Posts Tagged ‘Greg Maffei’

QVC’s Parent Sells E-Commerce Unit To Florist FTD

July 31, 2014

QVC’s parent, Liberty Interactive Corp., did a big deal Wednesday. And it smells like a good one.

Liberty and FTD Cos. struck an agreement for the floral company to buy Liberty’s Provide Commerce floral and gifting businesses.

Under the terms of the $430 million transaction, Liberty will receive 10.2 million shares of FTD common stock representing 35 percent of the combined company and $121 million in cash. FTD and Liberty expect to complete the transaction by the end of the year.

How does this affect QVC?

Liberty plans to create two different tracking stocks, namely QVC Group as the umbrella for the home shopping network,Liberty’s stake in HSN; and Liberty Digital Commerce to represent e-commerce businesses such as Provide Commerce.

That stock split will now be delayed.

“Liberty Interactive still plans to create the QVC Group tracking stock, which will be comprised of its interests in QVC and HSN,” the company said in a press release.

“In light of the pending Provide Commerce transaction, and other factors, Liberty is reevaluating the optimal structure and best alignment of the Liberty Digital Commerce Group assets. As a result, the timing of the transition to the QVC Group has been delayed.”

Here is part of Liberty’s statement on its FTD deal.

The strategic combination of FTD’s brand and floral network with the Provide Commerce collection of established and highly recognizable consumer gifting e-commerce brands, which include ProFlowers, Shari’s Berries and Personal Creations, will further FTD’s vision to become the world’s leading and most trusted floral and gifting company.

The transaction will unite two highly complementary businesses, generate material cost synergies and create a team with “best-in-class” operating strategies.

Together, FTD and Provide Commerce, each with over $600 million in annual revenues, will offer consumers innovative and expansive floral and gift products and an enhanced shopping experience.

The combined company will also allow FTD to provide greater support for the overall floral industry by expanding resources to create new programs and services to support member florists in their local businesses.

“This transaction provides the opportunity to create significant value for our stockholders and offers immediate benefits for consumers and our premier network of member florists. The combination of these businesses will expand the breadth of our brands, provide opportunities to further diversify our revenue streams and open up additional avenues for growth and innovation,” said Robert S. Apatoff, President and Chief Executive Officer of FTD.

“We expect the combination with Provide Commerce’s highly recognizable and successful portfolio of brands to enhance our already robust consumer product offerings. In addition, we expect the transaction will provide us with greater resources to further develop new product and service categories and broaden our consumer demographic through complementary customer bases. We are excited about the opportunities this combination will create for consumers, member florists and our stockholders.”

“We are excited to become the largest shareholder in the complementary businesses of Provide Commerce and FTD,” said Gregory B. Maffei, President and CEO of Liberty. “FTD has an extensive florist network while Provide Commerce has a proven ability to source their flowers directly from top growers. The combined company will be able to offer comprehensive and unique gifting services in the U.S. and around the world.”

“FTD and Provide Commerce share a common mission and vision,” said Chris Shimojima, CEO of Provide Commerce. “Together we will create outstanding and delighting gifting experiences for our customers for all of life’s most important moments.”

Summary of Strategic and Financial Benefits

The transaction is expected to create one of the most diversified, established and trusted floral and gifting companies in the world. FTD believes the combination will provide the following strategic and financial benefits:

Deepens Consumer Gifting Category: The combination of Provide Commerce’s collection of respected and highly recognizable e-commerce brands, including ProFlowers, Shari’s Berries and Personal Creations, with FTD’s iconic brands, FTD and Interflora, and Mercury Man logo is expected to enhance FTD’s already robust consumer floral and gifting category.

Strengthens Floral Network: The expected efficiencies and greater resources of this combination will enable FTD to further invest in new products, services and technology that are expected to directly benefit its vast network of florists and the floral industry as a whole.

Enhances Consumer Shopping Experience: FTD will immediately be able to offer a wider selection of floral and gifting products, providing consumers with greater convenience and choice.

Provides Significant Cost Synergies: The combination is expected to generate more than $25 million in annual synergies within 36 months of closing, with a goal of creating incremental value for FTD stockholders over time.

QVC’s Parent To Release Fourth-Quarter Earnings Feb. 28

January 30, 2014

QVC’s parent, Liberty Interactive Corp., will report its fourth-quarter earnings Feb. 28.

