Posts Tagged ‘Liberty Interactive Corp.’

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.

QVC’s 4Q Revenue Drops 7 Percent, To $1.9 Billion

March 1, 2017

The end of last year was tough going for home shopping networks.

On Tuesday QVC’s parent released fourth-quarter earnings, and the channel saw a dip in its sales, just like its rival HSN recently reported.

QVC’s U.S. revenue dropped 7 percent, to $1.9 billion in the fourth quarter and 2 percent, to $6.1 billion, in 2016, according to Liberty Interactive Corp.

“Internationally, QVC continues to perform well, while domestically we are focusing on strengthening a few merchandise categories that have been weak,” Liberty Interactive President and CEO Greg Maffei said in a canned statement.

HSN just had similar bad news to report. Its net sales dipped 1 percent, to $769.3 million, in the fourth quarter versus the prior year. In 2016, HSN’s sales were down 3 percent, to $2.5 billion.

QVC’s top honcho Mike George had a lot of ‘splaining to do. And he did.

“Our international segment generated strong results in the quarter with broad-based sales gains and margin expansion,” George said. “The sales trend in our U.S. business persisted from the third quarter primarily due to continued headwinds in select categories. We have strong action plans in place and are confident in our ability to return the US business to growth.”

“In 2016, we continued to significantly advance our digital platforms. eCommerce and mobile penetration grew approximately 260 and 800 basis points, respectively,” he said. “As we begin 2017, we are serving a large, engaged customer base, and we are creating competitive advantages as we further extend our reach across digital and next generation commerce platforms. We will leverage these strengths to build on our highly differentiated shopping experience.”

In the quarter, QVC’s average selling price per unit (“ASP”) decreased 8 percent to $56.78, units sold increased 1 percent, and returns as a percentage of gross product revenue improved 32 basis points. The U.S. experienced year-over-year declines in all categories except apparel.

For the year, ASP decreased 6 percent to $57, units sold increased 2 percent, and returns as a percentage of gross product revenue improved 104 basis points. Domestic QVC experienced year-over-year declines in jewelry, electronics and beauty, which were partially offset by gains in apparel, home and accessories.

E-commerce revenue decreased 1 percent to $1.1 billion and grew 326 basis points to 56 percent of total U.S. revenue in the quarter. For the year, e-commerce revenue increased 4 percent to $3.2 billion and rose 328 basis points to 52 percent of total U.S. revenue.

In the quarter, operating income decreased 15 percent to $303 million, operating income margin declined 143 basis points, adjusted OIBDA decreased 9 percent to $438 million and adjusted OIBDA margin declined 43 basis points, including the aforementioned cost allocations.

Excluding the cost allocations, adjusted OIBDA decreased 10 percent to $431 million and adjusted OIBDA margin declined about 80 basis points, primarily due to higher freight and warehouse expenses and lack of sales leverage.

For the year, operating income decreased 6 percent to $915 million, operating income margin declined 58 basis points, adjusted OIBDA decreased 2 percent to $1.4 billion and adjusted OIBDA margin was flat, including the aforementioned cost allocations.

Excluding the cost allocations, adjusted OIBDA decreased 4 percent to $1.4 billion and adjusted OIBDA margin decreased roughly 50 basis points, primarily due to lower product margins and higher bad debt, freight and warehouse expenses, which were partially offset by lower personnel expenses and favorable inventory obsolescence.

Beginning in the first quarter of 2016, QVC began allocating certain corporate costs for management reporting purposes differently, Liberty Interactive said in its press release.

Historically, QVC allocated these costs to the market from which the services were provided. As more of QVC’s costs support initiatives in multiple markets, QVC is allocating costs to the markets that will benefit from the expenditures. These management cost allocations are related to certain functions, such as merchandising, commerce platforms, information technology, human resources, legal, finance, brand and communications, corporate development and administration.

The cost allocations (from QVC U.S. to QVC International) totaled about $7 million in the fourth quarter and $31 million for 2016. As a result of the allocations, the U.S. segment’s operating income and adjusted OIBDA margins were each positively impacted approximately 35 basis points in the quarter and 50 basis points for the full year.

QVC’s Third-Quarter Sales Drop 6 Percent

November 8, 2016

Home shopping networks took a beating in the third quarter, with QVC seeing its revenue dive 6 percent, to $1.3 billion, just a day after HSN reported that its sales had slid.

The news about QVC, the dominant domestic shopping channel, was not surprising in at least one respect: Company honcho Mike George had warned in the second quarter that there revenue had slowed down and might take a tumble in the coming period.

