topic Re: Age of Possibility: Will QVC, HSN Revenue Ever Rise? It’s Down 4% In The First Quarter in Q Talk

Age of Possibility: Will QVC, HSN Revenue Ever Rise? It’s Down 4% In The First Quarter

BalletBabe — Mon, 13 May 2024 02:40:48 GMT

Let's see if QVC's big "Age of Possibility" campaign helps the home shopping network's lagging sales.

Last week, Qurate Retail -- the parent of both QVC and HSN -- reported its first-quarter earnings. And revenue dropped for QxH, the combined networks, by 4%, to $1.54 billion from $1.6 billion.

“We are successfully delivering on our transformation initiatives to reduce costs and improve product margins while prioritizing enhanced merchandise, brand launches and celebrity partnerships which are hallmarks of the QVC and HSN brands," David Rawlinson, the unperturbed president and CEO of Qurate Retail, said in a statement.

"We are focused on achieving our stated objectives throughout 2024 and positioning the business for sustainable future growth," he said. "In April, we launched our Age of Possibility campaign, where we brought together a group of Quintessential 50 ambassadors including Billie Jean King, Patti LaBelle, Queen Latifah, Martha Stewart and many other inspiring women to tell their stories and celebrate our core customer of women over 50.”

Here's the detail we got on the quarter. This includes the slide presentation for investors.

Click to access QRTE+Q1-24+Earnings+Slides_v3.pdf

Qurate said QxH revenue declined primarily due to a 4% decrease in units shipped, partially offset by favorable returns and higher shipping and handling revenue. QxH reported sales declines mainly in home and apparel, partially offset by growth in accessories and jewelry.

Operating income and Adjusted OIBDA margin(4) increased mainly due to higher product margins and lower fulfillment (warehouse and freight) and administrative expenses, partially offset by higher marketing costs. Product margins increased primarily due to mix shift to higher-margin products and lower supply chain costs.

Fulfillment favorability primarily reflected lower freight rates and efficiencies from Project Athens initiatives. Administrative expenses declined primarily due to lower costs for outside services related to Project Athens. Marketing expenses increased largely due to the normalization of the annual spend compared to the prior year.

Former QVC host Steve Bryant has made the most astute observations we've seen on the Age of Possibility. The network doesn't seem to be directly tying it into products and promotions for shoppers.

QVC spent a lot of greenbacks sending hosts and celebs over 50 years old to Las Vegas for a big confab. But it didn't do programming from there with live audiences, Steve pointed out. Why the heck not? Wasn't that a missed opportunity?

This article is from Linda Moss Home Shopping ista. She has a really good blog with HomeShopping news from both QVC and HSN.

Re: Age of Possibility: Will QVC, HSN Revenue Ever Rise? It’s Down 4% In The First Quarter

TheMemphisVette — Mon, 13 May 2024 02:45:33 GMT

non issue for me

Re: Age of Possibility: Will QVC, HSN Revenue Ever Rise? It’s Down 4% In The First Quarter

Etoile308 — Mon, 13 May 2024 03:04:56 GMT

I think to me the one salient fact in their press release was that their revenue decline was offset by higher shipping and handling revenue.

Anyone else notice their closing stock price on Friday?

Re: Age of Possibility: Will QVC, HSN Revenue Ever Rise? It’s Down 4% In The First Quarter

Desertdi — Mon, 13 May 2024 04:02:31 GMT

@Etoile308 wrote:
I think to me the one salient fact in their press release was that their revenue decline was offset by higher shipping and handling revenue.

Anyone else notice their closing stock price on Friday?

@Etoile308 $.70

Re: Age of Possibility: Will QVC, HSN Revenue Ever Rise? It’s Down 4% In The First Quarter

Etoile308 — Mon, 13 May 2024 03:37:05 GMT

I'm seeing at closing on May 10, 2024 at $.0700.

Re: Age of Possibility: Will QVC, HSN Revenue Ever Rise? It’s Down 4% In The First Quarter

1tuffcookie — Mon, 13 May 2024 04:13:03 GMT

@Etoile308

Re: Age of Possibility: Will QVC, HSN Revenue Ever Rise? It’s Down 4% In The First Quarter

NYCLatinaMe — Mon, 13 May 2024 04:38:36 GMT

Maybe revenues are low because sales are low because the prices are really high.

