topic Re: Qurate 2022 First Quarter Report Condensed in Community Chat

Qurate 2022 First Quarter Report Condensed

Foxxee — Mon, 09 May 2022 05:11:35 GMT

Fri, May 6, 2022, Yahoo.com

ENGLEWOOD, Colo., May 06, 2022--(BUSINESS WIRE)--Qurate Retail, Inc. ("Qurate Retail") (Nasdaq: QRTEA, QRTEB, QRTEP) today reported first quarter 2022 results(1).

"We took important first steps in our turnaround, with a focus on stabilizing our core US vCommerce business and setting the foundation for accelerating growth in streaming. We restructured the organization and leadership of the QVC US and HSN brands, formed a new dedicated streaming business unit and attracted a proven leader at Zulily," said David Rawlinson, President and CEO of Qurate Retail.

"Our first quarter results reflect the continued challenges of operating amidst extreme supply chain disruptions. We don’t believe this quarter’s results reflect the long-term underlying health of our businesses. In addition, heightened inflationary pressure and the situation in Ukraine led to depressed consumer sentiment, and we experienced a larger-than-expected operational disruption related to the December fire at our Rocky Mount, NC fulfillment center. While our turnaround will take time, and progress may be not be a straight line, we are starting from a position of strength with scale in our television and streaming reach, a strong financial profile, and core competencies in building consumer engagement."

First quarter 2022 operating results:

Qurate Retail revenue decreased 14% to $2.9 billion
- In constant currency(2) revenue decreased 12%
- eCommerce revenue decreased 14% to $1.8 billion or 61% of total revenue
Qurate Retail reported diluted EPS of $0.00
- Adjusted diluted EPS(3) of $0.15
QxH revenue decreased 13%
QVC International revenue decreased 13%
- In constant currency, revenue decreased 7%
Zulily revenue decreased 38%
Cornerstone revenue increased 19%

Re: Qurate 2022 First Quarter Report Condensed

BalletBabe — Mon, 09 May 2022 05:51:45 GMT

IMO Sales will not pick up.

Prices are way tooooooo high

Hosts don't give enough information about the products

Hosts are causing people to not watch or turn the channel

Shipping is a nightmare

Returns are a nightmare

Re: Qurate 2022 First Quarter Report Condensed

Johnnyeager — Mon, 09 May 2022 10:27:09 GMT

A number of very troubling indicators.

Net cash flow from operations was negative for the quarter. Not a sign of a healthy business.

The balance sheet is a mess. Current Liabilities exceed Current Assets.

Very large debt payments coming due.

Cash generation is crucial, so I certainly wouldn't expect many big sales or markdowns.

This retail model is profoundly broken, in my view.

I would focus solely on being a competitive online retailer, where they may be able to compete on product and pricing.

The expense of the broadcast operation is untenable. Cost savings from closing the studios and headcount would be enormous.

(Maybe lease that studio space for movie and television production to generate some extra cash.)

Re: Qurate 2022 First Quarter Report Condensed

chrystaltree — Mon, 09 May 2022 12:02:29 GMT

It will take all retailers years to fully recover from the pandemic. That's just part of the problem. There's a ton of competition now, QVC/HSN aren't the only game in town now. The big kahuna, Amazon is their biggest threat along with all the thousands of online stores. Amazon is bigger, better and faster. I think the challenge for all shopping channels is how to attract younger shoppers who have money to spend with losing their current older shoppers. I do think eventually, as they as their core customer continues to age and die out, they'll be forced to end tv shopping and become an online store. Of course that is in the future, a decade or two from now.

Re: Qurate 2022 First Quarter Report Condensed

Johnnyeager — Mon, 09 May 2022 12:19:29 GMT

A decade? No way. They can't survive that long doing business as usual. Cash burn is killing them. Things move too quickly. They need to act fast. My opinion.

Re: Qurate 2022 First Quarter Report Condensed

Teddixat — Mon, 09 May 2022 12:24:49 GMT

@BalletBabe Prices are too high everywhere not just at the Q. I'm not saying they aren't high at the Q but this is a problem in every facet of our lives. Has anyone had to purchase a hot water heater, a new AC system. It isn't just clothing and it's every retailer.

