Q Talk

[Spurt]

I thought this was interesting. Here's the 2017 first quarter results for QVC---(both QVC and QVC USA/QVC INTERNATIONAL)

The highlights---

• QVC consolidated revenue down 2% to $2.0 billion
• QVC US revenue down 3%, operating income flat and adjusted OIBDA(2) grew 3%
  • Adjusted OIBDA margin(2) expanded 130 basis points
• QVC International grew constant currency(3) revenue 2%, operating income 20% and adjusted OIBDA 15%
  • Local currency sales gains in all consolidated international markets except UK

QVC

"We are proud the US team delivered significant improvement in our sales trend," said QVC President and CEO Mike George. "While we recognize further gains are needed, our first quarter results show tremendous progress from the second half of 2016. Our International business continued to generate strong results and we are very pleased with our outstanding margin gains in both segments."

QVC US experienced year over year declines in the home, jewelry, electronics and accessories categories, which were partially offset by gains in apparel and beauty. Increases in operating income margin and adjusted OIBDA margin primarily reflect lower fixed costs, higher product margins, higher credit card income and customer service efficiencies.

zulily

"While sales came in lower than expected, we were primarily challenged by comping the performance of a few large brands year-over-year, and we saw improved sales growth later in the quarter," said zulily President and CEO Darrell Cavens. "We remain excited about our upcoming calendar, new customer acquisition strategies to grow our active customer base, and initiatives focused on delivering an exceptional customer experience."

http://ir.libertyinteractive.com/releasedetail.cfm?ReleaseID=1025506

[millieshops]

@SpurtI just heard a 15 minute financial analysis of where the economy is generally and retail more specifically.  QVC's dip probably looks good compared to many of its competitors because the Q1 results for lots of retail were bad  This analyst is one of those who manages an 18+billion dollar fund -  and while he specifically said he thought individual investors (that would be me) should stay away from retail, the so-called experts should be looking for bargains because companies that need to raise cash have to sell into the current market whether they like it or not.  True to his statement that individual investors shouldn't be buying retail stovcks, he did not name any of the companies he is buying for his funds.

I haven't looked at Q1 figures for Macys or Kohls or Nordstrom for several months, but I can tell you they had all lost more than QVC last time I checked.  Things may not be as bleak as they seem, but I was happy to hear I probably haven't most much good by shying away from buying retail stocks.

By the way, I'm not surprised by retail's problems.  Compared to what I used to spend, I'm down about 75% -- and for me that drop is by choice.

[sunshine45]

i always find it interesting that there are GAINS in apparel and beauty.......especially since that seems to be what MOST tend to complain about on these boards. of course, these boards are just a very tiny microcosm of their customers.

[Spurt]

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@millieshops wrote:

@SpurtI just heard a 15 minute financial analysis of where the economy is generally and retail more specifically.  QVC's dip probably looks good compared to many of its competitors because the Q1 results for lots of retail were bad  This analyst is one of those who manages an 18+billion dollar fund -  and while he specifically said he thought individual investors (that would be me) should stay away from retail, the so-called experts should be looking for bargains because companies that need to raise cash have to sell into the current market whether they like it or not.  True to his statement that individual investors shouldn't be buying retail stovcks, he did not name any of the companies he is buying for his funds.

I haven't looked at Q1 figures for Macys or Kohls or Nordstrom for several months, but I can tell you they had all lost more than QVC last time I checked.  Things may not be as bleak as they seem, but I was happy to hear I probably haven't most much good by shying away from buying retail stocks.

By the way, I'm not surprised by retail's problems.  Compared to what I used to spend, I'm down about 75% -- and for me that drop is by choice.

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@millieshops

And yet other retailers are making changes to turn the tide, if QVC just maintains the status quo they will find themselves in the same trouble that Sears and Macy's are in.(interesting that you chose Macys and other retailers that have been in serious trouble to compqare to QVC)......what's the definition of insanity---doing the same thing and expecting different results............Why oh Why do they continue to devote the majority of their weekends to show electronics which have continued to show sales declines for several years now.....OR continue to show vacuums on weekends---and home good sales are down---how many vacuums does one need???  It doesnt take a rocket scientist to see where improvements can be made..........

http://www.homeworldbusiness.com/theres-no-retail-apocalypse/

https://www.thestreet.com/story/14043442/1/fitch-retailers-being-battered-by-shift-to-online-shoppin...

Other retailers like the TJ Maxx companies (TJ's, Home Good, Marshalls) are doing well, and of course Amazon keeps rolling along-Wal Mart has made improvements to their online shopping and seen positive results, Wayfair sales are up.  Millenials dont like to spend money on expensive clothes so of course Nordstroms and other higher priced stores are suffering.  Its a different retail world and to survive retailers, including QVC, must adapt or face the consequences....having a second channel to show the same limited products and emphasizing Facebook isnt the answer..........QVC just cant sit on their laurels and say "oh well retail overall isnt doing that great"....... 

