QVC Group Q2 revenue falls 7% on lower shipments

Overview

• QVC Group Q2 revenue decreases 7% in USD, 9% in constant currency

• Operating loss of $2.3 bln due to $2.4 bln impairment charge

• QVC International revenue up 3% in USD, down 3% in constant currency

Outlook

• Company diversifying sourcing to mitigate tariff uncertainty

• Company expanding social and streaming business revenue

• Company notes continued decline of linear television and volatile consumer confidence

Result Drivers

• QxH REVENUE DECLINE - Driven by a 13% decrease in units shipped and lower shipping and handling revenue, partially offset by a 1% increase in average selling price

• IMPAIRMENT CHARGE - Operating loss primarily due to a $2.4 bln non-cash impairment charge related to goodwill and tradenames

• FULFILLMENT COSTS - Higher freight rates and labor costs led to increased fulfillment pressure, affecting adjusted OIBDA margin

Key Details

Press Release: ID:nPn3kXg5a