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 U.S. web sales in Q2 increased 8.3%, while domestic and total revenue decreased 2.5% and 4.5%, respectively. For the first two quarters, U.S. web sales grew 7.3%.
U.S. web sales registered higher for QVC Inc. in the second quarter.
In the second quarter ended June 30:
- U.S. domestic web sales increased 8.3% to $314.7 million from $290.5 million. QVC does not break out international web sales.
- Total U.S. sales decreased 2.5% to $1.15 billion from $1.18 billion in the second quarter of 2008.
- Total sales, including international, decreased 4.5% year over year to $1.68 billion from $1.76 billion.
- The web accounted for 27.4% of QVC’s domestic sales in Q2 compared with 24.6% in Q2 2008.
- Operating income decreased year over year 4% to $243 million from $253 million.
“Although we still have some hard work ahead of us, we see this improved sequential performance as a positive indication that we are on the right course with our product and programming initiatives and that our productivity and cost control initiatives have taken hold,” says Mike George, CEO of QVC, No. 11 in the Internet Retailer Top 500 Guide. “The company continues to invest in strategic infrastructure initiatives with the rollout of new Internet, customer relationship management and broadcast management platforms in the next six to twelve months.”
For the first half of the year:
- U.S. domestic web sales increased 7.3% to $622.7 million from $580.5 million.
- Total U.S. sales decreased 6.4% year over year to $2.20 billion from $2.35 billion.
- Total sales, including international revenue, decreased 7.1% year over year to $3.27 billion from $3.52 billion.
QVC’s parent company is Liberty Media Corp. Liberty’s other e-commerce businesses, which include Provide Commerce, Backcountry.com, Bodybuilding.com and BuySeasons.com, increased revenue by about 31% in the second quarter to $252 million from $191.9 million in the prior year.
“The increase in revenue was primarily driven by strong organic growth at all e-commerce companies combined with two small acquisitions made during 2008,” Liberty says.