M-commerce grows 45% for QVC in 2014
February 27, 2015 11:22 AM
TV and web retailer QVC Group finished 2014 with another solid year of online growth, and it was the mobile channel that grew the fastest.
For the year ended Jan. 31, QVC, No. 6 in the Internet Retailer 2014 Top 500 Guide reported:
- Total e-commerce revenue increased 9.0% to $3.533 billion from $3.242 billion in 2013.
- U.S. e-commerce sales increased year over year 9.6% to $2.740 billion from $2.501 billion.
- Mobile commerce sales grew 44.9% to $1.465 billion from $1.011 billion.
- Total sales increased 2.1% to $8.80 billion from $8.62 billion.
- E-commerce accounted for 40.1% of all sales compared with 37.2% in 2013.
- M-commerce accounted for 41.5% of e-commerce sales compared with 31.2%in 2013.
- Net income was $1.27 billion compared with $1.24 billion in the prior year.
“We generated strong consolidated operating leverage and margin expansion in both the fourth quarter and full year,” says QVC CEO Mike George. “We are well-positioned for 2015, entering the new year with the largest television reach, e-commerce and mobile penetration, and customer base in our history."
For the fourth quarter:
- Total e-commerce revenue increased 9.5% to $1.200 billion from $1.096 billion in the fourth quarter of 2013.
- U.S. e-commerce sales increased year over year 11.0% to $969.0 million from $873 million.
- Mobile commerce sales grew 42.5% to $523.2 million from $367.2 million.
- Total sales increased 1.5% to $2.78 billion $2.74 billion from $2.74 billion.
- E-commerce accounted for 43.2% of all sales compared with 40.0%.
- M-commerce accounted for 43.6% of all e-commerce sales compared with 33.5%.
- Operating income was $445.0 million compared with $273.0 million in the prior year.
In October parent company Liberty Interactive announced that it was transferring its e-commerce companies and QVC into two separate stocks.
QVC now operates under the QVC Group, and the rest of the company’s e-commerce companies operate as the Liberty Ventures Group. Liberty Ventures includes outdoor gear and apparel retailer BackCountry.com; supplement and fitness retailer Bodybuilding.com; drop ship and fulfillment vendor CommerceHub; and online invite company Evite.
Liberty Interactive sold another online retail business—Provide Commerce—to FTD Companies Inc. for $430 million in stock and cash.