Posts Tagged ‘Liberty Interactive Corp.’

QVC Honcho Made $7.7 Million Last Year

April 11, 2018

It’s that time of the year, proxy time, when we tear out our hair wishing we had become big company honchos rather than ink-stained wretches. So wanna guess how much the QVC bigwig Mike George raked in last year?

According to a filing with the SEC on Monday, last year the QVC president and CEO received $7.7 million in executive compensation, a big increase over his $5.4 million in 2016. In 2017 he had a base salary of $1.25 million, $4.3 million in stock awards, $2 million in non-equity incentive plan comp and a piddling $171,000 in other comp, chump change.

http://ir.libertyinteractive.com/secfiling.cfm?filingID=1047469-18-2656&CIK=1355096#A2235222ZPRE14A_HTM_H48

Here’s a bit about his employment arrangement:

On September 27, 2015, the compensation committee approved a new compensation arrangement with Michael A. George, the President and Chief Executive Officer of QVC. The arrangement provides for a five year employment term beginning December 16, 2015 and ending December 31, 2020, with an annual base salary of $1.25 million and an annual target cash bonus equal to 100% of Mr. George’s annual base salary.

The arrangement also provides Mr. George with the opportunity to earn annual performance-based equity incentive awards during the employment term, as described in more detail below. In connection with the approval of his compensation arrangement, Mr. George was granted the 2015 Term Options with respect to shares of QRTEA, also as described in more detail below. Mr. George’s compensation arrangement was memorialized in the George Employment Agreement executed on December 16, 2015.

Following its acquisition of HSN, Liberty Interactive Corp. is being renamed Qurate Retail Inc. It will hold a conference call to discuss its first-quarter results May 10 at 11 a.m.

Following prepared remarks, the company will host a brief Q&A session during which management will accept questions regarding Qurate.

The call will be broadcast live via the internet. All interested participants should visit the Qurate 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 Qurate website. The conference call will be archived on the website for one year after appropriate filings have been made with the SEC.

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QVC Parent To Post 4Q Results March 1

February 9, 2018

Liberty Interactive Corp., QVC’s parent company, will announce its fourth-quarter earnings March 1.

Liberty President and CEO Greg Maffei will host a conference call to discuss the results at 11 a.m.

Following prepared remarks, the company will host a brief Q&A session during which management will accept questions regarding both Liberty Interactive and Liberty TripAdvisor Holdings.

During the call, Maffei may discuss the financial performance and outlook of both companies, as well as other forward looking matters including the proposed acquisition of General Communication Inc. by Liberty Interactive, its combination with Liberty Ventures Group and the subsequent split-off of Liberty Interactive’s interest in the combined company.

Please call ReadyTalk at (866) 548-4713 or (323) 794-2093, passcode 9151576, at least 10 minutes prior to the call.

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

All interested participants should visit the Liberty 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 website. The conference call will be archived on the website for one year after appropriate filings have been made with the SEC.

About Liberty Interac

QVC Posts 3% Sales Increase In Third Quarter

November 10, 2017

Holy crow! QVC had a 3 percent revenue increase in the third quarter, to $1.4 billion, its parent company Liberty Interactive Corp. reported Thursday. This is after several quarters when sales were down.

The dominant domestic home shopping networks also posted a 14 percent rise in its operating income.

“QVC had an excellent quarter, growing constant currency revenue and adjusted OIBDA in every market,” Liberty President and CEO Greg Maffei said in a statement. “We made progress on the acquisition of HSN and expect to close in the fourth quarter.”

QVC saw year-over-year gains in the apparel, beauty, accessories and electronics categories in the third quarter.

But the home category was essentially flat and jewelry declined, according to Liberty.

The average selling price declined 4 percent in the quarter, “primarily driven by product mix within the electronics category, as several successful items sold in the quarter carry lower price points than items sold in the prior year,” Liberty said in its press release.

“We are very pleased with our strong results,” QVC President and CEO Mike George said in a statement.