Liberty Interactive President and CEO Greg Maffei will host a conference call to discuss results at 12:15 p.m. During the call, Maffei will discuss the company’s financial performance and outlook and may discuss the proposed creation of the QVC Group and Liberty Digital Commerce tracking stocks, as well as other forward looking matters.

Replays of the conference call can be accessed through 2:15 p.m. on March 7 by dialing (888) 203-1112 or (719) 457-0820 plus the passcode 7682293.

In addition, the fourth-quarter earnings conference call will be broadcast live via the Internet. All interested participants should visit the Liberty Interactive website at http://www.libertyinteractive.com/events to register for the webcast.

Links to the press release and replays of the call will also be available on Liberty Interactive’s website. The conference call and related materials will be archived on the website for one year.

QVC’s Revenue Rises 5 Percent In The Third Quarter

November 6, 2013

It’s that time of the year again: third-quarter earnings. And QVC on Tuesday reported that its revenue was up 5 percent, to $1.3 billion.

Domestic QVC’s sales rose “primarily as a result of strength in the home, accessories and beauty categories,” the home shopping network’s parent, Liberty Media Interactive, said in a press release.

The average selling price per unit increased 5 percent from $55.21 to $57.88 and units sold increased 1 percent compared to the prior-year third quarter.

Returns as a percent of gross product revenue improved 42 basis points “due primarily to lower product return mix within the categories,” the release said.

In the same period, QVC eCommerce revenue increased 12 percent to $535 million and grew to 41 percent from 39 percent as a percentage of total QVC net revenue.

Adjusted OIBDA increased 9 percent to $304 million and adjusted OIBDA margin(2) increased 86 basis points in the third quarter.

“Adjusted OIBDA margin increased primarily due to improved product margins, due in part to a favorable product mix, and favorable warehouse and freight expenses,” according to the press release.

“QVC again posted solid results in the U.S., while the international markets proved more challenging and were negatively impacted by currency fluctuations in Japan and the U.K.,” Liberty President and CEO Greg Maffei said in a canned statement.

QVC’s consolidated net revenue, which includes its domestic and international shopping networks, increased 2 percent in the third quarter to $1.9 billion. During the same period, adjusted OIBDA increased 3 percent to $408 million and operating income remained relatively flat at $259 million.

“QVC had strong results in the third quarter, and marked great success in the growth of our global TV and digital platforms,” QVC President and CEO Mike George said in a statement.

“We’ve expanded QVC’s audience reach to 290 million homes worldwide, and created new digital platforms that include the launch of toGather, our new social commerce platform. We’re delivering a unique shopping experience that is perfectly aligned with the megatrends that are reshaping the retail industry today.”

QVC And HSN To Post Third-Quarter Results In November

October 17, 2013

QVC’s parent, Liberty Interactive Corp., and HSN Wednesday announced that they will report their third-quarter earnings within a day of each other in November.

Liberty Interactive President and Chief Executive Officer Greg Maffei will host a conference call to discuss results for the third quarter Nov. 5 at 5:15 p.m.

During the call, Maffei will discuss the company’s financial performance and outlook and may discuss the proposed creation of the Liberty Digital Commerce Group tracking stock, as well as other forward-looking matters.

Please call Premiere Conferencing at (888) 437-9357 or (719) 325-2449 at least 10 minutes prior to the call.

Replays of the conference call can be accessed through 5:15 p.m. Nov. 12 by dialing (888) 203-1112 or (719) 457-0820 plus the passcode 2267905.

In addition, the third-quarter earnings conference call will be broadcast live via the Internet.

All interested participants should visit the Liberty Interactive website at http://www.libertyinteractive.com/events to register for the web cast. Links to the press release and replays of the call will also be available on the website. The conference call and related materials will be archived on the website for one year.

HSN, in turn, will release its third-quarter Nov. 6 at 8 a.m. before the market opens.

CEO Mindy Grossman and Judy Schmeling, Chief Operating Officer and Chief Financial Officer, will hold a conference call at 9 a.m. to review the results.

Those interested in participating in the conference call should dial 877-307-0246 or 224-357-2394 at least five minutes prior to the call.