HSN also had a rough go. Net sales for the third quarter were $569.7 million, a decrease of 3.5 percent from the prior year.

“The U.S. experienced declines in the electronics, beauty, jewelry and accessories categories, which were partially offset by gains in home and apparel,” QVC’s parent, Liberty Interactive Corp., said in a press release on Tuesday.

“eCommerce revenue increased 1 percent to $684 million and grew 342 basis points to 51 percent of total U.S. revenue,” the release said. “Operating income decreased 18 percent to $175 million, operating income margin declined 199 basis points, adjusted OIBDA decreased 8 percent to $308 million and adjusted OIBDA margin declined 43 basis points.”

Consolidated revenue for the QVC Group, which includes its domestic and international networks, was down 3 percent to $1.9 billion.

“We are benefiting from our diversified global model,” QVC President and CEO George said in a canned statement.

“While we are facing sales pressures in our U.S. business, we delivered local currency sales gains in every non-U.S. market in the quarter. We are responding to the immediate domestic challenges through a series of strategies to drive more balanced growth across our categories, consistently deliver exceptional customer experiences, offer outstanding values, accelerate new customer acquisition, and lower operating costs.”

He added, “And last week we were thrilled to launch Beauty iQ, the first multi-platform shopping network dedicated exclusively to beauty. These actions demonstrate our confidence in the long-term health of our unique retail model.”
QVC has now centralized many of its corporate functions in Poland, creating the network calls its “ONE Q organizational structure.

The goal is to “better leverage its global scale and capabilities, to enhance its competitive position and to create operational efficiencies,” the press release said.

Then it went on with this gobble-gook to explain the financial impact of this change. Maybe you can make heads or tails of it, cause we sure can’t.

Beginning in the first quarter of 2016, QVC began allocating certain corporate costs for management reporting purposes differently. Historically, QVC allocated these costs to the market from which the services were provided.

Now, as more of QVC’s costs support initiatives in multiple markets, QVC is allocating costs to the markets that will benefit from the expenditures. These management cost allocations are related to certain functions, such as merchandising, commerce platforms, information technology, human resources, legal, finance, brand and communications, corporate development and administration.

The cost allocations (from QVC U.S. to QVC International) totaled approximately $8 million in the third quarter and are expected to approximate $32 million in 2016.

As a result of the allocations, the US segment’s operating income and adjusted OIBDA margins were each positively impacted 60 basis points and the international segment’s operating income and adjusted OIBDA margins were negatively impacted 131 basis points in the third quarter.

There was no impact to consolidated operating income and adjusted OIBDA margins. With the completion of the ONE Q implementation, QVC’s financial disclosure is consistent with the way it evaluates its business performance and manages its operations.

Regarding domestic QVC, “The third quarter included the aforementioned cost allocations from ONE Q, which were mostly offset by approximately $7 million of severance expense. The results primarily reflect lower product margins and higher warehouse costs, which were partially offset by favorable inventory obsolescence and lower bonus and benefit expenses of approximately $10 and $8 million, respectively, and higher credit card income.”

Also for QVC domestic, the average selling price per unit (“ASP”) decreased 7 percent to $54.75, units sold decreased 1 percent, and returns as a percentage of gross product revenue improved 170 basis points.

QVC’s Parent To Webcast Nov. 11 Investor Meeting

October 11, 2016

For QVC customers who are really interested in the home shopping network’s inner workings — in other words, gluttons for punishment — the channel’s parent company will webcast its annual investor meeting Nov. 10.

Liberty Interactive Corp. announced the news on Tuesday.

The annual investor meeting will be held in New York City. If you are interested in attending, please register at https://reg.libertyexperience.com/.

The webcast will begin at 12:15 p.m. with presentations from Liberty Interactive and its units immediately followed by the annual investor meeting of Liberty Broadband Corp.

All interested persons should visit the Liberty Interactive website at http://www.libertyinteractive.com/events to register for the webcast. An archive of the webcast will also be available for one year after appropriate filings have been made with the SEC.

QVC will be one of the companies presenting in the afternoon.

QVC’s Parent To Release Third-Quarter Results Nov. 8

October 8, 2016

QVC’s parent company, Liberty Interactive Corp., will report third-quarter earnings Nov. 8, John Malone’s empire announced Friday.

Liberty President and CEO Greg Maffei will host a conference call to discuss results at noon that day.

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. This is when QVC honcho Mike George usually chimes in.

During the call, Maffei may discuss the financial performance and outlook of both companies, as well as other forward looking matters including the proposed split-off of Liberty Expedia Holdings Inc.

