topic Re: Q DID WHAT? QVC 4th QUARTER RESULTS in Q Talk

Q DID WHAT? QVC 4th QUARTER RESULTS

Spurt — Wed, 01 Mar 2017 02:01:21 GMT

Well QVC released it's 4th Quarter results (October, November, December and the Christmas season).......so how did they do?????????????

Consolidated QVC revenue down 1% to $8.7 billion in 2016
QVC International revenue in local currency increased in all markets in the fourth quarter
- QVC International revenue grew 3% on a constant currency(2) basis
zulily revenue grew 14% to $1.5 billion(3) and operating loss was $152 million in 2016, driven by approximately $223 million of amortization of intangible

"Internationally, QVC continues to perform well, while domestically we are focusing on strengthening a few merchandise categories that have been weak," said Greg Maffei, Liberty Interactive President and CEO. "zulily finished the year strong and we took advantage of the stock pullback to repurchase $255 million of QVCA shares."

QVC GROUP - For the quarter, QVC Group's revenue decreased 3% to $3.1 billion, operating income was roughly flat at $384 million, adjusted OIBDA(4) decreased 2% to $610 million, net income decreased 16% to $188 million and adjusted net income(5) decreased 15% to $266 million. For the full year, QVC Group'srevenue increased 11% to $10.2 billion, operating income decreased 14% to $1.0 billion, adjusted OIBDA increased 3% to $1.9 billion, net income decreased 26% to $473 million and adjusted net income decreased 8% to $812 million.

"Our international segment generated strong results in the quarter with broad-based sales gains and margin expansion," said QVC president and CEO Mike George. "The sales trend in our US business persisted from the third quarter primarily due to continued headwinds in select categories. We have strong action plans in place and are confident in our ability to return the US business to growth."

As we begin 2017, we are serving a large, engaged customer base, and we are creating competitive advantages as we further extend our reach across digital and next generation commerce platforms. We will leverage these strengths to build on our highly differentiated shopping experience."

QVC's consolidated revenue decreased 5% in the fourth quarter to $2.7 billion and decreased 1% to $8.7 billion in 2016

QVC's US revenue decreased 7% to $1.9 billion in the fourth quarter and 2% to $6.1 billion in 2016. In the quarter, average selling price per unit ("ASP") decreased 8% to $56.78, units sold increased 1%, and returns as a percentage of gross product revenue improved 32 basis points. The US experienced year-over-year declines in all categories except apparel. For the year, ASP decreased 6% to $57.00, units sold increased 2%, and returns as a percentage of gross product revenue improved 104 basis points. The US experienced declines in jewelry, electronics and beauty, which were partially offset by gains in apparel, home and accessories.

QVC's international revenue was flat at $711 million in the fourth quarter and increased 3% to $2.6 billion in 2016. The quarterly revenue performance included the net impact of unfavorable exchange rate fluctuations. On a constant currency basis, international revenue increased 3% in the quarter, reflecting gains in all markets. Units sold and ASP in constant currency each increased 1% in the quarter. QVC Internationalexperienced growth in all categories except apparel and jewelry. For the full year, international revenue on a constant currency basis increased 3%. Units sold increased 3% and ASP in constant currency was flat. QVC International experienced gains in all categories except apparel and jewelry for the full year.

http://ir.libertyinteractive.com/releasedetail.cfm?ReleaseID=1014970

Re: Q DID WHAT? QVC 4th QUARTER RESULTS

skuggles — Wed, 01 Mar 2017 02:03:05 GMT

I think their attempts to improve things are visible in the minor changes to the fashion lines. Otherwise, I'm not feeling hopeful about chances of making themselves more relevant, unless they start attending to all categories, especially the quality and value components.

Re: Q DID WHAT? QVC 4th QUARTER RESULTS

Mz iMac — Wed, 01 Mar 2017 02:11:04 GMT

QVC International headman making rain....

Re: Q DID WHAT? QVC 4th QUARTER RESULTS

KathyPet — Wed, 01 Mar 2017 02:14:53 GMT

SO interesting. US revenues decreased 7-9% in the fourth quarter which includes the all important holiday season. Not good. OVerall US revenues decreased 2% in 2016 with declines in all categories except apparel. EVidently THere are a lot of people who are pleased with the QVC clothing offerings.

Re: Q DID WHAT? QVC 4th QUARTER RESULTS

Spurt — Wed, 01 Mar 2017 02:21:19 GMT

My thoughts---well could've told you the results without even looking based on the comments from QVC customers on the Forum.......

QVC USA continues their struggles....even QVC'S U.S. CEO indicates that some merchandise categories continue to be weak.......The U.S. experienced year over year declines except in apparel--

The US experienced declines in jewelry, electronics and beauty, which were partially offset by gains in apparel, home and accessories.

I think its rather puzzling that QVC continues their emphasis on eletronics and inundates us with so many beauty shows and even Beauty IQ as sales decline......... Meanwhile some of us have been begging for more home/accessory shows which continue to do well---we even suggested a decor show with Alberti who has a definite talent for home design and style....but of course QVC regulated him to Beauty IQ.....

