Qurate Retail Group, Inc. (QRTEA) Misses Q2 EPS by 1c, Revenues Miss

Qurate Retail Group, Inc. (NASDAQ: QRTEA) reported Q2 EPS of $0.45, $0.01 worse than the analyst estimate of $0.46. Revenue for the quarter came in at $3.17 billion versus the consensus estimate of $3.24 billion.

Second quarter operating results:

• Qurate Retail revenue of $3.2 billion
  • Qurate Retail eCommerce revenue of $1.9 billion
• Qurate Retail reported EPS of $0.40 and adjusted EPS(2) of $0.45
• QVC US revenue up 4% as reported, up 2% on a comparative basis excluding impact of new accounting standards regarding credit card income
  • Total QVC mobile penetration was 66% of QVC.com orders, a 320 basis point increase
• QVC US mobile penetration was 65% of QVC.com orders, a 300 basis point increase
• HSN operating income margin decreased due to purchase accounting, while adjusted OIBDA(2) margin increased due to reduced promotional activity and progress on cost saving initiatives
• zulily revenue grew 13%, operating loss decreased 7% and adjusted OIBDA(2) grew 12%
• Strong customer growth at QVC and zulily

“We continued our sales growth at QVC and the strong momentum at zulily, as well as initial profit improvement at HSN as we implement our operating strategies,” said Mike George, Qurate Retail’s President and CEO. “We are showing solid early execution on strategic priorities to expand and engage our customer base across platforms and achieve attractive operating synergies. Qurate realized strong growth in its total customer count, led by zulily and QVC, and significantly grew customer engagement as we increased exposure on emerging video and social platforms and continued to strengthen our performance marketing capabilities. Qurate Retail’s unique position at the intersection of key trends in retail, together with our operational execution, will set a strong foundation to drive sustainable growth and long term value creation.”

For earnings history and earnings-related data on Qurate Retail Group, Inc. (QRTEA) click here.

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