Re: Qurate 2022 First Quarter Report Condensed

Pecky — Mon, 09 May 2022 12:34:45 GMT

@Foxxee Thanks for posting the condensed version, all I need is the simple facts. Things are only going to get worse with interest rates going up, prices are crazy on everything like gas and food. People are going to spend their money on what they need. Plus it doesn't help that the younger generation are not watching or ordering from shopping channels. I have a nieces that never even heard of QVC. They shop Amazon mostly. Once the older generation phases out, there isn't a another generation to take over. Times have changed that's for sure.

Re: Qurate 2022 First Quarter Report Condensed

manny2 — Mon, 09 May 2022 12:41:17 GMT

@Johnnyeager wrote:
A number of very troubling indicators.

Net cash flow from operations was negative for the quarter. Not a sign of a healthy business.

The balance sheet is a mess. Current Liabilities exceed Current Assets.

Very large debt payments coming due.

Cash generation is crucial, so I certainly wouldn't expect many big sales or markdowns.

This retail model is profoundly broken, in my view.

I would focus solely on being a competitive online retailer, where they may be able to compete on product and pricing.

The expense of the broadcast operation is untenable. Cost savings from closing the studios and headcount would be enormous.

(Maybe lease that studio space for movie and television production to generate some extra cash.)

I agree with you @Johnnyeager "This retail model is profoundly broken" it is an outdated model that worked 35 years ago. They have to reinvent the wheel to survive.

They want to attract a younger demographic. I don't see that happening with the current structure. That is why they turned to e-commerce. The problem is how do you attract that group initially. Millennials are not sitting down and watching QVC like their older counterparts do. The lineup of products don't speak to a younger demographic either.

Re: Qurate 2022 First Quarter Report Condensed

Pecky — Mon, 09 May 2022 13:04:05 GMT

Another thing against them is the returns. It's to expensive to return on any shopping channel. An example is, I was interested in ordering a pair of Dansko sandals that was on yesterday, it does have free shipping, but when I looked on Amazon it was free shipping & returns and I get them tomorrow. Why would I order here? Should I need to return them, I get a refund within a few hours of dropping them off at UPS or Kohls.

Re: Qurate 2022 First Quarter Report Condensed

Caaareful Shopper — Mon, 09 May 2022 13:44:53 GMT

Streaming.

Major business analysts, including Forbes, say Livestreaming is a must if retailers intend to stay alive. Last year it really took off in earnest. Macys, Nordstrom, and other major retailers started livestreaming sales last year. Apparel, beauty, home goods -- all livestreamed. U.S. sales are estimated to reach $25 Billion by 2023 in livestreaming alone.

QVC has only recently stepped it's foot in the pond of livestreaming. But it's only doing chats and behind the scenes stuff, as far as I've seen. Their streaming channels have limited direct sales. QVC seems to be playing catch-up, trying to hold onto their old antiquated sales model. They are trying to entice their core demographic to come on over to streaming, but they must realize for most of that core, they never will. Those new customers during the past two years? It looks like the charts say they've dropped right off significantly. Necessity did not turn into loyalty.

So they continue with corny questions of the day on Facebook, and hosts who are encouraged to do story time and act frantic. That old Call to Action sales technique doesn't work when your computer systems keep acting up, and your processing & delivery times are getting worse.

I'll still continue to root for QVC. My hope is that they can turn results around very quickly and already have great improvements in the works that we haven't seen yet.

Re: Qurate 2022 First Quarter Report Condensed

Othereeeen — Mon, 09 May 2022 14:08:42 GMT

On my Direct TV Satellite service, I noticed the broadcast of QVC 2 andQVC 3 appear to have suddenly gone back to NON-HD service...the pictures are terrible and blurrred and the fonts are all crazy on the prices....

I wonder if it costs more to broadcast content in HD?

