In the second quarter No. 1 home shopping network QVC posted a 3 percent increase in revenue, to $1.3 billion, boosted by the beauty and home categories, its parent reported Tuesday.
Last week HSN said that it registered net sales of $526.2 million in the second quarter, up 5 percent from the prior-year.
QVC, a unit of Liberty Interactive Corp., saw its average selling price per unit (“ASP”) increase 3 percent from $54.84 to $56.39, while units sold declined 1 percent compared to the prior-year second quarter. Returns as a percent of gross product revenue improved 72 basis points due primarily to changes in prior period estimates based on actual experience.
In the same period, QVC’s eCommerce revenue jumped 10 percent to $550 million and increased to 42 percent from 39 percent as a percentage of total QVC net revenue. Mobile penetration was 28 percent of QVC.com orders.
Adjusted OIBDA increased 2 percent to $320 million and adjusted OIBDA margin) decreased 22 basis points in the second quarter. Adjusted OIBDA margin decreased primarily due to higher inventory obsolescence and personnel costs as well as lower credit card income. These unfavorable drivers were partially offset by improved product margins.
“QVC posted solid results in the U.S., while the international markets proved more challenging and were negatively impacted by the currency fluctuations in Japan and the UK,” Liberty President and CEO Greg Maffei said in a canned statement.
“Our eCommerce companies built on their strong Q1 performance with continued revenue and adjusted OIBDA growth in Q2,” he said. “We repurchased $220 million of Liberty Interactive stock from May 1 to July 31, and $551 million year to date. Attributable to Liberty Ventures, TripAdvisor posted strong results as they successfully rolled out their hotel metasearch display.”
QVC’s consolidated net revenue, which includes the domestic network and several international home shopping channels, decreased 1 percent in the second quarter to $2 billion. During the same period, adjusted OIBDA decreased 1 percent to $434 million and operating income decreased 5 percent to $285 million.
“Second quarter results showed growth in new customers and continued strength in our digital platforms, despite a cautious consumer spending environment,” QVC President and CEO Mike George said. “eCommerce has grown to represent 37 percent of QVC’s global revenues, and of that, 30 percent of our eCommerce orders are from mobile devices. QVC has grown to become one of the world’s largest mobile commerce retailers, which is the result of how we’re working to change the way the world shops by reimagining shopping, entertainment and social as one.”
QVC’s international revenue in dollars decreased 6 percent in the second quarter to $649 million. The second-quarter results included the negative impact of the strengthening of the dollar against the Japanese Yen, and to a lesser extent, the UK Pound Sterling, which were somewhat offset by the weakening of the dollar against the Euro.
Adjusted OIBDA decreased 7 percent to $114 million and adjusted OIBDA margin decreased 15 basis points in the second quarter. In constant currency, QVC’s international revenue and adjusted OIBDA increased 2 percent and 4 percent, respectively.