QVC posted a 5 percent revenue increase in the third quarter, to $1.4 billion, the network’s parent reported Tuesday.
The No. 1 home shopping network attributed its gains primarily due to strength in the home, apparel and accessories categories, partially offset by weakness in electronics.
“We delivered our strongest quarterly performance of 2014 in the third quarter,” QVC President and CEO Mike George said in a canned statement. “We drove good growth and generated strong operating leverage, particularly in the U.S., Germany, the UK and Italy. We continue to benefit from our customer-centric focus, which has resulted in outstanding customer loyalty in all our markets, as well as strong e-commerce penetration and mobile growth.”
Earlier in the day, HSN reported a 7 percent increase in its net sales, to $578.3 million.
At QVC, the average selling price per unit (“ASP”) increased 1 percent to $58.19 from $57.88 and units sold increased 4 percent.
Returns as a percentage of gross product revenue improved 59 basis points. E-commerce revenue increased 11 percent to $592 million and grew to 43 percent from 41 percent as a percentage of total U.S. revenue.
Adjusted OIBDA increased 8 percent to $329 million and adjusted OIBDA margin increased 72 basis points.
Adjusted OIBDA margin increased primarily due to improved product margins, lower state franchise tax expense associated with the timing of credits and audit settlements and higher proprietary credit card income due in part to unfavorable regulatory bank reserve adjustments experienced in the prior year, as well as the positive impact of renegotiated contract terms. These gains were partially offset by higher freight costs.
QVC’s consolidated revenue, which includes its international networks, had consolidated revenue of $2 billion, up 4 percent.