Qurate reported solid sales growth across most of its retail divisions including QVC, while the company said it continues to work on integrating HSN into its operating business structure.
For the second quarter, Qurate Retail posted net income of $187 million, or 40 cents per share, versus $111 million, or 24 cents per share, in the period a year earlier.
Adjusted for one-time charges, net income was $214 million, or 45 cents per share, versus $188 million, or 41 cents per share, in the quarter a year prior. Adjusted earnings per share missed a MarketBeat-published consensus analyst estimate by a penny.
Total retail revenue was $3.23 billion versus $3.17 billion in the quarter a fiscal year before. Operating income was $358 million as compared to $320 million in the period a year earlier.
By retail division, QVC U.S. revenue was $1.43 billion versus $1.37 billion and QVC international revenue was $656 million versus $612 million in the year-earlier quarter. HSN revenue was $473 million versus $533 million in the year-prior quarter; Zulily revenue was $415 million versus $367 million; and Cornerstone net revenue was $262 million versus $288 million in the year-before period.
According to Qurate, QVC U.S enjoyed growth in the apparel and accessories categories partially offset by declines in home, beauty, electronics and jewelry while QVC international enjoyed growth in the home, accessories and beauty categories partially offset by declines in apparel, jewelry and electronics. The company noted that HSN’s sales mix shifted in the direction of home, accessories and beauty in the quarter from apparel, jewelry and electronics as part of its integration into the newly merged company structure.
“We continued our sales growth at QVC and the strong momentum at Zulily, as well as initial profit improvement at HSN as we implement our operating strategies,” said Mike George, Qurate Retail’s president and CEO. “We are showing solid early execution on strategic priorities to expand and engage our customer base across platforms and achieve attractive operating synergies. Qurate realized strong growth in its total customer count, led by Zulily and QVC, and significantly grew customer engagement as we increased exposure on emerging video and social platforms, and continued to strengthen our performance marketing capabilities. Qurate Retail’s unique position at the intersection of key trends in retail, together with our operational execution, will set a strong foundation to drive sustainable growth and long term value creation.”