“Our U.S. business returned to growth and our international segment continued its solid momentum,” he said. “Our performance demonstrates our ability to execute our strategic initiatives to improve product freshness and discovery, leverage our commerce content across platforms, increase customer engagement and attract new customers. We remain excited about the pending transaction to acquire HSNi and the formation of the new QVC Group.”

In the quarter QVC’s number of new customers increased 7 percent.

“As noted last quarter, the U.S. business experienced a systems outage late in the second quarter of 2017, which resulted in an estimated 1 percent shift in net revenue to the third quarter,” Liberty said.

No Call For HSN Third-Quarter Results

October 20, 2017

HSN will release its third-quarter earnings Nov. 8, the network said this week.

“Due to the pending acquisition of HSNi by Liberty Interactive Corp.QVC Group, HSNi will not hold a conference call to review these results,” the press release said.

Public companies typically hold conference calls with Wall Street analysts when they announce their quarterly earnings. This is the first time we recall a company not doing one.

QVC’s Parent To Report Third-Quarter Results Nov. 9

October 10, 2017

QVC’s parent company, John Malone’s Liberty Interactive Corp., will post its third-quarter earnings Nov. 9, the companies said Monday.

Liberty Interactive President and CEO Greg Maffei, will host a conference call to discuss results at 11 a.m.

Following prepared remarks, the company will host a brief Q&A session during which management will accept questions regarding both Liberty Interactive and Liberty TripAdvisor Holdings.

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 Liberty Interactive website. The conference call will be archived on the website for one year after appropriate filings have been made with the Securities and Exchange Commission.

HSN 2Q Sales Dip 4 Percent, To $532.2 Million

August 4, 2017

Looks like the second quarter another was a tough one for home shopping networks.

On Thursday HSN reported that its net sales for the quarter were $532.2 million, a 4 percent drop from the prior year. Sales grew in wellness and home, offset by decreases in electronics, beauty and jewelry.

The earnings press release talked about Liberty Interactive Corp.’s pending acquisition of HSN.

“We continue to focus on building our proprietary product pipeline which we believe will ultimately lead to growth in the business,” HSN Inc. Chief Financial Officer Rod Little said in a canned statement. “The continued strength of digital sales, and mobile sales in particular, has been very encouraging with digital sales now representing 55% of our total revenue. Mobile, which we see as our flagship, continues to be our fastest growing sales channel and a source of new customer acquisition.”

“As we prepare for the pending acquisition by Liberty, we remain committed to our strategies to improve performance both in the short and long term,” he said. “Our key priorities remain: acquiring and retaining customers via a robust and relevant product portfolio, optimizing our digital platforms and improving efficiencies throughout the business, all to drive consistent shareholder value creation.”

The No. 2 home shopping network said shipping revenue decline primarily due to the August 2016 changes in the standard shipping rates and increased promotions. The average price point decreased 7 percent, while units shipped increased 2 percent largely due to changes in product mix, according to the press release.

Gross profit decreased 5 percent to $186.8 million. Gross profit rate decreased 30 basis points to 35.1 percent, primarily due to a decrease in shipping revenue and higher shipping and fulfillment costs, partially offset by higher product margins and lower inventory reserves due to a change in accounting estimate.

The increase in shipping and fulfillment costs was primarily due to annual outbound rate increases and implementation costs associated with HSN’s ongoing supply-chain optimization initiative, the network said.

Operating expenses increased 4 percent to $147.6 million driven by about $3.7 million in transaction costs related to the merger agreement, an increase in employee-related costs, higher costs incurred as part of the supply-chain O initiative and an increase in bad debt expense, partially offset by lower stock-based compensation expense primarily due to the departure of CEO Mindy Grossman during the quarter.

Excluding non-cash charges and transaction costs, operating expenses increased 4 percent and were 25.6 percent as a percentage of net sales compared to 23.5 percent in the prior year.

