QVC feels high street gloom
The slowdown in the UK retail sector weighed on QVC in the third quarter. The homeshopping channel’s UK operations experienced a slowdown in the sale of hobby and craft products, and in accessories. Although units shipped increased by 3% in the third quarter the average selling price declined 2% in local currency.
UK growth was just 1%, but revenues in Germany increased by 8% and in Japan by 11% leading to an overall increase of 11% to $568 million, including benefits from favourable currency fluctuations.
International adjusted OIBDA increased 6% in the third quarter from $86 million to $91 million, but adjusted margins resulting from higher product margins and higher commissions in the UK and Japan left little room for growth.