Merchandise for the home helped the Qurate Retail Group beat an analyst consensus earnings estimate for the third quarter as each of its business segments reported sales increases.
Third quarter company net income was $338 million, or 80 cents per diluted share, versus a net loss of $770 million, or $1.85 per diluted share, in the period a year earlier.
Adjusted for one-time events, earnings were $238 million, or 57 cents per share, versus $177 million, or 42 cents per share, in the year-prior period. Qurate topped a MarketBeat-published analyst consensus adjusted diluted earnings per share estimate of 43 cents.
Revenue was $3.38 billion versus $3.09 billion in the year-before quarter. Operating income was $406 million versus an operating loss of $727 million in the period a year past.
Revenues for the QXH segment, including QVC and HSN operations, were $1.98 billion, up 7% year over year, while QVC international revenues were $723 million, up 11% and 8% in constant currency terms. Zulily revenues were $395 million, up 10%, and Cornerstone revenues were up 26% to $285 million.
Revenue in the QXH segment improved on higher unit volume, reduced customer returns and an increase in shipping and handling revenue, partially offset by a reduction in average selling price. The segment saw gains in home and accessories, partially offset by declines primarily in apparel and electronics.
“We generated strong growth in revenue, OIBDA, free cash flow and new customers, reflecting broad-based strength in home-related products,” said Mike George, Qurate Retail president and CEO. “We are particularly pleased with our consolidated adjusted OIBDA up 24% and gains at all our business units. We believe our strategic priorities and continued investments in innovation position us well to sustain our momentum in the long term. Qurate Retail offers a unique blend of media assets, particularly our leadership in livestreaming, and retail core competencies centered on curating appealing merchandise and building loyal customer relationships through highly engaging content. This combination provides a valuable competitive advantage in the evolving retail marketplace.”