The e-retailer reports a $126 million net loss, stemming from a $640 million year-over-year increase in spending in the quarter on technology and content ...
QVC’s domestic web sales grew by 12.8% in the third quarter while overall U.S. sales rose by only 2%. The web accounted for 21% of QVC’s Q3 U.S. sales, compared with 19% in the prior year.
U.S. web sales for QVC Inc. grew moderately in the third quarter while overall sales rose slightly.
QVC.’s domestic web sales grew by 12.8% in Q3 to $246.5 million from $218.6 million in the prior year. At the same time QVC, a unit of Liberty Media Corp. and No. 14 in the Internet Retailer Top 500 Guide, reported domestic revenue of $1.17 billion vs. U.S. sales of $1.15 billion in the prior year.
Overall QVC in the third quarter had combined domestic and international operating income of $231 million on total sales of $1.68 billion, compared with total operating income of $257 million on sales of $1.65 billion in Q3 of 2006. In the third quarter, the web accounted for 21% of QVC’s U.S. sales, compared with 19% in the prior year. Liberty Media and QVC don’t break out international e-commerce sales.
"We are disappointed with the soft sales results in the U.S., driven in part by a sluggish retail environment and difficult year over year comparisons," says QVC CEO Mike George. "However, we chose not to adopt a heavily promotional focus in the quarter and were able to maintain stable margin rates despite the slower sales growth.”
QVC.com was re-launched in the third quarter with a new home page that features a cleaner layout, better organization, larger graphics and more video. “During the third quarter we successfully launched our new brand and logo and began testing our redesigned web site to strong reviews,” says George. “We are excited about these endeavors and believe they will have a positive long-term effect on the business."