It’s that time of the year again: third-quarter earnings. And QVC on Tuesday reported that its revenue was up 5 percent, to $1.3 billion.
Domestic QVC’s sales rose “primarily as a result of strength in the home, accessories and beauty categories,” the home shopping network’s parent, Liberty Media Interactive, said in a press release.
The average selling price per unit increased 5 percent from $55.21 to $57.88 and units sold increased 1 percent compared to the prior-year third quarter.
Returns as a percent of gross product revenue improved 42 basis points “due primarily to lower product return mix within the categories,” the release said.
In the same period, QVC eCommerce revenue increased 12 percent to $535 million and grew to 41 percent from 39 percent as a percentage of total QVC net revenue.
Adjusted OIBDA increased 9 percent to $304 million and adjusted OIBDA margin(2) increased 86 basis points in the third quarter.
“Adjusted OIBDA margin increased primarily due to improved product margins, due in part to a favorable product mix, and favorable warehouse and freight expenses,” according to the press release.
“QVC again posted solid results in the U.S., while the international markets proved more challenging and were negatively impacted by currency fluctuations in Japan and the U.K.,” Liberty President and CEO Greg Maffei said in a canned statement.
QVC’s consolidated net revenue, which includes its domestic and international shopping networks, increased 2 percent in the third quarter to $1.9 billion. During the same period, adjusted OIBDA increased 3 percent to $408 million and operating income remained relatively flat at $259 million.
“QVC had strong results in the third quarter, and marked great success in the growth of our global TV and digital platforms,” QVC President and CEO Mike George said in a statement.
“We’ve expanded QVC’s audience reach to 290 million homes worldwide, and created new digital platforms that include the launch of toGather, our new social commerce platform. We’re delivering a unique shopping experience that is perfectly aligned with the megatrends that are reshaping the retail industry today.”