hawking sunglasses.

Lisa Robertson, we wished we liked your red carpet dress

Earlier in the day, on Facebook Robertson said she was heading out to get made up for the party five hours before it started. “It takes a village,” she joked, to get her ready to go on-air. So we were looking forward to see how she looked.

Robertson is a beautiful woman, but she is clad in a long beige gown that is pulling against her stomach area and making her look heavy — which we know she isn’t. This unflattering dress is apparently by QVC designer Isaac Mizrahi. Isaac, Isaac, Isaac.

Robertson’s side ponytail is not such a great look, either. And guess who did the hair? QVC vendor Nick Chavez. Nick, Nick, Nick.

We also got a gander at QVC host Shawn Killinger, who is running around with a microphone interviewing the partygoers. She’s wearing a short black babydoll dress, and her boobs are popping out of the top of it.

Now model Camila Alves, actor Matthew McConaughey’s baby mama, is showing off a pretty fringed bag and a huge bag she did for QVC. She is dressed in a beautful black sequined dress, and looks stunning.

Kim and Kourtney Kardashian are being interviewed on the red carpet, and will soon be pitching their QVC clothing line, K-Dash.

And FYI, vendors and hosts from different home shopping networks do fraternize together. Former QVC host Dave King, who is now at ShopNBC, is also in LA. And on his Facebook page he posted a photo of him, Robertson and Laurie Feltheimer, who does the “Hot in Hollywood” line for HSN, at a restaurant.

HSN Dispatches Bigwigs To ‘Fireside Chats’ At Two Investor Conferences

February 25, 2011

HSN will be sending honchos to two coming investor conferences, it said Thursday, for “fireside chats.”

HSN CEO Mindy Grossman will participate in the Lazard Capital Markets Technology and Media Conference in Boston on March 14 at 11:30 a.m.

HSN chief financial officer Judy Schmeling will participate in the ROTH Capital Partners 23rd Annual OC Growth Stock Conference in Laguna Niguel, Calif., on March 16 at 9:30 a.m.

The format of both sessions will be a “Fireside Chat,” according to HSN’s press release. That’s a new one on us.

If you want to hear a live broadcast of both presentations, you can visit the investor relations section of HSN’s website at http://www.hsni.com.

For those unable to participate, an archived broadcast will be available shortly following the presentation.

ShopNBC Seems Apprehensive About Comcast, Its New Big Stockholder

February 23, 2011

ShopNBC, looking to float a $75 million stock offering, sure sounds wary about its newest large shareholder Comcast.

In a filing with the Securities and Exchange Commission Wednesday, ValueVision Media i.e. ShopNBC said that Comcast could block some of its future plans and could opt not to renew a license deal that lets the home shopping network use “NBC” in its name.

Comcast inherited a 17 percent stake in ShopNBC when it acquired NBC Universal.

We have to run to our day job, but here are some of the comments in the S-3 filing:

NBCU, of which a controlling interest is now owned by Comcast, and GE Equity have the ability to exert significant influence over us and have the right to disapprove of certain actions by us.

As a result of their equity ownership in our company, NBCU, of which a controlling interest is now owned by Comcast, and GE Equity together are currently our largest shareholder and have the ability to exert significant influence over actions requiring shareholder approval, including the election of directors, adoption of equity-based compensation plans and approval of mergers or other significant corporate events.

Through the provisions in the shareholder agreement and certificate of designation for the preferred stock, NBCU and GE Equity also have the right to block us from taking certain actions. On June 9, 2010 we registered for sale all of the outstanding shares of common stock owned by NBCU, however, on June 24, 2010, NBCU decided not to sell the shares registered in that registration statement due to prevailing prices.

This registration statement has not been withdrawn and NBCU may decide to sell its shares pursuant to that registration statement in the future. The interests of NBCU and GE Equity may differ from the interests of our other shareholders, and they may block us from taking actions that might otherwise be in the interests of our other shareholders.

Our directors, executive officers and principal shareholders will continue to have substantial control over us and could delay or prevent a change in corporate control.

Our directors, executive officers and holders of more than 5 percent of our common stock, together with their affiliates, beneficially own, in the aggregate, over 38 percent of our outstanding common stock. As a result, these shareholders, acting together, would have the ability to control the outcome of matters submitted to our shareholders for approval, including the election of directors and any merger, consolidation or sale of all or substantially all of our assets.

In addition, these shareholders, acting together, would have the ability to control the management and affairs of our company. Accordingly, this concentration of ownership might harm the market price of our common stock by:

• delaying, deferring or preventing a change in corporate control;

• impeding a merger, consolidation, takeover or other business combination involving us; or

• discouraging a potential acquirer from making a tender offer or otherwise attempting to obtain control of us.

As to the NBC name, the SEC filing says:

Expiration of the NBCU branding license would require us to pursue a new branding strategy that may not be successful.

We have branded our television home shopping network and internet site as ShopNBC and ShopNBC.com, respectively, under an exclusive, worldwide licensing agreement with NBCU for the use of NBC trademarks, service marks and domain names that continues until May 2012 or May 2013 if a one-year extension is agreed to by both NBCU and us.

