QVC UK’s revenue grew a scant 1 percent in local currency in the
full year 2011, reports parent company Liberty Interactive in its
annual results announcement. The increase in revenue for the full
year was primarily due to strong sales of home and apparel
products, which were negatively affected by a disappointing
performance in jewellery sales. In the fourth quarter, QVC UK
recorded a 1 percent dip due to declining electronics and
jewellery sales, which were buoyed by an increase in revenues
from beauty products.
Measuring performance in US dollars, QVC UK recorded a 5 percent
rise in revenues in 2011 to $626 million. Operating income before
depreciation and amortisation (OIBDA) was up 2 percent to $111
million for the full year. However, in local currency (GBP) this
represents a 1 percent decline. The decrease in adjusted OIBDA
was blamed on increased freight costs and higher programming
distribution costs associated with QVC’s new second channel, QVC
Beauty.
In related news, it is understood that US-based QVC has acquired
ecommerce website Send the Trend, a start-up offering
personalised accessories such as sunglasses, scarves and fashion
jewellery. Terms of the deal were not disclosed.
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