About Qvc, Inc.
The phones are ringing off the hook at television home shopping company QVC (which stands for "quality, value, and convenience"). QVC and its subsidiary HSN (Home Shopping Network) offer about 1,400 items each week to TV-tied consumer shoppers. Merchandise includes apparel, cosmetics, electronics, housewares, jewelry, and toys. It broadcasts 24 hours a day; viewers call in their orders to one of its three US call centers. If you can't find what you're shopping for on the tube, it also sells online at QVC.com, through mobile apps, streaming services, and social media. The company has shopping channels in Germany, Japan, Italy, and the UK. QVC is a subsidiary of shopping and travel site operator Qurate Retail.
After steady but unspectacular growth for several years, the acquisition of HSN added roughly $2.2 billion to QVC's sales in 2018. It recorded total revenue of $11.3 billion in 2018, a 29% increase on prior year. Excluding the contribution from HSN, sales grew $309 million thanks to stronger sales in both the US and internationally.
QVC reliably reports healthy profits. Despite the jump in sales, net income fell 2% to $928 million in 2018 due to increases in impairment losses, acquisitions costs, and depreciation, mostly relating to the HSN acquisition.
QVC's cash on hand grew during 2018, ending the year $260 million higher at $550 million. The company's main cash uses were capital expenditures, television right payments, dividends, and debt payments.
With television viewership being eroded by other methods of content delivery, such as streaming services and social media, QVC's main preoccupation is to entice buyers across all forms of media. This thinking was behind the purchase of Home Shopping Network (HSN) in 2018, which is strong in non-TV channels, boasting an online shop, app, social pages, and an innovative "Shop By Remote" functionality that allows customers to make purchases with their remote. QVC and HSN were combined under a new entity called QxH in 2019 but the QVC and HSN brands will remain.
The extraordinary loyalty of QVC's customers (some 93% were repeat and reactivated customers in 2018, spending an average of more than $1,000 each year) strongly incentivizes the company to penetrate new markets in search of more goldmine customers. Its efforts to expand internationally have been rewarded with steady growth internationally. That being said, QVC's international expansion is not always successful: It closed its French operation in 2019, five years after launching in the country, having failed to gain a foothold.
1200 Wilson Dr
West Chester, PA 19380-4262
Phone: 1 (484) 701-1000
Employer Type: Privately Owned
Lead Training Partner: Tim Allen
President and CEO: Michael George
Senior Organizational Effectiveness Partner: Emily Reybitz
Employees (This Location): 2,800
Employees (All Locations): 20,400