I don't know why QVC needs those high margins. I thought the whole point of remote sales is they don't pay for brick and mortar stores. But their prices are higher than brick and mortar when you consider the sales, which are much better at brick and mortar than QVC.

Re: Age of Possibility: Will QVC, HSN Revenue Ever Rise? It’s Down 4% In The First Quarter

NYCLatinaMe — Mon, 13 May 2024 04:29:18 GMT

@TheMemphisVette wrote:
non issue for me

@TheMemphisVette I care because I like to shop here and I think they may be going bankrupt. It won't be the same if it does.

Re: Age of Possibility: Will QVC, HSN Revenue Ever Rise? It’s Down 4% In The First Quarter

Mlsg — Mon, 13 May 2024 06:19:07 GMT

No need to worry , they will be fine

Re: Age of Possibility: Will QVC, HSN Revenue Ever Rise? It’s Down 4% In The First Quarter

BirkiLady — Mon, 13 May 2024 08:44:39 GMT

@BalletBabe

Excellent post! I have also been following Steve Bryant, who has solid comments and suggestions QVC/HSN would be wise to comprehend.

Don't follow their stock or the Women Over 50, but have wondered why it was not titled Age of Probability (rather than Possibility). If they think they are going to make changes, why didn't they think positive? LOL

Appears all 50 ambassadors and the QVC hosts didn't think a lot of things through before embarking on the Vegas trip and this national advertising campaign.

Re: Age of Possibility: Will QVC, HSN Revenue Ever Rise? It’s Down 4% In The First Quarter

They CallMe MRWILKES — Mon, 13 May 2024 18:25:13 GMT

Yes, revenue declined in the quarter compared to 1st Quarter 2023, but Qurate still generated a positive net operating income: $145 million, $94 million coming from QXH.

While a revenue decline is not a positive sign, overall the balance sheet is in extremely good shape. Cash is sound, debt is being paid down and cash generated from operations is positive (the most significant factor for a viable, healthy enterprise.)

Excellent inventory and expense controls. Nice job Qurate CFO!

Note that QXH revenue fell 4%, but the Cornerstone division fell 11%. Also, the impact of the new 50+ brand campaign won't be apparent until 2nd Q numbers are released. The Cornerstone revenue decline can't be blamed on hosts, guests, television shows or the new market campaign.

The reports of Qurate's demise are greatly exaggerated and perhaps premature.

As always, those eagerly anticipating the death of Qurate will need to wait and be disappointed. Maybe wait a long, long, long time.

Re: Age of Possibility: Will QVC, HSN Revenue Ever Rise? It’s Down 4% In The First Quarter

Shanus — Mon, 13 May 2024 11:32:40 GMT

@BalletBabe Huh? Reduced costs and enhanced merchandise...really? Uh, when does this begin since have not seen anything new and exciting and prices seem higher than ever.

Re: Age of Possibility: Will QVC, HSN Revenue Ever Rise? It’s Down 4% In The First Quarter

BalletBabe — Mon, 13 May 2024 17:26:09 GMT

@Shanus wrote:
@BalletBabe Huh? Reduced costs and enhanced merchandise...really? Uh, when does this begin since have not seen anything new and exciting and prices seem higher than ever.

@Shanus I haven't either but I didn't write the article. Only passing it along.

Re: Age of Possibility: Will QVC, HSN Revenue Ever Rise? It’s Down 4% In The First Quarter

BalletBabe — Mon, 13 May 2024 17:28:03 GMT

@BalletBabe wrote:
@Shanus wrote:
@BalletBabe Huh? Reduced costs and enhanced merchandise...really? Uh, when does this begin since have not seen anything new and exciting and prices seem higher than ever.
@Shanus I haven't either but I didn't write the article. Only passing it along.

Let me add I think their prices have really gone up and most times till you add shipping and taxes it isn't worth it.

Re: Age of Possibility: Will QVC, HSN Revenue Ever Rise? It’s Down 4% In The First Quarter

BalletBabe — Mon, 13 May 2024 17:33:19 GMT

@Shanus @Mlsg @BirkiLady @They CallMe MRWILKES @NYCLatinaMe and anyone I missed.

I don't think any of us that shop here want to see the Company collapse. That is why we come here and voice our opinions. The problem is no one is listening.

Re: Age of Possibility: Will QVC, HSN Revenue Ever Rise? It’s Down 4% In The First Quarter

NYCLatinaMe — Mon, 13 May 2024 17:47:03 GMT

@They CallMe MRWILKES Are you in QVC management?

Re: Age of Possibility: Will QVC, HSN Revenue Ever Rise? It’s Down 4% In The First Quarter

They CallMe MRWILKES — Mon, 13 May 2024 18:28:06 GMT

Total Qurate Operating Expenses: Down 11% Quarter over Quarter

Qurate Cost of Goods Sold: Down 16% Quarter over Quarter

Expense management, inventory declines, sourcing efficiency results in positive net income even as revenue declined.

Go Qurate! Go Qurate!

Re: Age of Possibility: Will QVC, HSN Revenue Ever Rise? It’s Down 4% In The First Quarter

Othereeeen — Mon, 13 May 2024 18:19:10 GMT

Guess who brought in the most money first quarter?

Hint...it was NOT some 50 and Fabulous shrieker..

It was., in part.....drum roll.....our own EXTRAORDINARY David Venable!!!!

From Qurate's Investor Transcript for the first quarter 2024:

"In January, we aired a 24-hour event, Now You're Cooking, that was anchored by Lake Crusade's Today's Special Value.

The day included six hours of additional live stream content featuring several celebrities and food experts, including Carla Hall, Zephyri Zagakuren [ph], and our own Vanessa Herring and David Venable.

Over 3 million households tuned in to QVC throughout the day on linear TV, making it one of the highest Sundays for viewership in the quarter. "

Note...."Lake Crusade" is Le Creuset!!!! ( Took me a bit to figure that out....must use AI to trasncribe the Investor call!!!).

"Linear TeeVee' is old fashioned non streaming TeeVee.

Note that VIEWERS are NOT buyers.

Here's some of what's slated for the future:

"Busy Philipps, who has more than 2 million followers on Instagram, is returning to late night to host the talk show Busy This Week exclusively on our QVC+ streaming platform.

She is bringing celebrity interviews, laugh out loud moments, personal stories and her favorite curated pping thoughts.

The show will premiere tonight at 10:00 PM Eastern.

The first 10 episodes will be released weekly and will air four holiday themed episodes in November and December. Busy's show will be a shop the set, shop the look series, which means everything you see on the show, such as clothing, decor and props, is easily shoppable .."

How much do LOL moments sell for I wonder?!?!?

Thsi IS a shopping venue is it not????

If you want to see the whole transcript....Put in your search bar:

Qurate Retail, Inc. (NASDAQ:QRTEA) Q1 2024 Earnings Call Transcript

You do NOT need a degree in finance to understand it....it's a narrative of interesting topics they reported on thier investor call on May 8 for the first quarter of 2024.

10 minute easy read.

So instead of speculation, this is from the horse's mouth!!!

Re: Age of Possibility: Will QVC, HSN Revenue Ever Rise? It’s Down 4% In The First Quarter

chrystaltree — Mon, 13 May 2024 18:24:36 GMT

Don't know. Don't care. They are open and doing business as usual and that's all I care about. You can always contact QVC and ask to attend their next board meeting.

Re: Age of Possibility: Will QVC, HSN Revenue Ever Rise? It’s Down 4% In The First Quarter

Desert Lily — Mon, 13 May 2024 18:46:14 GMT

I agree with @NYCLatinaMe "...improve profit margins" can include increasing the markup. If there was a previous markup of 400% on an item, it may be changed to 800% or more.

A $10 cost x 400% = old retail price

A $10 cost x 800% = new retail price

Operating expenses (advertising, warehousing, etc.) for the $10 item affect the profit margin and would need to be subtracted.

If too high of a markup is implemented, some customers may refuse to purchase; that results in fewer customers and fewer quantities sold. It can be tricky balance; how much will a specific target market bear b4 higher markups/higher prices have a negative impact on a business? Prices may be higher, but income is lower.