To those interested, call ReadyTalk at (844) 307-2219 or (678) 509-7635 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.

In addition, the third-quarter 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 webcast. Links to the press release and replays of the call will also be available on the Liberty Interactive Corporation website.

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.

QVC Sales Up Slim Two Percent, Outlook Gloomy

August 6, 2016

The major domestic home shopping networks are having a tough year.

Liberty Interactive Corp., QVC’s parent, reported its second-quarter earnings on Friday. QVC did better than HSN, but gloomy honchos at the West Chester-based channel warned that sales really slowed down at the end of the quarter, echoing the challenges that brick-and-mortar retailers are facing.

“QVC continues forward in a choppy retail environment,” said Greg Maffei, Liberty Interactive president and CEO.

QVC’s U.S. revenue rose 2 percent to $1.4 billion in the second quarter versus the prior year. HSN, which reported its earnings on Thursday, saw its net sales for the quarter drop 3 percent, to $557.2 million.

“Beginning in early June QVC’s U.S. sales began to experience significant headwinds, which have continued,” Liberty said in its press release.

“The sales declines, as compared to prior periods, have averaged in the mid- to high- single-digit percentages. QVC has developed many initiatives intended to reverse the negative trends and QVC is optimistic, although there is no guarantee, that these actions will have a positive effect. However, even if these initiatives begin to reverse these trends, it is believed that QVC’s U.S. net revenue and adjusted OIBDA will likely experience negative growth rates for the third quarter.”

In other words, QVC’s sales will likely be down in the 3Q. QVC President and CEO Mike George had the same bad news.

“We reported solid second-quarter results, with good sales growth in most markets,” he said.

“Late in the quarter, we experienced a deceleration in demand in the U.S. that has continued. As a result, our near-term perspective is more cautious. Longer term, we remain well-positioned with our highly differentiated retail model, strong customer retention, and our ability to deliver compelling experiences across immersive commerce platforms.”

In the second quarter, QVC units sold increased 4 percent, average selling price per unit (“ASP”) decreased 3 percent to $56.60 and returns as a percentage of gross product revenue improved 82 basis points.

QVC saw growth primarily in the apparel and accessories categories, which was partially offset by declines in jewelry and electronics.

E-commerce revenue increased 11 percent to $727 million and grew more than 400 basis points to 51 percent of total U.S. revenue.

QVC’s international revenue increased 7 percent to $635 million in the second quarter.

QVC Parent To Release Second-Quarter Results Aug. 5

July 7, 2016

Liberty Interactive Corp., QVC’s parent, will post its second-quarter earnings Aug. 5, the company said this week.

Liberty President and CEO Greg Maffei will host a conference call to discuss results at 12:15 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.

During the call, Maffei may discuss the financial performance and outlook of both companies, as well as other forward looking matters.

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 website. The conference call and related materials will be archived on the website for one year.

QVC Reports 5 Percent Sales Gain, To $1.4 Billion

May 10, 2016

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.

http://seekingalpha.com/article/3973352-liberty-interactive-qvca-gregory-b-maffei-q1-2016-results-earnings-call-transcript?part=single

“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.

QVC Bigwig Mike George’s $19.7 Million Paycheck

April 30, 2016

From what we can tell, 2015 was a very, very good year for QVC President and CEO Mike George.

He received $19.7 million in executive compensation, up from a piddling $2 million in 2014 and $1.2 million in 2013, according to a filing the home-shopping empire’s owner, Liberty Interactive, made with federal regulators this week.

That’s a lot of greenbacks!

http://ir.libertyinteractive.com/secfiling.cfm?filingid=1104659-16-115464&CIK=1355096

George’s base salary last year was $1.1 million. Most of his sizable compensation came in the form of $17.5 million in option awards.

George made more money last year than his boss, Liberty President and CEO Greg Mafffei, whose executive comp was $14.8 million.

George also did a lot better than HSN CEO Mindy Grossman, whose executive comp was $4.9 million in 2015.

QVC’s Parent To Webcast Annual Investor Meeting Nov. 12

October 15, 2015

Want to hear what QVC honchos are telling Wall Street? Then tune into this.

The home shopping network’s parent company, Liberty Interactive Corp., will webcast its annual Investor Meeting Nov. 12, with presentations beginning at 9 a.m.

During these presentations, observations may be made regarding the company’s financial performance, outlook and recent developments.

The presentation will be broadcast live via the Internet.

All interested persons should visit the Liberty Interactive Corporation website at http://www.libertyinteractive.com/events to register for the webcast.

An archive of the webcast will also be available on this website for one year.