Englewood, Colo. – Sales of home goods helped offset flagging apparel sales at the Qurate Retail properties during the second quarter.
Cornerstone generated the biggest revenue increase, up 18% to $277 million. The catalyst was strong demand in home brands, especially at Frontgate, Ballard Designs and Grandin Road. Operating income for the division jumped 117% to $13 million thanks in part to higher product margins.
Revenue at the QxH division, which consists of QVC and HSN, rose 7% to $2 billion. Growth in the home, electronics and beauty categories offset declines in apparel and jewelry. Operating income shrank 4% to $280 million due to a mix of promotional offers, severance pay and higher warehouse and freight costs.
Revenue for the total company, which also includes the Zulily and QVC International divisions, increased 10% to $3.4 billion for the quarter. Online revenue jumped 19% to $2.2 billion and accounted for 64% of total revenue. Adjusted net income rose 10% to $226 million, or $0.54 per share.
Qurate president and CEO Mike George praised the team’s agility in dealing with shifting consumer needs amid the COVID-19 pandemic.
