Posts Tagged ‘QVC’

QVC, HSN Suffer 3% Revenue Dive In 4Q

February 26, 2020

Fourth-quarter blues for QVC and HSN.

Combined, the two leading home shopping networks, saw their revenue drop 3% for the quarter as well as for the full year 2019, their parent Qurate Retail reported Tuesday.

In the fourth quarter last year, sales slid to $2.692 billion from $2.789 billion the same year-ago period.

In addition, the unit that includes both channels, called QxH, saw revenue declines in all categories. For the full year QxH realized declines in all categories except electronics.

“Our fourth quarter results were in line with full-year trends, notably we experienced pressure on revenue and margins from the investment in network optimization at QxH,” Mike George, president and CEO of Qurate Retail, said in a statement.

“Despite these challenges, we were encouraged with our ability to grow free cash flow in 2019 on an operating basis,” he said. “We are accelerating the execution of our strategic priorities as we work to return to profitable growth. We continue to lead the curation of special products at compelling values across multiple platforms, providing customers an important third way to shop.”

Operating income declined in the fourth quarter and full year primarily due to an increase in impairment charges at HSN, partially offset by the absence of transaction-related expenses incurred in 2018.

Operating income included non-cash impairment charges related to the fair value of HSN’s trade name of $147 million in the fourth quarter of 2019 and $30 million in the fourth quarter of 2018.

For the quarter and full year, adjusted OIBDA margin(3) contracted primarily due to cost of sales pressure, which included higher fulfillment (freight and warehouse) expenses related to the network optimization plan and general freight rate increases as well as inventory management including costs associated with the exit from Ingenious Designs.

That company, FYI, is Joy Mangano’s former business.

For the full year, these headwinds were partially offset by a favorable product mix impact, according to Qurate. Adjusted OIBDA margin benefited in the fourth quarter and full year from TV distribution commissions, which were partially offset by higher marketing expenses.

The fourth quarter also benefited from lower incentive compensation. 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 of 2018, HSN began renewing TV carriage agreements with its 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.

Jewelry Designer Valencia Key Debuts On QVC Monday

February 20, 2020

QVC is debuting a new jewelry designer next Monday, Valencia Key.

We picked up that tidbit on LinkedIn strangely enough. She is a gorgeous African American woman, and we only point that out because it’s always nice to see a vendor who is a woman of color on the home shopping channels.

It appears Key was the winner of The Big Find competition, which you folks probably know more about than we do.

Anyway, from the glimpse we got of her collection it looks pretty interesting.

QVC Jersey Girl Host Katie McGee Takes A Permanent Powder

February 5, 2020

Another QVC host has hit the road. This time it is Katie McGee.

Now we’d be lying if we said we knew who she was. She’s was obviously one of the new younger, crop pf hosts that we had never viewed.

Last week McGee announced her departure from the No. 1 home shopping network on Facebook.

“To my QVC friends — I am sharing the news that I am leaving QVC,” she posted. “I have so enjoyed my time with all of you and invite you to continue to follow me on my personal pages. Thank you for all sharing this journey with me.”

Her bio on QVC’s website described her as “an animal lover and an avid reader,” adding that she came to the home shopping network after 15 years in the news business. Poor woman!!!!

“Growing up in the Garden State, she’s a proud Jersey Girl who loves to cook, read,and watch football,” the site said. “Katie and her husband Jason are proud parents of their beloved golden retriever, Norman!”

We may not know her, but we’re sad to see a fellow Jersey Girl and animal lover having to exit a job when it doesn’t appear to be her choice.

QVC, HSN To Report Fourth-Quarter Results Feb. 25

January 28, 2020

Qurate Retail Inc., the parent company of QVC and HSN, will report its fourth-quarter earnings Feb. 25.

Qurate President and CEO Mike George and Executive Chairman Greg Maffei will host a conference call Feb. 26 to discuss results 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 fourth-quarter earnings conference call will be broadcast live on the internet. All interested participants should visit the Qurate Retail website at http://www.qurateretail.com/events to register for the web cast.

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 SEC.

Ex-QVC Host Kathy Levine Resurfaces to Rep Nutrisytem on HSN

January 28, 2020

We saw that former QVC queen bee host Kathy Levine just turned up on HSN as a rep for Nutrisystem.

https://www.hsn.com/products/nutrisystem-fast-5-balanced-personalized-four-week-plan/9400430#

Since her exit from QVC many years ago, and her marriage to a wealthy older man, Levine has made appearances on a number of other home shopping channels, including ShopHQ.

She also just appeared in a video session on Facebook with husband-and-wife home shopping team Judy Crowell and Paul Deasy.

As with many home shopping personalities, Levine’s face looked tucked and taunt. Maybe she was just really rested, but we think she succumbed to the TV medium’s pressure to look young with the help of a surgeon. Not that there’s anything wrong with that. We understand the pressure.