There will also be a simultaneous audio webcast available via the company’s website at http://www.hsni.com. A replay of the conference call can be accessed until Wednesday, November 20, 2013 by dialing 855-859-2056 or 404-537-3406, plus the pass code 76016146 and will also be hosted on the company’s website for a limited time.

QVC’s Second-Quarter Sales Rise 3 Percent To $1.3 Billion

August 7, 2013

In the second quarter No. 1 home shopping network QVC posted a 3 percent increase in revenue, to $1.3 billion, boosted by the beauty and home categories, its parent reported Tuesday.

Last week HSN said that it registered net sales of $526.2 million in the second quarter, up 5 percent from the prior-year.

QVC, a unit of Liberty Interactive Corp., saw its average selling price per unit (“ASP”) increase 3 percent from $54.84 to $56.39, while units sold declined 1 percent compared to the prior-year second quarter. Returns as a percent of gross product revenue improved 72 basis points due primarily to changes in prior period estimates based on actual experience.

In the same period, QVC’s eCommerce revenue jumped 10 percent to $550 million and increased to 42 percent from 39 percent as a percentage of total QVC net revenue. Mobile penetration was 28 percent of QVC.com orders.

Adjusted OIBDA increased 2 percent to $320 million and adjusted OIBDA margin) decreased 22 basis points in the second quarter. Adjusted OIBDA margin decreased primarily due to higher inventory obsolescence and personnel costs as well as lower credit card income. These unfavorable drivers were partially offset by improved product margins.

“QVC posted solid results in the U.S., while the international markets proved more challenging and were negatively impacted by the currency fluctuations in Japan and the UK,” Liberty President and CEO Greg Maffei said in a canned statement.

“Our eCommerce companies built on their strong Q1 performance with continued revenue and adjusted OIBDA growth in Q2,” he said. “We repurchased $220 million of Liberty Interactive stock from May 1 to July 31, and $551 million year to date. Attributable to Liberty Ventures, TripAdvisor posted strong results as they successfully rolled out their hotel metasearch display.”

QVC’s consolidated net revenue, which includes the domestic network and several international home shopping channels,  decreased 1 percent  in the second quarter to $2 billion. During the same period, adjusted OIBDA decreased 1 percent to $434 million and operating income decreased 5 percent to $285 million.

“Second quarter results showed growth in new customers and continued strength in our digital platforms, despite a cautious consumer spending environment,” QVC President and CEO Mike George said. “eCommerce has grown to represent 37 percent of QVC’s global revenues, and of that, 30 percent of our eCommerce orders are from mobile devices. QVC has grown to become one of the world’s largest mobile commerce retailers, which is the result of how we’re working to change the way the world shops by reimagining shopping, entertainment and social as one.”

QVC’s international revenue in dollars decreased 6 percent in the second quarter to $649 million. The second-quarter results included the negative impact of the strengthening of the dollar against the Japanese Yen, and to a lesser extent, the UK Pound Sterling, which were somewhat offset by the weakening of the dollar against the Euro.

Adjusted OIBDA decreased 7 percent to $114 million and adjusted OIBDA margin decreased 15 basis points in the second quarter. In constant currency, QVC’s international revenue and adjusted OIBDA increased 2 percent and 4 percent, respectively.

QVC’s Parent To Post Second-Quarter Earnings Aug. 6

July 9, 2013

QVC’s parent, Liberty Interactive Corp., will host a conference call to discuss results for the second quarter on Aug. 6t at 1 p.m., Liberty said Monday.

Liberty Interactive President and CEO Greg Maffei, QVC honcho Mike George’s boss, will discuss the company’s financial performance and outlook.

Please call Premiere Conferencing at (888) 312-3051 or (719) 785-1748 at least 10 minutes prior to the call. Callers will need to be on a touch-tone telephone to ask questions. The conference administrator will provide instructions on how to use the polling feature.

Replays of the conference call can be accessed through 1 p.m. on Aug. 13 by dialing (888) 203-1112 or (719) 457-0820 plus the passcode 9911968.

In addition, the second-quarter earnings conference call will be broadcast live via the Internet. All interested participants should visit the Liberty Interactive website at http://www.libertyinteractive.com/events to register for the webcast.

Links to the press release and replays of the call will also be available on the Liberty Interactive’s website. The conference call and related materials will be archived on the website for one year.

