QVC’s revenue rose 5 percent to $1.4 billion in the first quarter, with operating income increasing by 14 percent, the home shopping network’s parent, Liberty Interactive Corp., reported Monday.
The domestic channel saw growth in the apparel, accessories and home categories, which was partially offset by declines in jewelry and electronics.
That compares to the 4 percent sales slide, to $578.4 million, that HSN just posted for the first quarter.
“Our fashion businesses continue to be a key driver of growth globally,” QVC President and CEO Mike George told analysts, according to a transcript from Seeking Alpha.
“We had terrific success with proprietary designer brands such as LOGO by Lori Goldstein, Susan Graver and Lisa Rinna in the U.S.,” he said. “Our fashion businesses continue to be a key driver of growth globally. We had terrific success with proprietary designer brands such as LOGO by Lori Goldstein, Susan Graver and Lisa Rinna in the U.S. Our strong performance in accessories was driven by footwear including Vionic, Skechers and Clarks, the resurgence of the swimwear business and intimate apparel. We had several successful fashion launches in the quarter, most notably the debut of C. Wonder on an exclusive basis.”
George also talked about QVC’s partnership with NBC’s “Today Show.”
“This time, we’ve focused our attention on mom entrepreneurs, and nine of the best entrants made it to a week-long series on the ‘Today’ show, where viewers picked their favorite products,” he said. “And the winner, Krista Woods, sold out her product in a few minutes, GloveStix, on our Saturday morning program.”
On the jewelry front, George said,”Jewelry continues to be soft globally. We saw continued declines in the bronze, gold and silver categories, and we continue to refocus assets into better performing categories such as our proprietary Diamonique and Affinity brands. And we’ll be adding a number of new designer brands later this year such as Stella & Dot, Mario Buccellati, Jane Taylor and Franco P.”
QVC’s e-commerce revenue increased 10 percent to $698 million and was up to 50 percent of total U.S. revenue in the quarter from 47 percent a year ago.
Units sold increased 7 percent, the average selling-price-per-unit decreased 3 percent to $60.03 and returns as a percentage of gross product revenue improved 184 basis points.
“We generated very solid top-line growth, with local currency gains in nearly every market,” George said.
“We continued to benefit from our strategies and investments to enhance and extend the reach of our commerce platforms,” he said. “We delivered double-digit gains for both consolidated e-commerce revenue and mobile orders. Our top-line performance and the continued expansion of our commerce platforms demonstrate how strongly the QVC brand resonates with consumers.”
Greg Maffei, Liberty Interactive president and CEO, also gave QVC a shoutout.
“QVC generated another strong quarter of revenue growth, particularly in the US, and posted impressive increases in mobile penetration of orders in the US and on a consolidated basis,” he said. “Zulily started off strong in 2016 with accelerating revenue growth and a six-fold increase in adjusted OIBDA on strong operational execution.”
For the quarter, the QVC Group, which includes all the company’s international home shopping network, saw its revenue increase 22 percent to $2.4 billion and its operating income decreased 13 percent to $206 million.