QVC’s U.S. web sales climb by 12% in fiscal 2013
March 6, 2014 04:56 PM
Liberty Interactive reported web and mobile sales growth for its TV and web retailer unit QVC Inc. in fiscal 2013.
E-commerce growth “remains strong,” Mike George, CEO of QVC told Wall Street analysts on the company’s year-end earnings call last week, according to a transcript by Seeking Alpha. “And in the U.S. we hit an important milestone in December with e-commerce representing 50% of total revenue in the month.” Mobile commerce orders increased 56% globally, George said, “and now represent 35% of e-commerce. In both the U.K. and Japan mobile orders are now more than half of all e-commerce.”
For the 2013 fiscal year ended Dec. 31, Liberty Interactive, No. 5 in the 2013 Internet Retailer Top 500 Guide, reported:
- Revenue for Liberty Interactive increased 2.9% to $10.31 billion from $10.02 billion in 2012.
- U.S. web sales for QVC increased year over year by 12.1% to $2.50 billion from about $2.23 billion.
- U.S. QVC mobile sales of $745.3 million, up by 67.3% from $445.6 million.
- QVC international web sales were$741 million for 2013. The company did not break out international web sales for 2012.
- Total sales for QVC increased 1.2% to $8.62 billion from $8.52 billion.
- U.S sales for QVC increased 4.5% to $5.84 billion from $5.59 billion.
- The web accounted for 42.8% of QVC U.S. sales compared with 40% in 2012.
- Total international sales for QVC decreased 5.1% to $2.78 billion from $2.93 billion.
- Total sales for Liberty Interactive’s remaining e-commerce business, which includes Provide Commerce Inc., Backcountry.com Inc., Bodybuilding.com LLC, Celebrate Interactive Holdings Inc. and other subsidiaries, grew year over year about 12% to $1.68 billion from $1.50 billion.
- Operating income increased 0.9% to $1.13 billion from $1.12 billion.
Excluding QVC.com, Liberty Interactive’s e-commerce businesses also grew by 8% in the fourth quarter, Chris Shean, chief financial officer, told analysts on the earnings call. “The increased revenue was a result of increased marketing efforts, which draw additional traffic; investments in site improvements; increased shipping charges and overall broader inventory offerings,” Shean said.
For the fourth quarter Liberty Interactive reported:
- Revenue for Liberty Interactive increased 2.9% to $3.23 billion from $3.14 billion in the fourth quarter of 2012.
- U.S. web sales for QVC increased 11.8% year over year to $873 million from $781 million.
- Total sales for QVC increased 1.9% to $2.74 billion from $2.69 billion.
- U.S sales for QVC increased 5.5% to $1.93 billion from $1.83 billion.
- International sales for QVC decreased 6.4% to $809 million from $864 million.
- The web accounted for 45.2% of QVC U.S. sales compared with 42.7% in the fourth quarter of 2012.
- Mobile commerce sales grew year over year 56.3% to $275.9 million from $176.5 million and accounted for 31.6% of total Q4 U.S. e-commerce sales.
- Total sales for Liberty Interactive’s remaining e-commerce business grew 8% year over year to $487 million from $451 million.
- Operating income increased 5.8% to $404 million from $382 million.