QVC Big Kahuna Michael George Received $18.2 Million Paycheck Last Year

April 20, 2013

QVC Inc. top honcho Michael George took a $10 million cut in his executive compensation last year, bringing home a measly $18.2 million.

George’s salary and other comp was outlined in a filing by QVC’s parent, Liberty Medis Interactive, in a proxy statement filed with the Securities and Exchange Commission on Friday. The numbers are listed on page 44.

QVC President Michael George

QVC President Michael George

http://ir.libertyinteractive.com/secfiling.cfm?filingid=1047469-13-4596

George’s base salary was $1,030,000, reflecting a 3 percent increase over 2011.

His non-equity incentive plan comp jumped up, to $875,500 from $700,000. And all other compensation soared to $223,977 from $52,583.

The big dive in George’s compensation was in his stock option awards, which dropped to $16,110,136 from $27,867,300. If you want the complicated answer for that, you’ll have to look at the proxy.

By the way, the head of QVC’s parent Liberty Interactive, Greg Maffei, took home $45.3 million in executive compensation. Not bad for a year’s work.

QVC’s Revenue Rose 3 Percent Last Year, To $5.6 Billion

February 28, 2013

QVC was the second major home shopping network to report its fourth quarter and 2012 earnings, with revenue increasing 2 percent to $1.8 billion in the quarter and 3 percent to $5.6 billion for the year.

Last week HSN posted net sales of $2.27 billion for 2012, a 5 percent gain from the prior year.

“We see 2012 as a year highlighted by global expansion and mobile leadership for QVC,” QVC President and CEO Mike George said in a canned statement Wednesday.

“We expanded globally by launching a joint venture in China and ended the year reaching 48 million homes in China, up from 32 million at the start of the year. Additionally, we completed important foundation work that will prepare us for more rapid global expansion in the coming years. Furthermore, QVC is now recognized as an industry leader in mobile commerce. We’re truly changing the way the world shops — together with our loyal and expanding customer base.”

500-px-QVC-482x325

For domestic QVC, the fourth-quarter and full-year sales showed strength in home and beauty products, and full-year results also showed strength in apparel sales. For the fourth quarter and full year, these increases were partially offset by a decline in electronics and jewelry product sales.

Average selling price (ASP) increased 2 percent from $60.35 to $61.83 and units sold declined 1 percent compared to the prior-year fourth quarter. The return rate was relatively flat compared to the prior year. For the full year, ASP increased 3 percent from $55.74 to $57.52 and units sold remained flat.

Returns as a percent of gross product revenue increased 55 basis points due to the mix of products sold, namely apparel that returns at higher rates.

In the fourth quarter, eCommerce revenue increased 10 percent to $781 million and grew to 43 percent from 40 percent as a percentage of total U.S. net revenue. For the year, eCommerce revenue increased 12 percent to $2.2 billion and grew to 40 percent from 37 percent as a percentage of total U.S. net revenue.

Adjusted OIBDA increased 7 percent to $429 million in the fourth quarter and 5 percent to $1.3 billion for the year. Adjusted OIBDA margin(2) increased 109 basis points and 50 basis points for the fourth quarter and the full year, respectively. Adjusted OIBDA margin increased in the fourth quarter and full year due partially to a $20 million net favorable settlement that occurred in the fourth quarter.

For the full year, adjusted OIBDA margin was also positively impacted by an improved gross margin as a result of a favorable net shipping and handling position including warehouse productivity and a decrease in credit card processing fees due to a change in U.S. legislation associated with debit-card purchases resulting in lower fees charged to merchants.

QVC is part of Liberty Interactive Corp. Its consolidated results include all its international networks. QVC’s consolidated net revenue increased 2 percent in the fourth quarter to $2.7 billion and 3 percent to $8.5 billion for the year. Adjusted OIBDA increased 4 percent to $603 million in the fourth quarter and 5 percent to $1.8 billion for the year.

QVC Italy did particularly well.

“QVC Italy continues the trend upward with sequential fourth-quarter sales growth of 44 percent in local currency over the third quarter of 2012,” Liberty’s press release said.

“QVC Italy’s revenue increased 119 percent and 168 percent in local currency in the fourth quarter and the full year, respectively. QVC Italy’s sales were primarily from the cooking and dining, beauty and apparel product categories. The adjusted OIBDA deficit improved by 44 percent in the fourth quarter and 34 percent for the year. QVC Italy’s ASP in local currency increased 5 percent and 2 percent for the fourth quarter and the full year, respectively. Units shipped increased 111 percent in the fourth quarter and 171 percent for the full year.”