We do not have the right to automatic renewal at the end of the license term, and consequently may choose or be required to pursue a new branding strategy in the next 10 months which may not be as successful as the NBC brand with current or potential customers. NBCU also has the right to terminate the license prior to the end of the license term in certain circumstances, including without limitation in the event of a breach by us of the terms of the license agreement or upon certain changes of control.

HSN Sees 4 Percent Revenue Gain In Fourth Quarter, 5 Percent Jump For 2010

February 23, 2011

HSN’s net sales increased 4 percent in the fourth quarter, rising to $636.8 million, while total sales for 2010 were up 5 percent, to $2.11 billion, the home shopping network reported Wednesday.

But HSN saw a decline and loss in operating income, down 1 percent, to $64.2 million from $65.2 million in the fourth quarter. For the full year, operating income gained 7 percent, to $168.7 million.

HSN’s gross profit was flat, at $205.4 million, for the fourth quarter. For the full year, profit was up 4 percent, to $709.2 million.

HSN’s $636.8 million in nset sales included 9 percent sales growth at HSN.com.

HSN CEO Mindy Grossman

HSN Inc., which includes the Cornerstone unit, saw its net sales grew 9 percent over the prior year to $915.2 million.

Cornerstone’s net sales increased 23 percent to $278.4 million with Internet sales penetration reaching 58.6 percent.

“Following an impressive performance in the fourth quarter of 2009, HSNi grew net sales by 9 percent in the fourth quarter of 2010 led by strength in electronics, fashion and wellness at HSN and accelerated sales growth at the three largest Cornerstone brands – Frontgate, Ballard Designs and Garnet Hill,” HSNi CEO Mindy Grossman said. “Our strategic efforts to create a multichannel experience resulted in e-commerce sales growth of 15 percent for the company.”

“In 2011, we are focused on giving customers even more reasons to deepen their engagement with our brands at HSNi,” Grossman said. “We continue to strengthen our merchandise portfolio at HSN and are developing strategic partnerships to create compelling special events and experiences. At Cornerstone, we will continue to grow our customer base while driving further e-commerce penetration across the portfolio.”

HSNi’s Adjusted EBITDA increased 6 percent to $93.3 million compared to $88 million in the prior year. These results were driven by a 9 percent increase in net sales, partially offset by a 140 basis point decrease in gross profit margin and a 5 percent increase in operating expenses, excluding non-cash charges.

The increase in operating expenses was primarily related to Cornerstone. Operating income increased 3 percent to $77.4 million compared to $74.9 million in the prior year.

Adjusted earnings per share were 77 cents compared to 74 cents in the prior year. GAAP diluted EPS was 69 cents compared to 68 cents in the prior year.

HSNi’s annual net sales grew 9 percent over the prior year to $3.0 billion. HSNi’s annual adjusted EBITDA increased 25 percent to $257.6 million compared to $206.1 million in the prior year.

HSNi’s operating income increased 26 percent to $196.1 million. Included in Adjusted EBITDA and operating income for the year was a $2.5 million sales provision for a voluntary product recall at one of the Cornerstone brands and costs related to a $2.5 million legal settlement, both of which were recognized in the third quarter.

Adjusted EPS increased 35 percent to $1.92 compared to $1.42 in the prior year. GAAP diluted EPS increased 31 percent to $1.65 compared to $1.26 in the prior year. The combined impact of the product recall and legal settlement on the annual Adjusted EPS and GAAP diluted EPS was $3 million, net of taxes, or five cents per diluted share.

QVC Horns In On The Oscar’s Red-Carpet Glitz In LA Another Year

February 23, 2011

QVC will be back in Cali this weekend for the second year in a row to ride the red-carpet coattails of the Oscars.

Claiming that it got “impressive viewership” with its first such broadcast, “Buzz on the Red Carpet – Live from LA” will, or so the press release says, QVC “once again take viewers behind-the-scenes with exclusive content from top fashion designers, beauty newsmakers, celebrities and more.”

There will be two live broadcasts, this Friday at 9 p.m. (ET) and Saturday at 8 p.m. (ET).

During the shindig at the Four Seasons Hotel Los Angeles at Beverly Hills, “Gossip Girl” actress Kelly Rutherford will finally debut her luxury handbag line during the Saturday broadcast.

“Much like New York during Fashion Week, there is no place like Los Angeles during awards season,” QVC U.S. CEO Claire Watts said in a canned statement. “’The Buzz’ on the Red Carpet broadcast aims to offer engaging programming that takes our viewers where they want to go. With our lineup of personalities and industry experts, we feel confident that this season will be full of excitement for our customers.”

Fashion designers including Isaac Mizrahi, Dennis Basso and Marc Bouwer are scheduled to appear during the broadcasts along with Lori Goldstein, the Kardashians and Melania Trump.

Actor Matthew McConaughy’s girlfriend (and mother of his child) Camila Alves and costume designer Janie Bryant, of “Mad Men,” will also present their latest collections. They will join some of the best in the beauty business including Kate Somerville, Josie Maran, Laura Geller, Smashbox and Tarte, among others, will be on hand.

QVC.com will host a special online preview of the event now through Friday.