Posts Tagged ‘QVC’

Combined QVC-HSN Sales Slip 1%, to $1.87 Billion, in Second Quarter

August 9, 2019

This is an interesting turn of events: Qurate Retail is no longer breaking out separate financial figures, such as sales, for QVC and HSN. And the nets have a new honcho.

Qurate, parent of the two top home shopping networks, reported its second-quarter earnings Thursday. And it only broke out info for QxH, its goofy name for the umbrella company that runs and oversees the two channels. So we don’t know, at least from the 2Q press release, how QVC did versus HSN, just the combined data for QxH.

So QxH saw its revenue dip 1%, from $1.9 billion to $1.874 billion, in the second quarter compared with the year-ago quarter.

QxH reported sales declines in apparel and jewelry, which were partially offset by gains primarily in accessories and electronics, according to Qurate’s press release.

Operating income margin contracted and adjusted OIBDA margin was flat, reflecting gross margin pressure mainly from higher fulfillment (freight and warehouse) expense, which was partially offset by higher product margins, if you can make any sense of that.

QxH also incurred higher bad debt and marketing expense, according to its parent. These factors were offset by lower TV distribution commissions and customer service expense.

Lower TV distribution commissions were due in part to the accounting treatment for certain renewed HSN carriage agreements, as well as renegotiated rates at HSN and growth in off-air sales. Operating income included higher amortization expense related to HSN carriage agreements.

Beginning in the third quarter last year, HSN began renewing TV carriage agreements with several distributors — meaning cable and satellite companies — which provided multiyear upfront payments that are amortized over the life of the agreements, versus its previous convention of expensing quarterly payments as incurred. This accounting change has a positive impact on QxH’s adjusted OIBDA with a corresponding increase in QxH’s amortization expense, which is neutral to operating income each period and cash neutral over the life of the agreements.

That’s too much accounting mumbo-jumbo for us, but maybe you can make sense of it.

And here’s the exciting statement from Qurate President and CEO Mike George.

“We made good strategic and operational progress, evidenced by the sequential improvement in revenue and adjusted OIBDA margin at QxH and the double-digit, year-over-year adjusted OIBDA growth at QVC International in constant currency,” George said.

“These gains were partially offset by deterioration at Zulily. We are encouraged by the resiliency of our businesses and our ability to generate high levels of adjusted OIBDA and free cash flow in a dynamic and highly competitive environment. We resumed share buybacks, repurchasing nearly 12 million shares at an average price per share of $12.88 following our last earnings call. Going forward, we remain focused on building on the collective strengths of QVC and HSN, realizing synergies and stabilizing Zulily.”

Qurate also said that it had appointed Leslie Ferraro, a former Walt Disney Co. executive, as president, QxH, effective Sept. 16.

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A Cheeky Lynn Murphy on HSN, And Michael O’Connor

July 31, 2019

Thank God we don’t work as a host on a home shopping network, so we can walk around with wrinkles on our face and some sagging. That’s apparently not the case in the electronic retailing world, at least for female hosts.

Let us preface this by saying that we have seen ourselves on the small screen, and it amplifies every facial flaw in a horrifying manner. That said, we got a gander at HSN host Lynn Murphy this week on a Chaco Canyon show after not seeing her awhile on air.

She is a blonde beauty, but she didn’t look right to us. Either she had the worse makeup done in history that night, or she had some kind of filler put in her cheeks. It gave a very unnatural appearance.

But it was not as dramatic as the work that HSN host Connie Craig-Carroll had done. We know she is gone from the home shopping network now, but we think she was gorgeous natural, without a visit to any doctor’s office.

On another note, the Chaco Canyon show had one of the most beautiful turquoise necklaces we had ever seen. It was very, very long — to the waist — with many large turquoise stones. We knew it would cost a lot, but checked out the price. It was $3,000, and apparently sold out!

And on yet another note, former QVC Affinity Diamond rep and ex-Jewelry TV vendor Michael O’Connor has turned up on HSN, doing its Passage to Gold shows.

He’s a real pro and we enjoy seeing him.

QVC, HSN Parent To Report 2Q Earnings Aug. 7

July 14, 2019

The owner of QVC and HSN, Qurate Retail Inc., will post its second-quarter earnings Aug. 7, the company said last week.

