QVC Sees 3 Percent Revenue Gain, To $1.3 Billion In First Quarter

On the heels of HSN seeing double-digit gains, QVC’s domestic revenue increased a measly 3 percent to $1.3 billion in the first quarter, the No. 1 home shopping channel reported Friday.

That compares to the 10 percent gain in net sales, to $600.5 million, that HSN recently reported.

QVC units sold increased 3 percent, average selling price per unit increased 1 percent to $61.75 and returns as a percentage of gross product revenue increased 41 basis points in the quarter.

The U.S. network experienced growth in all categories except electronics. Ecommerce revenue increased 7 percent to $632 million and rose to 47 percent from 45 percent of total U.S. revenue.

Adjusted OIBDA increased 2 percent to $306 million. Adjusted OIBDA margin decreased 26 basis points primarily due to lower shipping and handling revenue and higher personnel costs for severance, merit and benefits, which were partially offset by improved product margins and higher credit card income.

QVC’s consolidated revenue, which includes all its international networks, decreased 2 percent in the first quarter to $1.9 billion. Adjusted OIBDA decreased 1 percent to $407 million and adjusted OIBDA margin increased 26 basis points.

Operating income decreased 5 percent to $246 million. Consolidated eCommerce revenue increased 5 percent to $813 million in the quarter and was up 42 percent from 39 percent of consolidated revenue. Mobile orders were 52 percent of total eCommerce orders in the quarter, compared to 38 percent a year ago.

“Our first quarter results demonstrate the strength of our highly differentiated retail model,” QVC President and CEO Mike George said in a canned statement. “We expanded our eCommerce business with exceptional growth in our mobile penetration. We generated strong margin expansion, led by Germany and the UK. We invested in our U.S. leadership position with new shipping and handling polices and realized strong growth in new customers. We continue to expand our global presence as we prepare to launch in France this summer. We are well positioned to continue to define the next generation of retail.”

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