topic QVC Stock Down Significantly Today in Q Talk

QVC Stock Down Significantly Today

handygal2 — Fri, 05 Aug 2016 19:07:49 GMT

Many QVC shareholders are selling off their shares today. The price per share is down about 23% as of 3PM. Even though the acquisition of Zulily last year has helped, when you factor that out, revenue only increased 3% from last year. A weak retail environment in general is blamed. Here's the link to a brief article:

http://www.fool.com/investing/2016/08/05/why-liberty-interactive-corporation-shares-plunged.aspx

Re: QVC Stock Down Significantly Today

millieshops — Fri, 05 Aug 2016 19:17:48 GMT

I didn't look because I don't buy retail stocks individually, but in Bloomberg News this week there was a long article about the difficulty lots of retail chains are having. There was nothing about QVC in that article, but Macys and Nordies and JCP and others were mentioned.

Also mentioned was that there's a %50 drop in new outlet malls this year. The bigger, more upscale ones are okay, but lots of the smaller ones are in trouble along with the chains that went big into outlets - Coach and Banana Republic were both mentioned.

Re: QVC Stock Down Significantly Today

just wonder — Fri, 05 Aug 2016 19:19:19 GMT

If QVC doesn't get back to offering a wider variety in brands, especially jewelry brands and clothing brands, including shoes and handbags, their sales are going to continue to decline. We are so tired of seeing same old, same old presentations-namely too much Judith Ripka, Vionic, Clarks, Dooney & Bourke, Dyson, etc. etc. Remember, QVC, we used to have many, many more jewelry, especially sterling designers. I like JR, but just how much can one afford of her items? And there are tons of shoe and handbag companies out there! Please get back to more options on the Q

Re: QVC Stock Down Significantly Today

millieshops — Fri, 05 Aug 2016 19:23:56 GMT

If anyone is seeing this as a reason to gloat at how awful QVC has become - take a look at what has happened to Nordstrom over the past year. Absolutely not pretty.

Re: QVC Stock Down Significantly Today

mercyMe — Fri, 05 Aug 2016 19:25:12 GMT

That explains why "free shipping" throughout August for TSV's. Buying incentives will create a Buzz for the short term--perhaps we will see more free s&h while surviving the 6 mo. of holiday programming.

Re: QVC Stock Down Significantly Today

alliswell — Fri, 05 Aug 2016 19:30:20 GMT

@just wonder wrote:
If QVC doesn't get back to offering a wider variety in brands, especially jewelry brands and clothing brands, including shoes and handbags, their sales are going to continue to decline. We are so tired of seeing same old, same old presentations-namely too much Judith Ripka, Vionic, Clarks, Dooney & Bourke, Dyson, etc. etc. Remember, QVC, we used to have many, many more jewelry, especially sterling designers. I like JR, but just how much can one afford of her items? And there are tons of shoe and handbag companies out there! Please get back to more options on the Q

@just wonder I totally agree. . Not to mention mattresses & computers . . .

Re: QVC Stock Down Significantly Today

BalletBabe — Fri, 05 Aug 2016 19:30:40 GMT

I think that QVC would do better with offering a discount on shipping of the second item. That is not helping. I also think like otheres to much of the same merchandise. Need more variety. TSV are always the same, Dyson,clothes,etc. Way too many shoe shows. There are many shoe places online that sell shoes with no shipping either way. No they are not more expensive.

Re: QVC Stock Down Significantly Today

Havarti — Sat, 06 Aug 2016 03:27:54 GMT

Back when the shopping channels were getting going many big name vendors would not sell to them. At that time infomercials were “in” but having your products hawked on a 24/7 selling channel was not yet the “in” thing to do. The shopping channels found wonderful small vendors that wanted and needed exposure, but could not necessarily afford it. Shoppers found interesting things (sometimes totally bizarre things) that were not in their local stores and catalogs. When Barry Diller took over QVC, the training and traveling to sources for education was a big thing. Viewers learned about new things at the same time hosts were trained with more in depth knowledge to impart through their selling. For example, they used to travel to mines where stones for the jewelry were mined and the locals would teach you fascinating things about the area and the process of creating jewelry from that particular stone. It was a wonderful time – the shopping channels grew and the shoppers had access to unique items they had never seen before.

