QVC generated strong sales in its first quarter, with the U.S. division, home and e-commerce categories posting positive results, although earnings lagged.
For its first fiscal quarter ended March 31, QVC parent Liberty Interactive posted company net earnings of $63 million versus $143 million in the quarter a year prior. QVC Group company net earnings were $90 million versus $151 million in last year’s quarter.
QVC Group’s revenue increased 22% to $2.37 billion, while operating income decreased 13% to $206 million and adjusted net income decreased 13% to $176 million. QVC Group’s results on an unadjusted GAAP basis include the Zulily acquisition beginning in the 2015 fourth quarter. QVC revenues in the United States were $1.41 billion versus $1.34 billion in the year-earlier period while QVC’s international revenues were $606 million versus $596 million in the 2015 quarter. QVC U.S. operating income was $201 million versus $177 million in the previous quarter while QVC International net income was $60 million versus $69 million in the year-previous period.
QVC U.S. units sold increased 7%, and average selling price per unit slipped 3% to $60.03. The QVC U.S. channel experienced growth in the apparel, accessories and home categories, partially offset by declines in jewelry and electronics. E-commerce revenue gained 10% to $698 million and grew to 50% of total U.S. revenue in the quarter from 47% a year prior.
Overall, Liberty Interactive revenues were $2.51 billion versus $2.21 billion in the year-earlier quarter.
“QVC generated another strong quarter of revenue growth, particularly in the U.S., and posted impressive increases in mobile penetration of orders in the U.S. and on a consolidated basis. Zulily started off strong in 2016 with accelerating revenue growth and a six-fold increase in adjusted OIBDA on strong operational execution,” said Greg Maffei, Liberty Interactive president and CEO.
Mike George, QVC president and CEO, added, “We generated very solid top-line growth, with local currency gains in nearly every market. We continued to benefit from our strategies and investments to enhance and extend the reach of our commerce platforms. We delivered double-digit gains for both consolidated e-commerce revenue and mobile orders. Our top-line performance and the continued expansion of our commerce platforms demonstrate how strongly the QVC brand resonates with consumers.”