Will HSN Be Ensnared in Liberty's Web?
"We are disappointed with the soft sales results in the U.S., driven in part by a sluggish retail environment and difficult year-over-year comparisons," said Mike George, QVC's CEO. "However, we chose not to adopt a heavily promotional focus in the quarter and were able to maintain stable margin rates despite the slower sales growth."
QVC's third-quarter revenue was $1.69 billion, including a 2% rise in the U.S. to $1.17 billion and a 2% rise overseas to $512 million. Apparel sales increased while sales of gold jewelry and home products slipped. The unit's operating cash flow was down 1% to $364 million.
The company said sales were weak in its German and Japanese operations because of heightened competition and regulatory issues.
"The company continues to see pressure from a sluggish economy," says Jeffrey Shelton, analyst with Natixis Bleichroeder. "The results were less than my expectations and most people's expectations."On the other side of Liberty Media's business, which is tracked by Liberty Media Capital (LCAPA) shares, results were better thanks to the Starz Entertainment division. Revenue at Starz, a network of paid movie cable channels, rose 11% to $253 million. Its operating cash flow nearly doubled to $88 million, and Liberty said Starz had experienced continued subscriber growth and reduced programming costs. Liberty Media doesn't report net income figures for QVC or Starz Entertainment.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV