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QVC, HSN Parent Company Warns Of Lousy Fourth-Quarter Results For Home Shopping Networks

by homeshoppingista

Qurate Retail, the owner of QVC and HSN, is warning investors that preliminary financial results for its fourth quarter are not good.

In a press release last week, Qurate said it "experienced lower-than-anticipated demand in the fourth quarter, negatively impacting expected sales." QxH, the division that includes both home shopping networks, saw its revenue drop an estimated 6.5% to 7.5%.

"Additionally, as previously disclosed, there was a tragic fire at the company’s QVC Rocky Mount fulfillment center in North Carolina on Dec. 18, 2021," Qurate said.

“Revenue performance at QxH deteriorated throughout the fourth quarter, deviating from initial trends indicated on our third-quarter earnings conference call," Qurate's new President and CEO David Rawlinson said in a statement. "We are not pleased with these results and are actively taking steps to improve our long-term performance across business units. We are looking forward to a new leadership approach at QxH and Zulily and the ongoing development of our long-term strategy."

The company will report its official fourth-quarter earnings on Feb. 25.

“Our hearts go out to our team members and the local community affected by the Rocky Mount fire, and we remain engaged in supporting the team members and residents," the CEO said. "We are still assessing the impact of the tragic fire in coordination with our insurance carriers.”

Qurate Retail has property and business-interruption insurance coverage, and is still in the process of assessing damage to the warehouse and inventory. It said it is submitting insurance claims to determine the recovery of certain fire-related costs in connection with the Rocky Mount fire.

QVC received an advance of $100 million from its insurance provider related to initial fire-related costs. Following the fire, QVC diverted incoming fulfillment orders to its other fulfillment centers and will continue to leverage its existing fulfillment center footprint in the near-term to mitigate the impact to business operations.

 
Honored Contributor
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Re: X=MAS SALES NOT GOOD

[ Edited ]
@ellaphant wrote:
Foxxee, your comment is incorrect. The New York Times reported despite inflation and supply issues retail sales were up 8.5% from 2020 and on line sales jumped 11.5%. Yes, Q did have a terrible fire but it was quite late in the shopping season. They need to rethink their overkill of pajamas and gourmet food offerings. Its obviously not working.

@ellaphant 

 

This from Fox Business and US News.

Retail sales unexpectedly fell in December as consumers pulled back on spending

 

U.S. retail sales unexpectedly declined in December, suggesting that consumers are pulling back on spending as they face surging prices and an acceleration in COVID-19 infections.

 
The value of total sales decreased 1.9% from the prior month, the Commerce Department said Friday, marking the steepest drop in 10 months. 
 
INFLATION SURGES 7% IN DECEMBER, HIGHEST IN 40 YEARS.

 

The so-called core retail sales, which excludes automobiles, gasoline, building materials and food services and is most closely correlated with the consumer spending aspect of the nation's gross domestic product, tumbled 3.1% last month.

 

"December was a rough month for the American consumer," said Anu Gaggar, global investment strategist for Commonwealth Financial Market.

 

"Between higher prices, empty shelves, consumers sick from omicron, and holiday shopping pulled forward, retail activity declined even more than expected, and November numbers were also revised lower."

 

The government reported earlier this week that the consumer price index climbed 0.5% in December, bringing the year-over-year gain to 7%, the highest since June 1982. Wholesale prices also increased, rising 0.2% in December and 9.7% in a 12-month period, the fastest pace since record-keeping began in 2010.

 

Restaurants and bars, which saw a stunning 41.3% annual gain in 2021, declined 0.8% in December as more Americans stayed home amid an unprecedented virus surge. Gas stations, meanwhile, saw a 41% surge in sales, but fell 0.7% in December. Gasoline prices fell 0.5% in December.

 

Just two categories saw sales increase in December: miscellaneous store retailers, up 1.8%, and building materials and gardening centers, which grew by 0.9%.

 
The data comes as the Federal Reserve looks to combat hotter-than-expected inflation by aggressively tightening monetary policy.

 

 

 

It's reported retail sales were down everywhere during December because of inflation; however, I think some of this can be blamed on QVC and HSN.  

 

More to come until someone fixes the problems and, yes, most of both can be fixed.  

Esteemed Contributor
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Foxxee, your comment is incorrect. The New York Times reported despite inflation and supply issues retail sales were up 8.5% from 2020 and on line sales jumped 11.5%. Yes, Q did have a terrible fire but it was quite late in the shopping season. They need to rethink their overkill of pajamas and gourmet food offerings. Its obviously not working.
Honored Contributor
Posts: 74,434
Registered: ‎03-10-2010

Considering the quality of the programming since Christmas, things aren't going to get better anytime soon.  This weekend is typical; a day of mattresses and athletic equipment with Rick and Kirsten at their unbearable best.  How many people are going to sit and watch this deadly boring fare?

 

Wake up QVC!

New Mexico☀️Land Of Enchantment
Esteemed Contributor
Posts: 7,241
Registered: ‎03-11-2010

I check in but usually don't watch.  When I do I see the same stuff over and over.  I see high prices of items I can buy elsewhere with no shipping cost.  I hear sales pitches that tell  me I better buy now since the price is about to go up. I rarely watch anything that actually focuses on the product itself.  Too much chatter about nothing. And if an item is something I may want I go directly to the Internet to see if I can get it elsewhere at a better price or another product just like it.  

Honored Contributor
Posts: 16,528
Registered: ‎03-09-2010

@bonnielu,

It's so true. Even if I like something on QVC, I will definitely go online to find it at a lower and more reasonable price elsewhere most of the time.

I do however have many times bought something of Valerie Parhill

s and used to from Kirk's Folly. But their prices have gone overboard recntly too. Inflation blah blah blah-on QVC things have been overpriced for several years. 

"If you walk the footsteps of a stranger, you'll learn things you never knew. Can you sing with all the voices of the mountains? can you paint with all the colors of the wind?"
Respected Contributor
Posts: 3,322
Registered: ‎12-27-2010

I don't understand why people want QVC to fail. This thread comes off that way to me. 

 

I don't get it. 

Esteemed Contributor
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Registered: ‎12-13-2010
Honored Contributor
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Registered: ‎06-25-2012

Re: X=MAS SALES NOT GOOD

[ Edited ]

Who even shops shopping channels anymore? That is soooo 80's! I used to shop the Q so much long ago but don't anymore. I'd rather shop in my local boutiques and shops. I'd rather put my money in the pockets of those who are struggling instead of the big store execs that are looking to buy their next private jet. SMH

"Pure Michigan"
Honored Contributor
Posts: 12,076
Registered: ‎03-09-2010

I'm not surprised at this alert from Q. Yes, the fire affected them. But other things were key factors.

 

The biggest problem is their programming. They keep showing the same dozen or so products (or variations of) week after week, month after month. It can't get much more boring. 

 

Q sells products that aren't able to be shipped in a reasonable amount of time. Reasonable to me means a max of 1 week for products in their warehouses and a max of 2-3 weeks when shipping from a vendor. This is still slower than other retailers.

 

Slower than molasses returns processing is a problem. 

 

Back-ups in shipping ports was another issue. There is still some delay but not like there was during the 4th quarter.

 

And let's not forget that almost everything Q sells can be found for lower prices, free shipping/returns, promo codes, elsewhere.