Qurate Sales, Income Slip In Q2

Qurate retail sales and income declined in the second quarter but profits came in over a Wall Street estimate.

For the second quarter, Qurate posted net income of $118 million, or 28 cents per diluted share compared with $187 million, or 40 cents per diluted share, in the year-before period. Adjusted net income came in at $206 million, or 48 cents per share, versus $216 million, or 46 cents per share, in the period versus the year-previous second quarter.

A Zacks Investment Research analyst consensus estimate called for adjusted earnings per share of 42 cents in the quarter.

Total revenue was $3.11 billion versus $3.23 billion in the quarter a year earlier. Operating income was $197 million versus $238 million in the year-prior period.

Revenue in the QxH division, including U.S. QVC and HSN operations, decreased 1% to $1.9 billion, while revenue in QVC International fell 2% to $640 billion, or 1% on a constant currency basis. Revenue at the Zulily division slid 13% to $363 million in the period while revenue at Cornerstone slipped 11% to $234 million. Cornerstone revenues decreased 3% excluding the closed Improvements business results, Qurate noted.

The company recently appointed Leslie Ferraro president of QxH effective September 16.

Mike George, president and CEO of Qurate Retail, said, “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.”