Liberty Interactive, looking ahead to its pending purchase of HSN, posted soft financial results for the second quarter, buoyed by modest e-commerce gains at QVC.
QVC revenues declined 4% in the quarter to $1.98 billion year over year while operating income came in essentially flat at $306 million. E-commerce revenue advanced 3% in the quarter to $963 million as compared to the prior-year quarter. In the U.S., QVC revenue also fell 4% in the quarter to $1.37 billion year over year while operating income slipped 5% to $225 million. E-commerce revenue advanced 3% to $746 million as compared to the prior-year quarter. According to QVC, the operation in the U.S. suffered revenue declines in every category except home versus last year’s quarter.
Revenues in the company’s Zulily business came in essentially flat at $367 million while operating loss narrowed by 33% to $29 million.
Overall, Liberty Interactive net earnings were $175 million versus $379 million in last year’s second quarter. Revenues were $2.35 billion and operating income was $254 million in the quarter versus $2.56 billion and $250 million respectively in the period a year before.
“We were pleased to generate strong margin expansion in the second quarter due to our focus on cost controls and avoidance of excessive promotional activity,” said Mike George, QVC president and CEO. “We are executing on a number of strategies that we expect to restore healthy growth, with a particular focus on greater diversity and newness in our assortments. We were delighted with the strong performance of our international segment, which was led by QVC Japan. We look forward to welcoming the HSNi team to the QVC family with the completion of the acquisition in the fourth quarter, which we believe will be accretive to all of our stakeholders.”