QVC Reports 6 Percent Increase In Fourth-Quarter Revenue

QVC posted a 6 percent gain in revenue in the fourth quarter, to $1.9 billion, and was up 5 percent, to $5.8 billion, for last year, its parent Liberty Interactive Corp. reported Friday.

That’s a better showing than HSN came up with last week. The No. 2 home shopping network reported a 2 percent gain in net sales in the fourth quarter, to $697.4 million. For the full year 2013, HSN’s net sales were up 2 percent, to $2.31 billion.

For domestic QVC, on the fourth quarter and full year it experienced growth in all categories except jewelry. Average selling price per unit (“ASP”) increased 4 percent from $61.83 to $64.56 and units sold increased 2 percent compared to the prior-year fourth quarter.

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Fourth-quarter returns as a percent of gross product revenue increased 25 basis points. For the full year, ASP increased 5 percent from $57.52 to $60.15 and units sold were flat. Returns as a percent of gross product revenue improved 33 basis points.

In the fourth quarter, eCommerce revenue increased 12 percent to $873 million and grew to 45 percent from 43 percent as a percentage of total U.S. revenue. For the full year, eCommerce revenue increased 12 percent to $2.5 billion and grew to 43 percent from 40 percent as a percentage of total U.S. revenue.

Adjusted OIBDA increased 2 percent to $437 million in the fourth quarter and 5 percent to $1.4 billion for the year. Adjusted OIBDA margin(2) decreased 85 basis points in the fourth quarter and was flat for the full year.

Adjusted OIBDA margin decreased in the fourth quarter primarily due to a $20 million net favorable legal settlement that occurred in the fourth quarter of 2012, and for the full year, the year-over-year negative impact of the settlement was primarily offset by improved product margins and lower warehouse costs.

Excluding the impact of the legal settlement, adjusted OIBDA increased 7 percent and 6 percent\% in the fourth quarter and for the full year, respectively, and adjusted OIBDA margin would have increased 25 basis points and 35 basis points in the fourth quarter and for the full year, respectively.

QVC’s consolidated revenue, which includes its numerous international networks, increased 2 percent in the fourth quarter to $2.7 billion and was up a hair, 1 percent, for the full year to $8.6 billion.

“We generated over $3.2 billion in eCommerce revenues in 2013, including $1.2 billion in mobile orders, making QVC one of the world’s largest and most profitable eCommerce and mobile commerce retailers,” QVC President and CEO Mike George said in a canned statement. “We credit this success to the trust-based relationships we’ve built and continue to cultivate with our existing customers, in addition to the 3.8 million new customers who joined our global shopping communities last year.”

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2 Responses to “QVC Reports 6 Percent Increase In Fourth-Quarter Revenue”

  1. Heinrich Says:

    Tired programming, blaming others, expanding too fast, poor values, unbelievable bureaucracy and a smooth talking leader who has no clue other than how to ingratiate himself with the mother ship and make millions upon million for himself….. hmmm wonder why they have poor results….guess you will have to continue to put lipstick on Miss Piggy.

  2. AprilD Says:

    Or lipstick on Joan Rivers!

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