QVC Sees Modest Second Quarter Growth

Second quarter sales within QVC’s U.S. division grew slightly, but company officials offered a cautious outlook for the remainder of the year, noting a deceleration in demand in the latter part of the quarter.

Quarterly sales at QVC U.S. were $1.43 billion, up 2% from sales of $1.41 billion in the comparable quarter the previous year. Total revenue for the QVC Group, which also includes QVC International and Zulily, were up 21% to $2.42 billion. The results include $366 million in revenue from Zulily, which was acquired by QVC’s parent company Liberty Interactive in 2015. Net income for the QVC Group was $127 million, up 13% year-over-year.

“We reported solid second quarter results, with good sales growth in most markets,” said Mike George, QVC president and CEO. “Late in the quarter, we experienced a deceleration in demand in the U.S. that has continued. As a result, our near-term perspective is more cautious. Longer term, we remain well-positioned with our highly differentiated retail model, strong customer retention, and our ability to deliver compelling experiences across immersive commerce platforms.”

In the QVC U.S. division, growth was driven by the apparel and accessories categories, which was partially offset by declines primarily in jewelry and electronics. E-commerce revenue increased 11% to $727 million growing to 51% of total U.S. revenue. QVC’s consolidated revenue increased 3% in the second quarter to $2.1 billion. E-commerce revenue increased 11% to $939 million and grew to 46% of consolidated revenue in the quarter from 42% a year ago. Mobile orders were 58% of total e-commerce orders in the quarter, compared to 49% a year ago.