Qurate President and CEO Mike George and Executive Chairman Greg Maffei will host a conference call to discuss results Aug. 8 at 8:30 a.m.

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

The second-quarter press release and conference call may discuss Qurate Retail’s financial performance and outlook, as well as other forward looking matters.

Interested in listening in?

Call ReadyTalk at (800) 347-6311 or (323) 794-2094, passcode 3591272, 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 second quarter-earnings conference call will be broadcast live via the internet. All interested participants should visit the Qurate Retail website at http://www.qurateretail.com/events to register for the webcast.

Links to the press release and replays of the call will also be available on the Qurate Retail 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.

Connie Craig-Carroll, Two Other Hosts Exit HSN

June 15, 2019

Today was apparently bloody Friday for HSN hosts, with three of them apparently getting pink slips under the network’s new ownership.

Connie Craig-Carroll, who has been a host for nearly 22 years, Robin Wall and Brett Chukerman are all exiting. They each posted the news individually on their Facebook pages.

It’s a pretty big shakeup, but perhaps not unexpected now that HSN is under the ownership of Qurate Retail, parent of QVC. We sympathize, especially with Craig-Carroll. When a company is looking to slash costs, it usually gives veteran employees who are on the top of the pay scale the can. It happened to us twice.

Craig-Carroll left a long goodbye. She pointed out that she had gotten married, had a baby and became a single mom during her tenure at the network, where she has worked since she was 27.

She said she is moving on to her next adventure and will be leaving HSN next month. Craig-Carroll asked people to post their favorite moments or products, and a bevy of HSN vendors lamented her exit.

Chukerman, who has been on HSN for eight years, said he will be departing the network next month as well.

Wall said she had met her husband at HSN nearly 25 years ago, but she has only been a host at the network for 10 years. Her last show is Saturday, June 15, from 4 a.m. to 7 a.m.

“God has always guided my path so I look forward to where it leads next,” she wrote.

Amen to that.

QVC Pulls Plug on Studio Tours, On-Site Shop and More Bonehead Moves

June 11, 2019

There’s so much change going on at QVC, HSN and Evine that it’s hard to keep up.

First of all, QVC is closing its Studio Store at its HQ in West Chester, Pennsylvania, and will no longer be offering tours of its studios there. We were at the HQ once, and at the store, a few years back when the home shopping network held a special event where customers got to meet many of its jewelry vendors.

From what we saw, the tours will end in August. There were several different types of tours, with an “All Access” version costing $100 a ticket.

Here’s what QVC.com has to say about its less pricey $10 “Backstage Pass” tour:

Since opening in the fall of 1997, QVC Studio Park in West Chester, PA, has become a popular destination for thousands of visitors interested in seeing live television at its best.

At this state-of-the-art broadcasting facility, guests will see and experience how QVC products are sourced, tested, brought to life on air, and delivered to millions of QVC customers. There are views into QVC’s more than 58,000 square feet of studio space where guests may be able to watch QVC programs in progress and may even catch a glimpse of a favorite host or guest!

It seems like the tours were great PR and branding for QVC, fostering even more customer loyalty. Said to see them go.

And this all isn’t just happening QVC. Qurate Retail, parent of both QVC and HSN, has apparently also decided not to renew the lease on HSN’s outlet store in Tampa, Florida. A customer posted on Facebook that she had just been to the Tampa shop and it had signs posted all over that it was closing.

We assume this is all part of corporate belt-tightening. But we find it hard to believe that these brick-and-mortar stores would have been that expensive to operate.

In another obvious cost-cutting measure, HSN will be airing taped rather than live broadcasts overnight. Since we often stay up until ridiculous hours when we should be in bed, we’ll miss those live shows where hosts sometimes got a little wacky. But we wouldn’t want to work those crappy overnight hours, so we guess the move is good for HSN employees.

On the Evine front, the No. 3 home shopping network is no longer a Today’s Top Value. It used to counter program, introducing its TTV at 10 p.m. while QVC and HSN would debut their’s at midnight.

Not sure if how this will work out for Evine. We haven’t had a chance to watch and see how it’s replaced its Top Value, but to us the old concept was a good way to drive shoppers to your channel at a set time every night. But what do we know?

