QVC Sees 4 Percent Gain, To $1.4 Billion, In Third-Quarter Sales

Following on the heels of HSN’s report, QVC announced Wednesday that its revenue increased 4 percent to $1.4 billion in the third quarter versus last year.

Earlier in the day, HSN said that its net sales in the quarter rose 2 percent, to $590.6 million, which was below Wall Street’s projections.

At the No. 1 domestic home shopping network, part of Liberty Interactive Corp., units sold rose 5 percent; average selling price per unit increased 1 percent to $58.70; and returns as a percentage of gross product revenue increased 21 basis points.

QVC U.S. experienced growth in the apparel, accessories, home and beauty categories, which was partially offset by a decline primarily in jewelry.

Ecommerce revenue increased 15 percent to $678 million and was up 48 percent from 43 percent of total QVC revenue.

Adjusted OIBDA increased 1 percent to $333 million and adjusted OIBDA margin decreased 55 basis points to 23.5 percent. These results were primarily due to higher freight and inventory obsolescence expense, which were partially offset by higher product margins and lower bad debt expenses.

“QVC generated strong results across the board with local currency growth in all consolidated markets for the second quarter in a row,” Liberty Interactive President and CEO Greg Maffei.

“The expansion in mobile orders continues at a rapid pace, comprising 53 percent of consolidated ecommerce orders,” he said. “We completed the acquisition of Zulily and have already begun introducing its customers to QVC.”

The entire QVC group, which includes Liberty Interactive’s many international home shopping networks, saw its consolidated revenue drop 1 percent, to $2 billion.

“U.S. dollar denominated results were negatively impacted by exchange rate fluctuations in the third quarter,” QVC said in its press release.

The Dollar strengthened against the Euro, Japanese yen and British pound sterling 16 percent, 15 percent and 7 percent, respectively.

On a constant currency basis, consolidated revenue increased 4 percent and adjusted OIBDA increased 1 percent compared to a 1 percent and 2 percent decline in dollars, respectively.

Excluding the costs related to launch QVC France, consolidated adjusted OIBDA increased 3 percent on a constant-currency basis in the quarter.

“We delivered strong constant currency revenue gains across markets as we continued to execute our strategies to extend our leading global video and eCommerce position,” QVC President and CEO Mike George said.

“We expanded our commerce platform reach with additional TV carriage and increased digital penetration, and mobile orders now represent over 50% of all eCommerce orders,” he said.

“We enhanced our merchandise differentiation with key brand launches and leverage of our global vendor network. Our joint venture in China generated outstanding results, and on October 1st we welcomed Zulily to the QVC Group, extending our reach to millennial customers.”

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One Response to “QVC Sees 4 Percent Gain, To $1.4 Billion, In Third-Quarter Sales”

  1. Don Says:

    So you have some of the worst management, a CEO who preaches values but speaks out of both sides of his mouth while earning millions and laying of decent workers living paycheck to paycheck Do you want to know what Bernie Sanders is harping about, QVC and Liberty Media are exhibit one.

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