Once these channels became big behemoth sales operations the big companies wanted to sell their products and over time squeezed out the innovative creative products that had been offered. I think people will still spend the money if the right items are available. But now-a-days they order in 10,000 Dyson vacuums and push them on the same audience that bought the last 10,000 Dyson. And in 6 weeks they will do it again. It is too many of the same vendors, with the same products, pushed on the same audience. The sales pitch has become harder, pushier, and almost crisis-oriented…it is a turn off to so many shoppers.

Maybe it is time to look back at what worked in the past and see what can be learned and applied to today’s audience and marketplace. JMHO

Re: QVC Stock Down Significantly Today

homedecor1 — Fri, 05 Aug 2016 21:23:58 GMT

it's just not Q I'm sure - they opened new outlet mall, strip malls and stand alone stores this past year in our area (on going building of thousands of houses/condos).

No matter when I've gone to any stores inc. outlet it's never crowded or hardly anyone there.

There was a big article in the Tampa Times business section regarding HSN sales drop, profits down and lines they will be dropping.

Sadly, I think shopping channels have seen their "hay day" so many online retailers with better incentives to shop OR consumers are getting back to "brick & mortar" stores to shop. This weekend my paper is full of ads and incentive coupons - FL tax free weekend.

I've been enjoying "window shopping" brings back a simpler time in life (which is another memory of my childhood days) and I'm getting some added walking in!

Re: QVC Stock Down Significantly Today

PINKdogWOOD — Fri, 05 Aug 2016 21:29:59 GMT

Probably because of bad fall fashion days - not much even remotely good here today, not counting on tomorrow to be any different. And then there's CIJ that went on all month. BORING!

Vendors are few and far between these last few years and what they bring, too expensive for what they attempt to sell, everything looks the same and not much makes us 'run to the phones'.

Re: QVC Stock Down Significantly Today

Q4u — Fri, 05 Aug 2016 23:33:20 GMT

I hadn't been to an Outlet Mall in several years and decided to drive to one a few months ago.... a Coach store. Empty Mall, half the stores were gone. The Coach store was not the crowded, grabbing store I remembered... empty, really low prices. Selection wasn't much but I don't think they stocked it well because the Mall just doesn't get many people

Sad..... hope it turns around but many of the Malls (big and little) just aren't doing well here or within an hour's drive.

Re: QVC Stock Down Significantly Today

Q4u — Fri, 05 Aug 2016 23:38:07 GMT

I agree with the poster that said that the fashions all look the same.... they DO! They really do. I like the idea of today's TSV but I don't want another (ANOTHER) cardigan that flies away! It looks just like all the other fly away long cardigans I've seen....

Re: QVC Stock Down Significantly Today

libbyannE — Fri, 05 Aug 2016 23:46:51 GMT

@Havarti wrote:
Back when the shopping channels were getting going many big name vendors would not sell to them. At that time infomercials were “in” but having your products hawked on a 24/7 selling channel was not yet the “in” thing to do. The shopping channels found wonderful small vendors that wanted and needed exposure, but could not necessarily afford it. Shoppers found interesting things (sometimes totally bizarre things) that were not in their local stores and catalogs. When Barry Diller took over QVC, the training and traveling to sources for education was a big thing. Views learned about new things at the same time hosts were trained with more in depth knowledge to impart through their selling. For example, they used to travel to mines where stones for the jewelry were mined and the locals would teach you fascinating things about the area and the process of creating jewelry from that particular stone. It was a wonderful time – the shopping channels grew and the shoppers had access to unique items they had never seen before.

Once these channels became big behemoth sales operations the big companies wanted to sell their products and over time squeezed out the innovative creative products that had been offered. I think people will still spend the money if the right items are available. But now-a-days they order in 10,000 Dyson vacuums and push them on the same audience that bought the last 10,000 Dyson. And in 6 weeks they will do it again. It is too many of the same vendors, with the same products, pushed on the same audience. The sales pitch has become harder, pushier, and almost crisis-oriented…it is a turn off to so many shoppers.

Maybe it is time to look back at what worked in the past and see what can be learned and applied to today’s audience and marketplace. JMHO

An excellent and insightful summary.