[Spurt]

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@sunshine45 wrote:

i always find it interesting that there are GAINS in apparel and beauty.......especially since that seems to be what MOST tend to complain about on these boards. of course, these boards are just a very tiny microcosm of their customers.

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@sunshine45

Since beauty and apparel were down the last 2 quarters in 2016....the only way to go was up. Dont you remember the threads on the Fashion Forum and also on Q Talk from August 2016 and then again when the 4th quarter and yearly results came out?....Im sure all the recent Ezpays helped with their gains compared to last year ! Also I think the change in season helped with QVC enthusiast purchasing spring clothes.........

[sunshine45]

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@Spurt wrote:

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@sunshine45 wrote:

i always find it interesting that there are GAINS in apparel and beauty.......especially since that seems to be what MOST tend to complain about on these boards. of course, these boards are just a very tiny microcosm of their customers.

---

@sunshine45

Since beauty and apparel were down the last 2 quarters in 2016....the only way to go was up. Dont you remember the threads on the Fashion Forum and also on Q Talk from August 2016 and then again when the 4th quarter and yearly results came out?....Im sure all the recent Ezpays helped with their gains compared to last year ! Also I think the change in season helped with QVC enthusiast purchasing spring clothes.........

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i didnt go back and check the 3rd quarter, but in the 4th quarter apparel was actually UP. "The US (qvc in usa) experienced declines in jewelry, electronics and beauty, which were partially offset by gains in apparel, home and accessories."

[Kachina624]

The complaints are undoubtedly the result of them inundating customers with apparel and beauty programing because they are the ones making money.  I wonder how much the Wen fiasco has hurt Q's bottom line?  I hope they wise up and de-emphasize the Christmas in July romp this year. 

[NycVixen]

Apparel most likely saw gains due to fewer returns since it's more costly to do so especially on a $30-50 item versus higher priced items like jewelry.

[Kindaglitzy]

Maybe this explains why Peyton Kelly left. Also thought it was interesting to see Antonella selling computers on Q2 recently.

[Spurt]

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@sunshine45 wrote:

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@Spurt wrote:

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@sunshine45 wrote:

i always find it interesting that there are GAINS in apparel and beauty.......especially since that seems to be what MOST tend to complain about on these boards. of course, these boards are just a very tiny microcosm of their customers.

---

@sunshine45

Since beauty and apparel were down the last 2 quarters in 2016....the only way to go was up. Dont you remember the threads on the Fashion Forum and also on Q Talk from August 2016 and then again when the 4th quarter and yearly results came out?....Im sure all the recent Ezpays helped with their gains compared to last year ! Also I think the change in season helped with QVC enthusiast purchasing spring clothes.........

---

i didnt go back and check the 3rd quarter, but in the 4th quarter apparel was actually UP. "The US (qvc in usa) experienced declines in jewelry, electronics and beauty, which were partially offset by gains in apparel, home and accessories."

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@sunshine45

You are correct, I apologize the results I saw was for QVC International for the 4th quarter., my bad:

" In the third quarter QVC International experienced growth in the beauty, accessories and electronics categories, which were partially offset by declines in apparel, jewelry and home. " 
"In the fourth quarter QVC International experienced growth in all categories except apparel and jewelry. For the full year, QVC International experienced gains in all categories except apparel and jewelry for the full year."

And this was the article I was referring to, thee was a definite decline in clothing in the U.S. in one of the quarters but no one could figure out the brand that was causing the drop in women's clothing (the Q Execs didnt mention specific brands whose sales were down)---the ones not mentioned and possible candidates for clothing drop in sales were: Linea, Quacker Factory, Bob Mackie, Joan Rivers, Lisa Rinna, Dennis Basso, Women With Control, G.I.L.I

.

QVC Expects End of Year Rebound after Summer Drop in Women’s Clothing Sales

Posted By: Lance KnickerbockerPosted date: August 09, 2016

West Chester’s TV shopping network giant QVC saw its shares rebound five percent after falling to a three-year low of $21.61 after an unexpected drop in women’s clothing sales and higher than expected customer-loan losses this summer, writes Joseph N. DiStefano for Philly.com.

At the same time, Amazon reported improved clothing sales and video marketing to working-age women, causing some analysts to speculate that it is biting into QVC’s market share.

QVC CEO, Michael George, said in his quarterly conference call, that the company saw a deceleration in demand late in the previous quarter. However, he pointed out that according to its surveys, customers are not going to Amazon instead of QVC.  

“The biggest drop was clearly in fashion, which had been the thing that was propelling our business,” he said, comparing the drop to the last recession. “The sales shortfall is with our best customers,” he continued, saying that those are heavy users who can make dozens of QVC purchases monthly.

Most QVC key brands continue to perform well, with Logo, Isaac Mizrahi, Susan Graver, and Denim & Co. all recording increases in sales this year.Home-security, fitness and garden sales were also strong. Sales were weaker in jewelry and consumer electronics, but that's been a longer-term trend at QVC. Kitchen-equipment sales have also slipped.