Combined QVC-HSN 1Q Sales Drop 4%, to $1.9 Billion

May 9, 2019

QVC’s and HSN’s combined revenue slid 4% in the first quarter versus last year, to $1.9 billion, in a performance that even Mike George couldn’t put a good spin on.

The two domestic home shopping networks, merged in a unit named QxH by their parent Qurate Retail Inc., for the first time reported their sales as one entity.

“Our first quarter performance was disappointing amidst a changing retail and media landscape,” George, president and CEO of Qurate Retail, said in a canned statement.

“Our recent results have been more variable as we navigate the evolution of our business model and the integration of HSN, fine-tune our investments, and strike the right balance between sensible revenue growth, margin expansion, new customer acquisition and our strategic initiatives,” he said.

“We are taking a disciplined approach, investing in initiatives to drive high-quality customer growth and engagement, broaden and deliver our assortments, particularly across new digital platforms, and optimize our fulfillment network. Our customer fundamentals remain strong, including customer count, retention and purchase frequency. We are confident we are taking the right actions to deliver attractive operating margins and free cash flow for the long-term.”

So what happened?

QxH experienced sales declines in home, jewelry and beauty, which were partially offset by gains in electronics with modest growth in fashion (apparel and accessories), according to the first-quarter press release.

QxH enjoyed strong sales growth in off-air products; however, these gains were not sufficient to offset lower sales of on-air items.

“Operating income and adjusted OIBDA margin) contraction was primarily due to higher inventory management costs, fulfillment and marketing expenses, which were partially offset by lower TV distribution commissions and higher product margins,” the press release said. “Lower TV distribution commissions at QxH are in part due to the accounting treatment for certain renewed HSN carriage agreements (described below). Operating income also included higher amortization expense related to the amortization of HSN carriage agreements.”

Starting in the third quarter last year, HSN began renewing TV carriage agreements with several distribution partners, which provided multiyear upfront payments that are amortized over the life of the agreements, versus its previous convention of expensing quarterly payments as incurred, according to the press release.

This accounting change has a positive impact on QxH’s adjusted OIBDA with a corresponding increase in QxH’s amortization expense, which is neutral to operating income each period and cash neutral over the life of the agreements.
Roger that, if you have an accounting degree.

If you want to hear the juicy details, Qurate Retai President and CEO Mike George and Executive Chairman Greg Maffei, will discuss the earnings on a conference call which will begin at 8:30 a.m. (E.D.T.) on this Friday, May 10. The call can be accessed by dialing (800) 458-4121 or (323) 794-2093, passcode 3078914, at least 10 minutes prior to the start time. The call will also be broadcast live across the Internet and archived on our website.

To access the webcast go to http://ir.qurateretail.com/events-and-presentations. Links to this press release and replays of the call will also be available on Qurate Retail’s website.

Veteran Host Jill Bauer To Leave QVC in June

April 22, 2019

QVC host Jill Bauer, who has been at the network 25 years, is leaving in mid-June.

Bauer went public with the news Saturday night on-air, and she later posted a video on her Facebook page explaining her decision to move on.

Bauer said she turned 50 this year, wants to try new things and wants to spend more time with her kids, who are pretty grown up (the girl at college, the son now a teen).

“I decided I wanted to chase some things,” she said

We first learned that Bauer was leaving Sunday night when we were watching her with Jai Jewelry Designer Scott Grimes and all of a sudden he got teary-eyed, apparently over her pending departure. They were often paired together.

Bauer essentially said she is taking a leap of faith, because she doesn’t have a new job lined up.

Of course, we wish her well. It is sad for us to see so many of the home shopping old guard leaving these days.

Ex-QVC Host Lisa Mason’s Husband Dies

April 21, 2019

It’s with great sorrow that we report that former QVC host Lisa Mason has lost her beloved husband Gino.

After she left QVC Lisa chronicled Gino’s battle with brain cancer on Facebook, and he certainly survived for years after his diagnosis.

But the end has come, and Lisa told the at least part of the tale.

To my Gino:
Before we met, I felt like half a person.
After we married, I finally felt whole.
You’ve left, my Love. But God has not.
He fills my broken, empty heart.
He has promised to remain there until I take your hand again.
Rest, my Beloved. I count the days until we are reunited. Heaven awaits!
I love you forever. I will always be your faithful wife. Lisa.

