Question-and-Answer Session
Operator
Thank you. Today's question and answer session will be conducted electronically. [Operator Instructions]. We will go first to Robert Peck with Bear Stearns.
Robert Peck - Bear Stearns & Co.
Hey guys, just two quick questions. I guess the first is give us sort of a bigger picture. As we think about the domestic growth of being about 4%, I think HSM domestic, ex-America store was around 3% or so. Both were not doing as well as maybe you had originally anticipated. Is there anything else bigger picture going on here besides the [ph] inventory issues and what have you? Are you losing industry share maybe to the internet with Amazon and eBay relatively and doing relatively strong quarters. Can you talk maybe just picture beyond the prices of gold, what's happened domestic, and I just have a follow up?
Gregory B. Maffei - President and Chief Executive Officer
I would start and then I will ask Mike or Meade or any of the other folks from QVC there to follow in. My perspective is that we have a business which we have always suggested has lumpy elements and that if you look at what we have put forth as our long-term growth rate the business exceeded that in '05 and exceeded that in '06 and is trailing it in '07 and we don't believe we need to change what our suggestive long term growth targets are. We do monitor that, we watch it and we think about it but we are comfortable that we can get back on track. I would... I don't think you're seeing radical change in how video commerce is used by the consumer versus e-commerce and in fact as you know an increasing percentage of our sales are e-commerce. So in the way it's more of a continuum of which we are part despite the success of eBay and Amazon.
I also would say that there is somewhat of a difference the performance at H and the performance at Q. While we clearly were disappointed to get 4% revenue growth domestically, I mean that was below our targets as we said. That was done with a pretty controlled cost structure and a pretty controlled maintained gross margin rather than what appears to have been just looking at the external numbers and the decline in operating performance at the EBITDA line, at the gross margin line, a far more promotional environment at H. So while we are disappointed and not satisfied with what we've got, I don't think it's the same animal as what occurred at H. You want to add something to that Mike.
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