Revenue was down 7% in the 4th quarter and 2% overall for the entire year of 2016---this doesn't signal a successful Christmas shopping season..... There was a measley 1% increase in sales....

Again, QVC's U.S. CEO said---

The sales trend in our US business persisted from the third quarter primarily due to continued headwinds in select categories. We have strong action plans in place and are confident in our ability to return the US business to growth."

To return the US to business growth means, their business isn't growing...

Re: Q DID WHAT? QVC 4th QUARTER RESULTS

Kachina624 — Wed, 01 Mar 2017 02:27:04 GMT

Well, that explains the numerous fashion shows. There is a 2-day extravaganza planned for this week-end. Seems like they're trying to reawaken the jewelry sleeping giant. I hope they're successful. They and the competition have way too many beauty shows and everything is available w/o shipping charges locally. They're boring to watch even for the fans of such shows. Philosophy suds over and over.

I wish I was more adept at analyzing and interpreting the figures. Anyone else have any insight?

Re: Q DID WHAT? QVC 4th QUARTER RESULTS

Spurt — Wed, 01 Mar 2017 02:28:49 GMT

@KathyPet wrote:
SO interesting. US revenues decreased 7-9% in the fourth quarter which includes the all important holiday season. Not good. OVerall US revenues decreased 2% in 2016 with declines in all categories except apparel. EVidently THere are a lot of people who are pleased with the QVC clothing offerings.

@KathyPet

I think QVC has developed a loyal customer base for some of its designers---to me it's a puzzlement because I find QVC's apparel---not competitive in terms of price, the quality has decreased, and their sizing is inconsistent......I returned so many clothing items that I have just given up and shop elsewhere...... For those that like the designers and clothing that's great, but it won't get me to keep watching, shopping, and buying.....

Re: Q DID WHAT? QVC 4th QUARTER RESULTS

Spurt — Wed, 01 Mar 2017 02:30:29 GMT

@stevieb

I know you rarely watch or buy anymore from QVC.....but do you have any thoughts......I know you and I and many others could have predicted these results....

Re: Q DID WHAT? QVC 4th QUARTER RESULTS

Spurt — Wed, 01 Mar 2017 02:38:17 GMT

@Kachina624 wrote:
Well, that explains the numerous fashion shows. There is a 2-day extravaganza planned for this week-end. Seems like they're trying to reawaken the jewelry sleeping giant. I hope they're successful. They and the competition have way too many beauty shows and everything is available w/o shipping charges locally. They're boring to watch even for the fans of such shows. Philosophy suds over and over.

I wish I was more adept at analyzing and interpreting the figures. Anyone else have any insight?

@Kachina624

Once they find something that's selling....it turns into OVERKILL---which explains emphasis on fashion (with a higher price tag than they used to be a few years ago).....Just like Valerie Parr Hill spheres which they announced have sold over 250,000 ....so let's keep showing and trying to sell them.....There comes a time when you have to reach a satuaration point and also bore your audience to death.....and QVC has certainly done this with their beauty/cosmetics as well!!!! Every weekend its either IT Cosmetics, Argan Oil, Philosophy--scrub a dub dub....ZZZZZZZZZZZZ

Well David M is gone, and we are seeing more of Peyton, and I like you Kachina hope QVC revives their jewelry category, looks like they are trying with more jewelry shows.....I have many wonderful pieces that I purchased from QVC classic styles, good quality, still looking great, and going strong....

Re: Q DID WHAT? QVC 4th QUARTER RESULTS

KathyPet — Wed, 01 Mar 2017 02:44:51 GMT

So revenue for beauty products has declined so they start a entirely separate Beauty channel to,flog products that have declining sales. Left scratching head!

Re: Q DID WHAT? QVC 4th QUARTER RESULTS

Spurt — Wed, 01 Mar 2017 02:57:32 GMT

@Kachina624 wrote:

I wish I was more adept at analyzing and interpreting the figures. Anyone else have any insight?

@Kachina624

Well we can compare it with one competitor HSN:

Fourth Quarter 2016 Results vs Fourth Quarter 2015 Results

HSNi's net sales decreased 2% to $1.1 billion. Net sales at HSN decreased 1% to $769.3 million and Cornerstone's net sales decreased 5% to $304.0 million. C

HSN’s sales increased in wellness, culinary and electronics, offset by decreases in jewelry, apparel and accessories and in shipping revenue.

The decrease in shipping revenue was primarily due to changes in the standard shipping rates, which became effective in last August, as well as increased promotions.

Isn't that interesting that HSN excelled in electronics.......and wellness of all things (must be those HSN's vitamins) ......But have problems with their jewelry, apparel and accessories ....The decrease in shipping revenue was primarily due to changes in the standard shipping rates, which became effective in last August, as well as increased promotio

Re: Q DID WHAT? QVC 4th QUARTER RESULTS

Spurt — Wed, 01 Mar 2017 02:58:37 GMT

@KathyPet wrote:
So revenue for beauty products has declined so they start a entirely separate Beauty channel to,flog products that have declining sales. Left scratching head!

@KathyPet

Yep Kathy....things that make you go ....hmmmmmmm.....SAY WHAT????????????????

