QVC Posts 5 Percent Revenue Gain In Third Quarter

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.

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3 Responses to “QVC Posts 5 Percent Revenue Gain In Third Quarter”

  1. terri Says:

    On a side note, do you have any inside info on the recent Lamo Boot TSV? All the shipments have been recalled, and all Q is saying is that there were product or packaging issues. Which is pretty vague! Did they have to recall all of the kazillion units that they sold that day, and why?

  2. Terri Says:

    Well, I could see on my tracking information that QVC recalled my package from UPS. Then I went to the today’s special value forum on the QVC community and there is a long thread about lots of people wondering where their boots are. And turns out QVC started to ship these out and then had a lot of them returned before a lot of the customers received them. It sounds like some customers have received emails or letters from QVC saying that there was a packaging or product flaw. I don’t know what it was though. I guess I am using the word “recall” to say that QVC either canceled some shipments or pulled shipments out of the UPS process before the customers received them. I don’t mean like a government safety recall type of thing.
    I spoke to somebody at customer service today and she said that they may give customers more information about this within the next 10 days. But it’s kind of a mystery as to what was wrong with all these boots.

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