Liberty President and CEO Greg Maffei also chimed in.

“QVC continues to produce solid results, with significant growth in eCommerce and mobile revenue,” he said in his canned statement.

“We are proud that a new customer satisfaction survey from ForeSee ranked QVC as one of the top performing mobile eCommerce companies. We accelerated our repurchases of Liberty Interactive stock and bought $177 million worth of shares. Attributable to Liberty Ventures, we purchased additional shares of TripAdvisor acquiring voting control of the company.”

QVC’s Parent To Release Fourth-Quarter Earnings Feb. 27

January 31, 2013

QVC’s parent company, Liberty Interactive Corp., will release its fourth-quarter earnings on Feb. 27 at 5:30 p.m., the company said Wednesday.

Liberty Interactive President and CEO Greg Maffei will host the call, where he will discuss the company’s financial performance and outlook.

Please call Premiere Conferencing at (888) 487-0361 or (719) 325-2138 at least 10 minutes prior to the call.

Replays of the conference call can be accessed through 7:30 p.m. on March 6 by dialing (888) 203-1112 or (719) 457-0820 plus the passcode 8544178#.

In addition, the fourth-quarter earnings conference call will be broadcast live via the Internet.

All interested participants should visit the Liberty Interactive website at http://www.libertyinteractive.com/events to register for the web cast. Links to the press release and replays of the call will also be available on the Liberty Interactive website. The conference call and related materials will be archived on the website for one year.

QVC’s Third-Quarter Revenue Up 3 Percent Due To Cooking, Beauty And Apparel Categories

November 7, 2012

QVC’s revenue increased 3 percent, to $1.2 billion, in the third quarter as a result of strength in cooking and dining, beauty, apparel and accessories products, partially offset by a decline in electronics.

The home shopping network’s parent, Liberty Interactive Corp., announced its third-quarter earnings Wednesday.

QVC’s average-selling-price-per-unit increased 1 percent, from $54.49 to $55.21, and units sold increased 1 percent compared to the prior-year third quarter.

Last week HSN reported that its third-quarter net sales jumped 5 percent, to $537.4 million.

QVC’s consolidated revenue, which includes its domestic and international shopping channels, increased 2 percent, to $1.9 billion.

“QVC delivered strong results in the third quarter, with eCommerce continuing its double digit growth — now accounting for 33 per cent of global revenue,” QVC President and CEO Mike George said in a canned statement. “With mobile commerce orders up 96 percent globally, we see these results as clear confirmation that our strategy to create a highly immersive digital shopping experience, with strong integration across TV, PC, tablet and mobile platforms, is not only succeeding, but significantly outpacing the industry.”

QVC’s U.S. revenue rose 3 percent overall due to a 14 percent increase in shipping and handling revenue due, in part, to a price increase implemented in the fourth quarter last year.

Mike George

Third-quarter returns as a percent of gross product revenue remained relatively flat. In the same period, eCommerce revenue increased 14 percent to $479 million and grew to 39 percent from 35 percent as a percentage of total U.S. revenue. Adjusted OIBDA increased 7 percent to $278 million and adjusted OIBDA margin(2) increased 81 basis points.

The increase in adjusted OIBDA margin was primarily due to an improved gross margin as a result of a favorable net shipping and handling position including warehouse productivity, as well as lower commissions, credit card and customer service expenses as a percentage of revenue.

“QVC continues to produce strong results, especially on a constant currency basis, despite a challenging macroeconomic environment, and we are pleased with the performance of our newest market, China,” Liberty President and CEO Greg Maffei said in his canned statement.

“We successfully completed the recapitalization of the company’s common stock into two tracking stocks, which increased shareholder value by $2.6 billion,” he said. “Our share repurchases were lower this quarter, as we were out of the market for six weeks due to the recapitalization. But, we remain committed to repurchases at the Liberty Interactive Group and the board of directors has increased our repurchase authorization by $1 billion.”

QVC’s international revenue slipped 1 percent in the third quarter to $681 million. The third-quarter results included the negative impact of the strengthening U.S. dollar against the Japanese yen, euro and U.K. pound sterling.