Dive Brief:
- Qurate Retail Group on Wednesday reported first-quarter revenue fell 11% year over year to $2.3 billion, according to an earnings announcement. Q1 revenue at QVC U.S. and HSN, the company’s main banners, fell 4% from $1.6 billion to $1.54 billion. Within that unit, the company said sales declines in home and apparel were partially offset by growth in accessories and jewelry.
- E-commerce revenue at QVC and HSN was nearly flat in Q1 at $958 million; e-commerce was 62% of revenue for the two banners. QVC international revenue fell 3% to $572 million. And revenue for the company’s Cornerstone banner — comprised of four home and lifestyle apparel brands — decreased in Q1 due to continued softness in the home sector.
- Total operating income fell 18% year over year to $145 million, while the company swung to a net loss of $1 million from a net income of $20 million last year.
Dive Insight:
Qurate CEO David Rawlinson said Q1’s results demonstrate continued turnaround momentum.
“We are successfully delivering on our transformation initiatives to reduce costs and improve product margins while prioritizing enhanced merchandise, brand launches and celebrity partnerships which are hallmarks of the QVC and HSN brands,” Rawlinson said in a statement. “We are focused on achieving our stated objectives throughout 2024 and positioning the business for sustainable future growth.”
One of the company’s recent growth initiatives is its Age of Possibility Q50 campaign, which launched last month. The video commerce retailer has tapped 50 female celebrities and entrepreneurs over age 50. They will help guide and influence QVC’s programming and product offerings. The group includes Christina Applegate, Queen Latifah, Naomi Watts, Kathie Lee Gifford, Billie Jean King, Joy Bauer and Martha Stewart.
“QVC has a longstanding relationship serving the 50+ customer, and we’re uniquely positioned to launch this dedicated effort that we hope will spur a cultural shift in attitude and behavior towards women over 50,” Annette Dunleavy, QVC’s vice president of brand marketing, said in an April statement.
The company on Wednesday, however, also acknowledged that its cash decreased by $19 million in Q1. Qurate said capital expenditures offset cash from operations and net borrowings during the quarter. Qurate’s debt grew $14 million in the first quarter as additional borrowings under QVC’s bank credit facility more than offset debt repayment.
Although the company made a $423 million principal payment on senior secured notes due in April, the group’s total debt grew by nearly 3% to almost $5.5 billion, the earnings report shows. Qurate’s financial position landed the company on Retail Dive’s bankruptcy watch list last year.
Qurate sold its Zulily banner last May to investment firm Regent. Zulily went out of business late last year. Beyond, the parent company of Bed Bath & Beyond and Overstock, bought Zulily's IP and brand assets for $4.5 million in March and plans to relaunch the online retailer later this year.