Lisa always talked about Gino when she was on QVC, and it was obvious they were soulmates.

We are so sorry to hear of his death, and wish her our deepest condolences on her loss.

QVC Shutters French Home Shopping Network

March 24, 2019

We’re late on this little tidbit, which broke earlier this month, but Qurate Retail Group has pulled the plug on QVC France, one of the company’s international home shopping networks.

Qurate, the parent of domestic QVC and HSN, ceaseed operations of its TV network and digital platforms in France effective March 13.

From the announcement, it looks like 154 people lost their jobs. “Appropriate steps are being taken to provide assistance and resources for the team members’ transition,” according to Qurate’s press release.

“The decision to halt our QVC France operation was carefully considered, as QVC France had under-performed against financial and operational expectations, in large part due to unique in-market structural challenges and market dynamics that evolved in the years following the launch of the operation,” Aidan O’Meara, president of Qurate Retail Group International, said in a statement.

“We determined that these challenges were impacting our ability to develop our business in the manner we expected,” he said. “We want to thank our QVC France team members for their dedication, commitment, and professionalism throughout this period.”

By shuttering the network in France, “QVC will be able to better allocate its annual investment in France into other markets to drive sustainable organic growth,” the press release said. “Further, many corporate functions within QVC are shared across the European markets, and the company believes that this action will allow the teams to better focus on other existing markets.”

In the fourth quarter last year, Qurate recognized charges of about $13 million, of which $9 million was for severance and was excluded from Adjusted OIBDA, and $4 million was for inventory obsolescence and affected Adjusted OIBDA. The company expects to incur additional costs in 2019.

QVC customers in France will still be able to shop with QVC through its QVC UK and QVC Germany commerce platforms, according to Qurate.

Outside of the United States and France, QVC serves about 4.6 million customers in Germany and Austria, Italy, Japan, the United Kingdom and Ireland. QVC also serves customers through a joint venture in China.

QVC’s Team Moseley To Run Travel Agency

March 18, 2019

That QVC couple Jeff and Erin Moseley have found an additional port of call, so to speak.

“It’s official, we now own a franchise of the largest travel agency in the world, Cruise Planners – TeamMoseleyVacations.com,” Jeff posted on Facebook. “Please join us in the celebration and we look forward to the opportunity to help you plan your next Dream Vacation!!”

The married pair are alums of Jewelry Television, and they eventually found their way to the No. 1 home shopping network, QVC. Jeff is a gemstone expert for the channel, while his wife Erin is the on-air Diamonique rep.

We asked Jeff directly on FB if he and Erin were leaving QVC for their new venture.

“No we love working at Q,” Jeff wrote back. “We just had an opportunity to buy a franchise in travel and with so many people asking us for advice every week and the fact we love to travel ourselves we felt it was a good fit and fun.”

We always thought they were a classy pair and enjoy their QVC visits. They are “following our heart” by buying this franchise, Erin and Jeff said on Facebook.

“Over the years so many of you have told me ‘You should be a travel agent!’ and I’m finally following your advice,” Jeff wrote. “As a Cruise Planners franchise owner I’m here to share my experience as a world traveler, as a destination specialist, as a husband/father of a family who loves to vacay and as your friend. TeamMoseley is here to help you plan your next cruise, all inclusive resort, safari, Alaskan land tour…The possibilities are endless! Let’s get you out there to see the world, make memories and find your happy place!”

And they haven’t wasted any time capitalizing on their gemstone knowledge. Jeff posted this on Facebook Sunday night.

JEWELRY & GEM LOVERS CRUISE

If you want to learn more about where gems come from & want to learn more about how jewelry is designed & manufactured & what’s hot & what’s not while enjoying a glass of champagne at sea then stay tuned!

Team Moseley is currently speaking with some of the biggest designers, manufacturers & site holders for mines & top home shopping television host in the business and will soon be announcing details as far as who is cruising with us for this exclusive event.

If you are interested please email us in advance and we will share details as soon as all designers, manufacturers and site holders have confirmed.

Do you love to cruise? Do you love gems & jewelry?

Jeff.Moseley@cruiseplanners.com

Evine, of course, runs gemstone jewelry and Invicta watch cruises.

This should be interesting.