Operating income decreased $15.9 million, or 29 percent, to $39.2 million. Adjusted EBITDA decreased $15.8 million, or 24 percent, to $50.5 million. The supply-chain implementation resulted in an additional $2.9 million of costs in the second quarter, which impacted gross profit and operating expenses.

HSN, QVC’s Parent To Report 2Q Earnings

July 15, 2017

HSN Inc., about to be swallowed up by QVC’s parent company, as well as that parent, Liberty Interactive Corp., will be releasing their second-quarter results early next month, both companies announced this week.

HSN will report its second-quarter earnings Aug. 3 at 8 a.m., before the market opens.

Chief Financial Officer Rod Little; Bill Brand, chief marketing officer of HSNi and president of HSN; and Judy Schmeling, chief operating officer of HSNi and president of Cornerstone Brands, “who together constitute the Office of the CEO,” will hold a conference call at 9 a.m. to review these 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 Aug. 17 by dialing 855-859-2056 or 404-537-3406, plus the pass code 54744987 and it will also be hosted on the company’s website for a limited time.

Liberty Interactive President and CEO Greg Maffei will host a conference call to discuss results for the second quarter Aug. 8, at 2:30 p.m.

Following prepared remarks, the company will host a brief Q&A session during which management will accept questions regarding both Liberty Interactive Corporation and Liberty TripAdvisor Holdings.

Maffei may discuss the financial performance and outlook of both companies, as well as the proposed acquisition of HSN.

The second-quarter earnings conference call will be broadcast live via the internet. All interested participants should visit the Liberty 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 website, and the conference call will be archived ror one year after appropriate filings have been made with the SEC.

What Does HSN’s Sale To QVC’s Parent Mean?

July 10, 2017

We’ve been busy at work, and in addition to that we wanted time to mull over Liberty Interactive Corp.’s purchase of HSN Inc. before we blogged in more detail about it.

For some reason we couldn’t find the conference call that Liberty and HSN honchos held on the deal last week, even though it was supposed to be archived on John Malone’s fiefdom’s website. But we did finally read through the slide-show presentation that went with the call.

http://files.shareholder.com/downloads/AMDA-GY7JI/4764467488x0x948623/652F4347-6F0B-48D9-9D4B-2EE0E92881D2/QVC_HSN_Investor_Presentation.pdf

First of all, the initial press release on QVC’s parent paying $2.1 billion for HSN was unclear, in that it did not spell out that there were no plans to merge the nation’s two largest home shopping networks. The investor slide presentation did bring clarity, saying that QVC and HSN will be maintained as distinct brands, which means five channels — QVC, QVC2, BeautyiQ, HSN and HSN2.

The goal is to preserve the “unique identities, cultures and customer following” for the networks.

But at the same time, according to the presentation, the plan is to “optimize five U.S.- based networks (QVC, QVC2, BeautyiQ, HSN, HSN2) and create complementary programming.”

Okey-dokey. Sounds a little contradictory to us.

The other goals are, straight from the presentation, to:

Collaborate on best-in-class digital platforms (mobile, personalization, social, marketing) and next-gen shopping innovations

Extend HSN’s Shop by Remote platform to QVC

Strengthen brand portfolios

Extend top HSN brands to QVC International and Zulily,

Leverage Zulily as brand feeder with younger customers, utilize QVC global development
capabilities

Explore cross-marketing opportunities to better engage existing and potential customers

Share best practices and tools, leverage top talent and create new professional-growth opportunities

Pursue integration opportunities to enable combined company to operate more efficiently,
fund innovation and enhance customer value, including:

Combining technology platforms where appropriate

Leveraging enhanced scale of supply chain and customer service networks

Eliminating redundant corporate and support services

Reducing costs through purchasing synergies

So we can expect to see HSN brands expand globally and pop up on QVC’s numerous international channels.

There were some very interesting additional facts in the presentation, as well. QVC has 8 million customers, and 6 million of them don’t shop at HSN today, according to Liberty. We find that hard to believe, since we shop at both nets and Evine as well, but that’s what they said. HSN has 5 million customers.

