QVC shoppers stay at home
By Julian Clover | February 26, 2009 | 09:14 UK
Revenues at QVC fell by 8% in the fourth quarter to $2.14 billion (€1.68bn) as the homeshopping channel faced up to the poor consumer environment at home and abroad.
QVC’s US domestic revenue decreased 12% in the fourth quarter to $1.48 billion and 6% for the year to $4.91 billion. International revenues decreased slightly on the quarter to $655 million, hindered further by unfavourable exchange rates in the UK and Germany, though the same market forces helped increase annual revenues by 9% to $2.39 billion.
QVC Germany increased its revenue by 6% and 3% on Q4 and the year as a whole. The average selling price was decreased by 3% and 2% respectively, rewarded by an increase in units shipped of 10% and 6%, though reducing gross margins.
QVC UK experienced a decrease in revenues of 4% in the fourth quarter, but increased 2% on the year. Unlike Germany, the UK division was able to increase the selling price by 3% in the fourth quarter, though this remained flat across the year. Units shipped declined 6% for the quarter but increased 2% for the year.