We hadn’t seen QVC host Jane Treacy in awhile, and she looked like she has had some work done on her eyes.

Big Whoop: QVC Is Now All Easy Pays, All The Time

January 2, 2020

QVC had hyped a big announcement it said it had planned for New Year’s Eve.

We didn’t see the announcement, but apparently the big scoop was that the No. 1 home shopping network from now on is offering easy pays on all its merchandise all the time.

We use Easy Pay all the time, but it is a bit of a trap. You forget all those Easy-Pay items you ordered, and sometimes wind up getting a very rude awakening when your credit card bills come in.

Anyway, it reeks a bit of desperation on QVC’s part.

QVC Vendor Lisa Rinna Goes Nude For the Holidays

January 2, 2020

QVC vendor and reality TV star Lisa Rinna posted a nude photo of herself about a week before Christmas on social media. We think it was on Instagram.

All we can ask is why? Is she this desperate for publicity?

We saw part of the photo, which apparently dates back a number of years ago. The version we saw had the nipples hidden by two black strips that said “Hollywood gossip.”

Not cool. We don’t want to sound like prudes, but guess we are.

QVC Founder Segel Dies At Age 88

December 23, 2019

This past weekend QVC’s founder, Joseph Segel, died at age 88. Media in the Philly-NYC area widely ran obits about his demise.

https://www.inquirer.com/obituaries/joseph-segel-qvc-franklin-mint-philadelphia-obituary-20191222.html

From what The Philadelphia Inquirer reported, Segel was a born entrepreneur. He started printing and sell business cards to local companies when he was just 12.

Before starting the dominant home shopping network, Segel launched Franklin Mint. And he never stopped. Segel debuted HairRx, a hair care system, in 2018.

There is a detailed biography of Segel online: https://www.josephsegel.info/

Here is part of what it has to say about Segel’s “Master Achievement,” QVC:

In 1986, Segel noted the success of the pioneering home shopping program, Home Shopping Network. After watching the primitive nature of its programming at that time, he immediately recognized that televised home shopping could be made significantly more appealing in a number of ways. So he then started QVC Network (standing for Quality-Value-Convenience).

Within three months after starting the company, Segel raised over $20 million in an IPO. With a novel plan to sign up cable companies by awarding them convertible preferred stock in proportion to the number of homes to which they would carry the QVC program, Segel initially lined up over 7 million TV homes for the network’s launch. The first broadcast, five months after the company was started, was carried by 58 cable systems in 20 states.

Segel introduced numerous innovations to televised home shopping, such as accurately describing products rather than hyping them, full disclosure of shipping and handling charges, and imbuing all employees with the mission to “give customers more than they expect.”

In its first year, QVC registered sales of $112 million — a record for first-year sales of a new public company that had not taken over an existing business.

In 1989, Segel decided that the next important step in expanding QVC’s sales would be to acquire Cable Value Network (CVN). Supported by Telecommunications, Inc.(TCI), the nation’s largest cable operator at the time, CVN had become the second largest televised shopping network, not quite as large as HSN but twice the size of QVC. Subsequently, CVN was acquired by QVC for $380 million, primarily with financing provided by banks and cable operators.

The purchase of CVN was described as a python swallowing an elephant, resulting in an initial quarterly loss of $17 million. However, the calculated gamble to establish QVC’s market leadership eventually paid off. In 1986 there were 17 other new shopping channels trying to improve on the HSN model. Only one – QVC– would survive into the 90’s.

In 1995, Comcast Corporation and TCI acquired QVC. TCI’s interest was subsequently acquired by Liberty Media, and Liberty Media eventually bought out Comcast’s 57% interest for nearly $8 billion.

QVC Sends Out Letter on Maran’s Argan Serums

December 23, 2019

QVC sent out a letter to shoppers who purchased Josie Maran’s Mega Argan Favorites Holiday Trio, a TSV.

According to someone who received the letter, the home shopping network seemed to be offering a disclaimer about the product claims made about the Argan Milk Facial Serum & Body Serum.

The Facebook poster said in its letter QVC essentially said those products didn’t live up to their promise of “penetrating all the way down to the deepest layers of your skin.”

QVC said the “letter is provided for you but you need not take action,” but added that you could send back the Argan goods for free shipping and a full refund if you wanted.

Very interesting.

Is QVC’s Today’s Special Value Special Anymore?

December 23, 2019

We’ll chime in on this: Does QVC’s Today’s Special Value matter anymore?

Someone on Facebook complained that since QVC no longer offers a single, one-day special value — but rather like a half dozen of them that last more than a day — does the term TSV even have any importance anymore?

It doesn’t to us.

Like other Q followers, we used to tune into QVC at midnight faithfully each night to see what the special deal was. Now that’s meaningless. And we aren’t even sure nowadays when a so-called TSV ends. Are they good for a week now?

It kinda stinks.