QVC squeaked by with a slightly better first quarter than HSN. At least the No. 1 home shopping network generated a revenue gain, up 1 percent to $1.3 billion, the company reported Thursday.
QVC attributed its performance to primarily “a result of strength in all categories except electronics,” according to a press release. MMMMMM — maybe we’ll be seeing more jewelry now!
In contrast, HSN saw its net sales drop 1 percent in the first quarter, to $544.5 million.
“We achieved solid first quarter results, with the U.S. market expanding profitability in the midst of a difficult retail environment,” QVC President and CEO Mike George said in a canned statement.
“We attribute part of this to QVC’s high-quality, differentiated product offering and our ability to know what customers want, when they want it. We look forward to bringing this expertise, as well as our engaging multi platform shopping experience, to the French market.”
The average selling price per unit (“ASP”) at the domestic home shopping network increased 1 percent from $60.51 to $60.89 and units sold increased 1 percent compared to the prior-year first quarter.
Returns as a percent of gross product revenue increased by 106 basis points due to higher rates in electronics, home and accessories.
In the same period, eCommerce revenue increased 8 percent to $590 million and grew to 45 percent from 42 percent as a percentage of total U.S. revenue.
Adjusted OIBDA increased 3 percent to $301 million and adjusted OIBDA margin increased 63 basis points in the first quarter. Adjusted OIBDA margin increased primarily due to higher product margins.
Overall at QVC, including its international networks, its consolidated revenue increased 1 percent in the first quarter to $2 billion. During the same period, adjusted OIBDA increased 2 percent to $412 million and operating income remained flat at $260 million.