QVC Posts 3 Percent Growth, To $1.4 Billion, In Second Quarter

QVC saw its second-quarter revenue rise 3 percent, to $1.4 billion, but operating income slipped 2 percent, the home shopping network’s parent reported Tuesday.

QVC attributed its second-quarter growth primarily “to strength in all categories except electronics and jewelry,” the network’s parent, Liberty Interactive Corp., said in a press release.

Average selling price per unit (“ASP”) increased 1 percent to $57.05 from $56.39 and units sold increased 3 percent.

Returns as a percentage of gross product revenue increased 35 basis points.

E-commerce revenue increased 7 percent to $588 million and rose slightly to 43 percent from 42 percent as a percentage of total U.S. revenue. And QVC U.S. mobile penetration was 37 percent of orders.

Adjusted OIBDA increased 2 percent to $325 million and adjusted OIBDA margin decreased 35 basis points. The adjusted OIBDA margin decreased primarily due to continued investment in commerce platforms and e-commerce marketing, which were partially offset by higher product margins.

Liberty released 2Q results for not only the U.S. QVC network but the company’s international home shopping channels. Overall, including those networks, QVC’s consolidated revenue increased 3 percent, to $2 billion in the quarter.

Adjusted OIBDA increased a hair, 1 percent to $439 million, and operating income was essentially flat at $284 million.

“Our second-quarter performance reflects the strategic actions we are taking to extend our highly differentiated retail model across geographies and commerce platforms,” QVC President and CEO Mike George said in a canned statement.

“We generated solid results, with strong gains in Europe and China and improved growth in the U.S., partially offset by macro challenges in Japan,” George said.

“As we re-imagine the worlds of shopping, entertainment and social as one, we continue to deliver a high-quality value proposition to our customers, as evidenced by our strong e-commerce and mobile penetration and excellent customer retention.”


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