National Jeweler Network

Financial Reporting

Jewelry sales sluggish for HSN, QVC in Q2

August 08, 2014

New York--Multimedia retailers HSN and QVC reported that sales increased in the second quarter, with the strength of other categories offsetting poor jewelry sales for both.

QVC’s U.S. revenue was up 3 percent in the period, while HSNi, the parent company of on-air and online retailer HSN, said the retailer’s sales increased 6 percent. E-commerce activity also continued to account for a higher share of overall sales for both.

Highlights from the first quarter results of the two companies are below.

QVC
QVC’s U.S. revenue was up 3 percent to $1.4 billion in the second quarter, due to strength in all categories except electronics and jewelry, while operating income for the retailer was down 2 percent during the period.

According to results released Tuesday by parent company Liberty Interactive Corp., e-commerce revenue rose by 7 percent $588 million, and revenue from QVC.com as a percent total of U.S. revenue is up to 43 percent.

Mobile drove more than one-third of the digital orders, comprising 37 percent of sales on QVC.com.

The average selling price per unit was up slightly, increasing 1 percent from $56.39 to $57.05.

QVC’s total revenue in the three-month period was up 3 percent year-over-year, increasing from $1.96 billion in 2013 to $2.01 billion in 2014.

“Our second quarter performance reflects the strategic action we are taking to extend our highly differentiated retail model across geographies and commerce platforms,” said QVC President and CEO Mike George.

HSN Inc.
HSN Inc., the parent company of on-air and online retailer HSN, reported Thursday that the retailer’s sales were up 6 percent to $556.5 million in the second quarter.

Online sales proved to be a bright spot, increasing 11 percent, with the digital sales penetration increasing from 35.4 percent to 37.2 percent.

The multimedia retailer said that sales grew in beauty, home design, health and culinary to offset lower sales in electronics and jewelry.

Operating income in the three-month period also was up 11 percent, from $47 million last year to $52.1 million in 2014. The average price point for HSN rose 2 percent to $57.62.

“Our focus during the second quarter remained on engaging our customers, emphasizing our unique content and proprietary products, and strengthening our digital platforms,” said HSNi CEO Mindy Grossman.