Englewood, Color. – Cornerstone reported record revenue growth at each of its brands for the fourth quarter and full year.
Other divisions in Qurate Retail’s stable had a tougher go of it in the fourth quarter, with supply chain constraints putting a squeeze on product availability.
“In the fourth quarter, we managed through a number of continuing challenges and are not pleased with the performance,” said David Rawlinson, president and CEO of Qurate Retail. “We feel confident in our ability to deliver, although we know it will take time to improve some aspects of the business and innovate.”
Cornerstone benefited from strong growth in its home brands – Frontgate, Ballard Designs and Grandin Road – as well as demand for apparel and home products at Garnet Hill. Revenue for the division rose 8% to $357 million during the quarter and 16% to $1.2 billion for the full fiscal year.
The QxH division – the QVC and HSN shopping networks – reported declines primarily in home and electronics due to product scarcity, partially offset by growth in apparel and beauty in Q4. Revenue fell 7% to $2.4 billion in the quarter and declined 3% to $8.3 billion for the full year.
The Zulily brand was hardest hit – again due to supply chain problems as well as marketing challenges. Revenues tumbled 30% to $351 million during the quarter and fell 11% to $1.45 billion for the year.
Consolidated Quarter Retail revenue decreased 9% to $4.1 billion in Q4 and ticked down 1% to $14 billion for the fiscal year. E-commerce revenue was down 9% to $2.6 billion in the quarter and decreased 1% to $8.8 billion for the year.
Operating income for the quarter shrank to $7 million from $530 million in prior-year period. Full-year operating income fell 31% to $1.1 billion.