E-commerce accounts for more than half of QVC’s US sales
August 5, 2016 02:21 PM
E-commerce accounted for more than half of television and multichannel e-retailer QVC Group’s U.S. Q2 sales for the second time.
QVC, No. 10 in the Internet Retailer Top 500 Guide, reported U.S. e-commerce sales of $727 million during the quarter, up 11% from $655 million last year. E-commerce represented 50.9% of QVC’s overall U.S. sales in the quarter, compared to 46.6% a year ago. The first time e-commerce represented more than half of QVC’s U.S. e-commerce sales was in Q4 2015, when it accounted for 52.4%. It dipped to 49.6% in Q1 before rebounding in Q2.
At zulily.com, which QVC’s parent company Liberty Interactive Corp. acquired in October 2015, revenue reached $366 million in the quarter, with the 23% growth driven by a strong increase in number of orders, plus a slight jump in average order value, the retailer says. It wasn’t all rosy for zulily.com during the second quarter, however. The division posted a $43 million loss in operating income.
QVC’s investments in mobile commerce continue to pay off, as mobile now comprises 58% of total e-commerce orders globally, up 900 basis points from 49% this time last year.
Mobile orders at zulily represented 63% of total sales, compared to 56% in Q2 of 2015. Zulily had 5.0 million customers as of the end of the quarter, up slightly from 4.9 million last year.
During the quarter, QVC launched new product detail pages on its sites in Germany, United Kingdom and the United States. with a mobile-first design strategy, and increased video elements, QVC CEO Mike George told analysts on a conference call today.
For the period ended July 31, 2016, QVC reported:
- $939 million in global e-commerce revenue, up 11% from the second quarter of 2015. The web comprised 45.5% of total sales globally, versus 42.4% last year.
- $2.06 billion in total sales, up 3.0% from $2.00 billion.
- $727 million in U.S. e-commerce sales, up 11.0% from $655 million. Online sales represented 50.9% of total sales, up from 46.6%.
- Total sales in the U.S. of $1.43 billion, a 1.4% increase from $1.41 billion.
- QVC International sales reached $635 million, up 7.3% compared with $592 million.
- Net income of $127 million, up 13.4% from $112 million in the second quarter of 2015.