By cross-marketing, QVC can try to get some of HSN’s customers to shop with it.

QVC has 29 on-air hosts, while HSN has 24, just FYI.

And of course, whenever one company buys another one there is always talk of synergies, which basically means people are going to lose their jobs. In this acquisition, there’s a lot of places where QVC and HSN have overlap and where cost-cutting can happen. A lot of it may be behind the scenes, however.

For example, cable networks have what are called affiliates sales departments, the executives and sales reps who negotiate the contracts for QVC and HSN to get carried on your cable system or by your DBS provider, be it Comcast or DirecTV. You won’t need two affiliate sales departments to handle that function.

And with QVC and HSN under one roof, whoever survives in affiliate sales will now have a bundle of five networks it can bring to cable companies. Just like a Discovery Communications with its many networks or a Viacom, the QVC-HSN affiliate sales reps can tell a Comcast that if it carries smaller startup channels like BeautyIQ, it will get a better deal on the larger channels, QVC and HSN.

There are other “synergies.” Some vendors supply goods to several home shopping networks. One of our readers recently reported that she had ordered bedding from Paula Deen’s line on Evine, but when the order came it was Northern Lights, as we recall, which is sold by QVC. The point is that one manufacturer is making items for both channels.

Vendors who manufacture goods for QVC and HSN might get squeezed, with Liberty trying to negotiate much cheaper deals because it has leverage as a major customer of such companies.

The big advantage of this merger, as everyone and their mother has pointed out, is that this will increase QVC’s and HSN’s scale as digital players, putting them in a better position to compete against giant Amazon. The digital sales of both those home shopping channels have soared over the past few years, and with distribution centers and those of their sister companies, Zulily and Cornerstone, they gain traction against the big “A.”

HSN and its Cornerstone unit have warehouses in cities such as Piney Flats, Tenn., Fontana, Calif., Roanoke, Va., Monroe, Ohio, and Scottsdale, Ariz.

For QVC and Zulily, there are fulfillment centers Rocky Mount, N.C., Florence, S.C., Suffolk, Va., Ontario, Calif., Lancaster and Bethlehem, Penn., McCarran, Nev., and Lockborne, Ohio.

Liberty needs a lot of distribution points to beat Amazon at its own quick-delivery game, but are all the above too many? We’ll see.

Liberty crowed about HSN in its presentation, saying that it brings a “rich legacy of innovation” to the QVC Group.

Liberty cited HSN’s “highly engaging programming and events, including movie tie-
Ins” and “American Dreams entrepreneur search series.”

There was also a shout-out to HSN’s leading brands, including Joy Mangano’s
Ingenious Designs, Andrew Lessman’s ProCaps Laboratories, IMAN Global Chic, Jennifer Flavin Stallone’s Serious Skincare, Wolfgang Puck Kitchen, Diane Gilman
Fashion and the Concierge Collection.

QVC’s top honcho, Mike George, will ride herd over the new and larger QVC Group.
But what will happen with the top management at HSN?

Former CEO Mindy Grossman has flown the coop, already starting her new gig at Oprah Winfrey’s Weight Watchers. Bill Brand is a very talented HSN honcho, and we hope he’s in line for a promotion to fill Grossman’s high-heels.

QVC To Buy HSN In $2.6 Billion Merger

July 6, 2017

You may have to kiss goodbye to a lot of your favorite hosts and vendors at the two top home shopping networks, because QVC’s parent company is buying HSN.

At first blush, it appears that Liberty Media Interactive Corp. will keep both QVC and HSN operating as two separate channels, but John Malone’s company anticipates cost savings, and that that usually translates to people losing jobs. Believe us, we know firsthand. But we have not listened to the conference call on the deal yet to be sure.

