US media conglomerate Qurate Retail's Q1 FY21 sales up 14% to $3.3 bn

10 May '21

2 min read

Pic: Garnet Hill

Qurate Retail, a US-based media conglomerate and provider of e-commerce services, has reported 14 per cent revenue growth to $3.3 billion in its first quarter (Q1) FY21 ended on March 31, 2021, compared to the revenue of $2.9 billion in the same period previous fiscal. The company’s net earnings for Q1 FY21 rose to $224 million (Q1 FY20: loss $9 million).

“We generated outstanding results across all our businesses and markets,” Mike George, president and CEO of Qurate Retail, said in a press release. “Our performance demonstrates the competitive advantage of our business model. We operate at the inflection point of accelerated online shopping, wide adoption of video streaming and growing consumer engagement on digital platforms.”

For the three-month period, Qurate Retail’s e-commerce revenue jumped 19 per cent to $2.1 billion, representing 61 per cent of the total revenue. The e-commerce service provider’s cost of retail sales stood at $2.2 billion ($1.9 billion), whereas operating income was $373 million ($231 million).

Sales of QxH business unit during Q1 FY21 increased 8 per cent to $1.9 billion ($1.8 billion) reflecting continued demand for home products, growth in customers and favourable customer returns. QxH reported strong growth in home, electronics and accessories, partially offset by a decline in apparel.

While QVC International sales surged 22 per cent to $774 million ($635 million), and Zulily’s sales were up 19 per cent to $377 million ($316 million). Cornerstone’s revenue improved 41 per cent to $250 million ($177 million) due to strong demand in its home brands (Frontgate, Ballard Designs and Grandin Road). Garnet Hill sustained revenue growth on the strength of apparel and home textiles, as company stated.

“The progress we’ve made through years of strategic investment to capitalise on these trends positions us as a world leader in video, digital, mobile and social commerce. This past year has solidified our confidence in the long term prospects for the business,” George added in the release.

Fibre2Fashion News Desk (JL)

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