Re: QVC Stock Down Significantly Today

libbyannE — Fri, 05 Aug 2016 23:50:04 GMT

@Q4u wrote:
I hadn't been to an Outlet Mall in several years and decided to drive to one a few months ago.... a Coach store. Empty Mall, half the stores were gone. The Coach store was not the crowded, grabbing store I remembered... empty, really low prices. Selection wasn't much but I don't think they stocked it well because the Mall just doesn't get many people

Sad..... hope it turns around but many of the Malls (big and little) just aren't doing well here or within an hour's drive.

What happened to Coach, besides the decline in designer handbag sales well documented in the industry, is that, unlike Dooney, they started making a different and obviously cheaper line of bags for the outlet stores. We gave a good outlet mall nearby, but I don't even bother to go into coach.

Re: QVC Stock Down Significantly Today

libbyannE — Fri, 05 Aug 2016 23:54:15 GMT

I certainly don't buy very much anymore. I took early retirement so how many clothes do I need?! And business trends stories have talked about the milennials not buying much, either. I would hate to be in the retail business these days.

Re: QVC Stock Down Significantly Today

itiswhatitis — Sat, 06 Aug 2016 01:22:55 GMT

@handygal2 wrote:
Many QVC shareholders are selling off their shares today. The price per share is down about 23% as of 3PM. Even though the acquisition of Zulily last year has helped, when you factor that out, revenue only increased 3% from last year. A weak retail environment in general is blamed. Here's the link to a brief article:

http://www.fool.com/investing/2016/08/05/why-liberty-interactive-corporation-shares-plunged.aspx

Meanwhile, Zulily is supposedly helping their bottom line. What to believe?

http://www.geekwire.com/2016/qvc-owned-zulily-sees-23-revenue-spike-366m-helping-home-shopping-giant-increase-profit/

Zulily is helping QVC post profits amid what the home shopping network calls a “choppy retail environment.”

Liberty Interactive Group, which owns QVC, posted its second quarter earnings on Friday. Net income for QVC increased 13 percent to $127 million, while revenue increased 21 percent to $2.4 billion.

“QVC continues forward in a choppy retail environment,” Liberty CEO Greg Maffei said in a statement.

Re: QVC Stock Down Significantly Today

StraytoStay — Sat, 06 Aug 2016 01:30:20 GMT

They did lower the upcoming price of Laura Geller's TSV and free shipping. Before, it was sixty (not sure if that had free shipping) now it will be fifty. I wouldn't have paid sixty for it. It has another travel size lip gloss which some complained in the beauty forum one of her TSV had small sizes. The value in TSV's hasn't been as good prior.

Re: QVC Stock Down Significantly Today

KathyPet — Sat, 06 Aug 2016 05:11:03 GMT

I find very few items to tempt me at QVC anymore. With the change to the shipping policy and the sizing now all over the place paying a extra $10.00 to try on and return clothing is not a chance I am willing to take. I can do much better at B&M stores. They used to offer unique items. Now it's mattresses, vacuum cleaners, computers and other electronics I can get better pricing on through other sources. Nope, not much to buy anymore.

Re: QVC Stock Down Significantly Today

TY — Sat, 06 Aug 2016 09:57:25 GMT

Looks like the old axiom of buy on the rumour and sell on the news is at play here. Both HSN and QVC's financials didn't impress investors who are bailing on retail stocks.

I also read Linda Moss' Homeshoppingista's blog as she's discussing both shopping networks' 2nd quarter's reports.

So is anyone really surprised? The economy isn't as healthy as people think and customers are not spending as much as before as they are being cautious and looking for bargains.

So jewelry sales and electronics are down once again at QVC. So how come there are endless hours of heavy rotation of electronics? No wonder why jewelry shows seem to be in the middle of the night. And the prices for sterling silver jewelry is very expensive given that silver is a cheap metal.

Re: QVC Stock Down Significantly Today

ChillyTulip — Sat, 06 Aug 2016 22:25:34 GMT

No shock here. I used to buy all the time but the past year or two I have cut way back. Huge price increases, high shipping charges, and stale merchandise was the ultimate trifecta affecting my QVC spending. They are becoming irrelevent in a sea of online retailers and simply can't compete.