Posts Tagged ‘Michael George’

QVC, HSN Sales Decrease 4% In Third Quarter

November 12, 2019

The tough times keep coming for QVC and HSN, which are both owned by Qurate Retail Inc.

In the third quarter revenue for QxH, the two home shopping channels combined, dipped 4% to $1.9 billion, Qurate reported Monday.

QxH saw sales declines in jewelry, accessories and home, which were partially offset by gains in beauty and apparel, according to Qurate.

“The third quarter was challenging, with continued sales and Adjusted OIBDA pressure at QxH and Zulily,” Mike George, president and CEO of Qurate Retail, said in a statement.

“However, we were pleased to see Cornerstone’s continuing operations turn to growth and a further acceleration of growth at QVC International,” he said. “Despite the sales pressures, we generated strong growth in free cash flow. As we look ahead, we are intensely focused on improving our operating results, accelerating synergy capture and better positioning our companies for a changing retail and media world, while sustaining strong cash flow.”

QxH experienced lower TV distribution commissions and higher product margins.

Lower TV distribution commissions were in part associated with the accounting treatment for certain renewed HSN carriage agreements, as well as favorable renegotiated rates at HSN.

Beginning in the third quarter last year, HSN began renewing TV carriage agreements with certain distribution partners, which provided multi-year upfront payments that are amortized over the life of the agreements, versus its previous convention of expensing quarterly payments as incurred.

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

November 5, 2015

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.”

QVC’s Parent To Acquire Zulily For $2.4 Billion

August 17, 2015

Those sly pusses at QVC have put together a really big deal, and we can assure you it is not on Easy Pay: The home shopping network’s parent is buying e-commerce site Zulily Inc. for $2.4 billion.

The acquisition of the flash-sales site aims to help QVC target millennial moms, providing a young audience for the home shopping channel to sell its merchandise.

We have to scurry to work, but here is the press release.

zulily to Join QVC Group

Transaction Brings Together Leading “Joy of Discovery” Retailers to
Expand Digital Footprint, Enhance Customer Experience, and Drive Global Growth

West Chester, Pa. (August 17, 2015) — QVC, the global leader in video and ecommerce retail, today announced that its parent, Liberty Interactive Corporation (“Liberty Interactive”) (Nasdaq: QVCA, QVCB, LVNTA, LVNTB) has entered into a definitive agreement to acquire zulily, inc. (“zulily”) (Nasdaq: ZU), a leading ecommerce site serving millennial moms and the digital-only generation, for approximately $2.4 billion. Under the proposed transaction, zulily will join the QVC Group to create a discovery-driven and experiential digital commerce powerhouse with appeal that spans generations of women.

Since its inception in 2010, zulily has emerged as a destination brand for millions of millennial customers, becoming one of the few retailers in history to exceed $1 billion in annual net sales in five years. Today, zulily brings young moms special finds every day, through desktop, mobile websites and mobile apps that feature a curated, constantly changing collection, spanning apparel, fashion accessories, children’s apparel, home décor, toys, gifts and more. With a vast network of 10,000 vendor partners, zulily offers thousands of new products every day from entrepreneurs and top brands, all at compelling values. Approximately 56% of its orders are placed over mobile devices.

Together, the QVC and zulily platforms represent combined annual revenues of more than $10 billion and 230 million units shipped globally to 19 million customers in 85 countries. Highly-complementary customer bases span generations of women, offering both companies the opportunity to extend their businesses beyond their respective core audiences. Adding zulily to the QVC Group allows QVC to reach an audience of young mothers who love to shop, and to accelerate its mobile leadership.

“QVC and zulily share a passion for creating a unique shopping experience that is rooted in discovery and brings carefully curated products to life. Together, we will further engage modern women who love to shop in new and compelling ways,” said Mike George, President and CEO, QVC, Inc. “As online shopping evolves, this partnership brings together two high-performing and highly-complementary leaders in ecommerce. We look forward to welcoming the talented zulily team to the QVC Group as our shared values and beliefs create an incredibly strong foundation for us to collaborate across all aspects of the business and transform how we serve customers in new, digital-first ways.”

“zulily and QVC are two distinctive customer centric brands that are passionate about delivering an exceptional shopping experience and surprising and delighting our customers, each and every day. There are tremendous opportunities to accelerate the growth of the zulily brand for our customers, our employees, and our vendors with QVC’s partnership.” said Darrell Cavens, President and CEO, zulily, Inc. “Together, zulily and QVC have complementary philosophies about our approach to entertaining and engaging our customers and we’ll now have the ability to unlock synergies for growth and deliver new ways to innovate on the discovery commerce model and change the way people shop.”

While each company will maintain its distinctive and powerful brand identity, this transaction will enable both businesses to expand their product lineup, brand portfolio, and vendor network in order to bring new, exciting experiences and value to their customers. Through zulily, QVC will have access to additional platforms to market its unique assortment, from Today’s Special Value to exclusive proprietary brands. QVC’s expertise and resources in attractive categories like Beauty, Home Décor and Apparel Special Sizes will enable zulily to expand its category offerings, and expose its customers to a distinctive shopping experience through joint on-air and online programming events.

Additionally, both companies will be positioned to thrive through intelligent cross-marketing to a combined customer base of 19 million and millions more email prospects, leveraging QVC’s deep expertise in analytics and zulily’s powerful personalization tools.

QVC will look to leverage zulily’s technologies, which use historical and real-time data to customize offerings for millions of customer touch points every day, to enhance customer engagement. QVC also sees opportunities to utilize zulily’s extraordinarily agile and efficient digital content production system. Meanwhile, zulily will explore incorporating QVC’s deep video expertise, as well as its flexible customer finance systems, to enhance its shopping experience, and unlock incremental demand on its own platforms.

With live programming broadcasting to nine countries on three continents, QVC remains focused on global growth, reflected in the August 2015 launch of QVC France. QVC sees opportunities to further accelerate zulily’s international growth through its local market knowledge, vendor relationships and platforms.

Together under the QVC Group, zulily and QVC will be able to leverage their combined scale, capabilities and customer bases to accelerate each company’s sales and deliver cost savings by leveraging their combined purchasing volumes.

In connection with the transaction, Mike George is being appointed to the Executive Committee of the Liberty Interactive Board of Directors and will serve on that committee with John Malone, Chairman of the Board of Liberty Interactive, and Greg Maffei, President and CEO, Liberty Interactive. Darrell Cavens will report directly to Mike and the other members of the Executive Committee.

Following the close of the transaction, QVC and zulily will operate under a management structure that enables each company to remain focused on its respective business, yet facilitates close collaboration to drive benefits across the combined organization. zulily’s President and CEO, Darrell Cavens, will continue to lead the business, and the rest of zulily’s senior management team, which has been instrumental in the success of the company, will remain in place and continue to report to him. zulily Chairman and co-founder Mark Vadon will join the Board of Liberty Interactive and provide strategic counsel and support to the companies.

The transaction is expected to be completed in the fourth quarter of 2015, subject to regulatory approval and other conditions.

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

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.