The huge news was announced Thursday morning, coincidentally just a day after HSN bigwig Mindy Grossman started her new gig at Oprah Winfrey’s Weight Watchers.

http://ir.libertyinteractive.com/releasedetail.cfm?ReleaseID=1032273

http://www.philly.com/philly/business/qvc-home-shopping-network-merge-20170706.html

The acquisition gives Liberty a portfolio of five domestic home shopping channel, namely QVC, QVC2, BeautyiQ, HSN and HSN2.

The all-stock deal is valued at $2.6 billion, with Liberty acquiring the 62 percent of HSN Inc. it doesn’t own. Liberty will offer compensation of $2.1 billion in shares, but the press release says there will be $2.6 billion of “total enterprise value,” whatever that means.

“We are excited to announce the acquisition of HSNi,” Liberty CEO Greg Maffei said in a canned statement.

“The addition of HSN will enhance QVC’s position as the leading global video eCommerce retailer. Every year they together produce over 55,000 hours of shoppable video content and have strong positions on multiple linear channels and OTT [over the top] platforms. The value of the combined QVC, HSNi and zulily will be further highlighted when later this year QVC Group becomes an asset-backed stock as part of the previously announced split-off of Liberty Ventures.”

Here’s what smiling QVC honcho Mike George had to say in the press release.

“We’re thrilled to welcome the HSNi team to our company,” he said.

“HSNi founded the industry 40 years ago and helped it grow with exciting initiatives like Shop By Remote and media integrations with leading content producers. By creating the leader in discovery-based shopping, we will enhance the customer experience, accelerate innovation, leverage our resources and talents to further strengthen our brands, and redeploy savings for innovation and growth. As the prominent global video commerce retailer and North America’s third largest mobile and eCommerce retailer, the combined company will be well-positioned to help shape the next generation of retailing.”

Here’s what Liberty says the benefits of the deal are: increase scale, enhancing the competitive position of QVC Group; meaningful synergies through cost reduction and revenue growth opportunities; increased development of eCommerce, mobile and OTT platforms; optimize programming across five U.S. networks; cross marketing to better engage existing and potential customers; financial optionality due to HSNi’s lower debt leverage.

HSNi consists of HSN and Cornerstone, which includes Ballard Designs, Frontgate, Garnet Hill, Grandin Road and Improvements.

Post-closing of the deal, expected in the fourth quarter, HSNi headquarters will remain in St. Petersburg and will be overseen by George.

“Joining the QVC Group will give us instant access to global consumer markets, a leadership team with deep expertise and a global perspective, and the opportunity to further strengthen our content-based brand portfolios in a changing retail landscape,” said Arthur Martinez, HSN’s board chairman.

“We have both been innovators in a growing and dynamic retail environment with a unique vision of what shopping should be, and as new technologies continue to change our everyday lives, together we can develop the next generation of shopping for the next generation of consumers.”

Maffei and George discussed the transaction in a conference call this morning, which will be archived on Liberty’s website. To access the webcast go to http://www.libertyinteractive.com/events.

We can’t listen now, but will later and report back.

QVC’s Parent To Report First-Quarter Results May 9

April 12, 2017

Liberty Interactive Corp., parent of QVC, will post its first-quarter earnings on May 9, the company said on Tuesday.

President and CEO Greg Maffei will host a conference call to discuss the results at 10:30 a.m.

Following prepared remarks, the company will host a brief Q&A session when management will accept questions regarding both Liberty Interactive Corporation and Liberty TripAdvisor Holdings.

During the call, Maffei may discuss the financial performance and outlook of both companies, as well as other forward looking matters including the proposed acquisition of General Communication Inc., its combination with Liberty Ventures Group and the subsequent split-off of Liberty Interactive’s interest in the combined company, GCI Liberty.

Call ReadyTalk at (844) 307-2219 or (678) 509-7635 at least 10 minutes prior to the call.

In addition, the first-quarter earnings conference call will be broadcast live online 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 Liberty’s The conference call and related materials will be archived on the website for one year after appropriate filings have been made with the Securities and Exchange Commission.