Re: Q DID WHAT? QVC 4th QUARTER RESULTS

Pearlee — Thu, 02 Mar 2017 01:41:58 GMT

From the report: "... and we are creating competitive advantages as we further extend our reach across digital and next generation commerce platforms."

Oh really? What competitve advantages? As a customer, I'm failing to see them. Esp. given how much it costs to try something on that doesn't work out. And Q completely lost me with handbags and shoes (except for one handbag with reduced shipping I broke down and purchased). Otherwise those two items are a no-go for me. It costs to much just too get them home and try them if they don't work out.

Does anyone perceive the "competitive advantages" they are supposedly creating?

How are they going to compete with places that offer free S&H and free returns?

Re: Q DID WHAT? QVC 4th QUARTER RESULTS

Sooner — Wed, 01 Mar 2017 03:11:16 GMT

I think their customers are saturated on makeup, house-brand ceramics, and cheap kitchen gadgets. It's stale stale stale! And I don't think they are keeping up with changing demographics and trends at all

They did this so well when they started. . .

Re: Q DID WHAT? QVC 4th QUARTER RESULTS

KathyPet — Wed, 01 Mar 2017 03:18:30 GMT

And yet the beauty product market has seen huge growth over the last few years so where is the failure by QVC to translate this surge into sales for them???

Re: Q DID WHAT? QVC 4th QUARTER RESULTS

Kachina624 — Wed, 01 Mar 2017 03:27:44 GMT

@Spurt QVC has been a Godsend for me. Due to my bunged up back I can no longer browse in stores so I buy all my clothes there and from online sources. I buy a few kitchen and garden items, that's about all. If I buy jewelry it's from Michael at Evine. I buy most cosmetics from Amazon. No longer listen to the Q "for company". Can't stand most of the hosts.

Re: Q DID WHAT? QVC 4th QUARTER RESULTS

Spurt — Wed, 01 Mar 2017 03:39:06 GMT

@Kachina624 wrote:
@Spurt QVC has been a Godsend for me. Due to my bunged up back I can no longer browse in stores so I buy all my clothes there and from online sources. I buy a few kitchen and garden items, that's about all. If I buy jewelry it's from Michael at Evine. I buy most cosmetics from Amazon. No longer listen to the Q "for company". Can't stand most of the hosts.

@Kachina624

Sorry to hear about your back.

I used to buy a lot from QVC from clothing, to kitchen gadgets, household appliances, bedding, home decor, jewelry, shoes, 2 and only 2 cosmetics, the merchandise was so unique, even left it on in the background........Now I only watch AM STYLE (mostly because nothing else is on at that time on Saturday morning other than old news) and a couple of vendors I like. I shop both in local stores and online---QVC is not the only game in town and I am now finding better merchandise, quality, price, shipping, from other retailers that provide me with the SAME convenience as QVC without the repetition and annoying hosts!!! --- and why does QVC seem to headlne and give the most shows to the annoying of the annoying hosts!!!!

Re: Q DID WHAT? QVC 4th QUARTER RESULTS

Kachina624 — Wed, 01 Mar 2017 03:49:45 GMT

@KathyPet wrote:
And yet the beauty product market has seen huge growth over the last few years so where is the failure by QVC to translate this surge into sales for them???

@KathyPet Have you seen the competition? Both HSN and Evine have frequent days when the beauty shows are non-stop. When that Skinn guy shows up at Evine's door, he's on for hours and hours; same for Adrienne at HSN. The profit on that junk must be huge. Too many vendors on too long.

Re: Q DID WHAT? QVC 4th QUARTER RESULTS

Mz iMac — Wed, 01 Mar 2017 03:50:40 GMT

To pick up US sales, Q needs to do the following for starters....

#1 - Diversity in their vendors/products.

#2 - Bring in some new young hip clothing & jewelry designers. I want to see some "fresh" ideas along w/the old standby's.

Sidebar: Does anyone know the average age of US QVC shoppers as well as those in the UK?

Re: Q DID WHAT? QVC 4th QUARTER RESULTS

Spurt — Wed, 01 Mar 2017 03:51:20 GMT

@Pearlee wrote:
From the report: "... and we are creating competitive advantages as we further extend our reach across digital and next generation commerce platforms."

Oh really? What competitve advantages? As a customer, I'm failing to see them. Esp. given how much it costs to try something on that doesn't work out. And Q completely lost me with handbags and shoes (except for one handbag with reduced shipping I broke down and purchased. Otherwise those two items are a no-go for me. It costs to much just to get them home and try them if they don't work out.

Does anyone perceive the "competitive advantages" they are supposedly creating?
How are they going to compete with places that offer free S&H and free returns?

@Pearlee

QVC Execs live in a fantasy world----I don't see any "competitive advantages" either....unless they are talking about EZ PAY......and putting their shows online like Beauty IQ.....they equate digital and social media with "advantages" but ALL companies can do the SAME thing......the only advantage QVC has is "old fashioned" TV where they can demonstrate and showcase their products.....(Walmart, Target, and other retailers don't have that....) Your right free S&H (or even reduced S&H and free returns is an ADVANTAGE to QVC COMPETITORS!!!