I have not called Direct TV about it...not important enough...but wondered if anyone else noticed this?

I don't stream programs. Just something that I've noticed recently.

Re: Qurate 2022 First Quarter Report Condensed

Othereeeen — Mon, 09 May 2022 14:09:46 GMT

Why pay TWO hosts to hawk thier wares?

Re: Qurate 2022 First Quarter Report Condensed

geezerette — Mon, 09 May 2022 16:54:10 GMT

@manny2 wrote:
@Johnnyeager wrote:
A number of very troubling indicators.

Net cash flow from operations was negative for the quarter. Not a sign of a healthy business.

The balance sheet is a mess. Current Liabilities exceed Current Assets.

Very large debt payments coming due.

Cash generation is crucial, so I certainly wouldn't expect many big sales or markdowns.

This retail model is profoundly broken, in my view.

I would focus solely on being a competitive online retailer, where they may be able to compete on product and pricing.

The expense of the broadcast operation is untenable. Cost savings from closing the studios and headcount would be enormous.

(Maybe lease that studio space for movie and television production to generate some extra cash.)
I agree with you @Johnnyeager "This retail model is profoundly broken" it is an outdated model that worked 35 years ago. They have to reinvent the wheel to survive.

They want to attract a younger demographic. I don't see that happening with the current structure. That is why they turned to e-commerce. The problem is how do you attract that group initially. Millennials are not sitting down and watching QVC like their older counterparts do. The lineup of products don't speak to a younger demographic either.

The younger people also will not pay for shipping or returns.

Re: Qurate 2022 First Quarter Report Condensed

BalletBabe — Mon, 09 May 2022 23:11:55 GMT

@Othereeeen wrote:
Why pay TWO hosts to hawk thier wares?

@Foxxee @geezerette @Caaareful Shopper @Pecky If any of you follow Linda Moss you should read the posts. IMO QVC is in trouble. I will post a few here. Stand by

Re: Qurate 2022 First Quarter Report Condensed

BalletBabe — Mon, 09 May 2022 23:13:48 GMT

New comment on Homeshoppingista's Blog By Linda Moss

Bertie

commented on QVC, HSN Revenue Plummet 13% in First Quarter, Blame Warehouse Fire And Inflation

In response to homeshoppingista:

U.S. consumer sales in general have risen over the past few months, despite rampant inflation, but that wasn’t the cases at QVC or HSN. Not a good first quarter or a good look for the new CEO of the parent of the two home shopping networks, Qurate Retail. Revenue for QxH slid from to $1.684 […]

I agree with all up thread. QVC has turned into a 3 ring circus . The quality of products, for the most part, on both channels has seriously declined. And the prices, .
Sure, the fire made some impact. But putting HSN under Qurate, and letting the Q go pajama party, has had a negative impact. Better products at lower prices, shipping deals, and hosts that don’t look and act like idiots, please.

Re: Qurate 2022 First Quarter Report Condensed

BalletBabe — Mon, 09 May 2022 23:14:58 GMT

New comment on Homeshoppingista's Blog By Linda Moss

Karen

commented on QVC, HSN Revenue Plummet 13% in First Quarter, Blame Warehouse Fire And Inflation

In response to homeshoppingista:

U.S. consumer sales in general have risen over the past few months, despite rampant inflation, but that wasn’t the cases at QVC or HSN. Not a good first quarter or a good look for the new CEO of the parent of the two home shopping networks, Qurate Retail. Revenue for QxH slid from to $1.684 […]

It’s ridiculous the prices they charge. For a solid colored Susan Graver t-shirt or other vendor, $30-$50! As my aunt once told me, if you get a solid t-shirt, people don’t know if you bought it from Walmart or Macy’s!!!

Re: Qurate 2022 First Quarter Report Condensed

Foxxee — Tue, 10 May 2022 01:53:37 GMT

@BalletBabe wrote:
@Othereeeen wrote:
Why pay TWO hosts to hawk thier wares?
@Foxxee @geezerette @Caaareful Shopper @Pecky If any of you follow Linda Moss you should read the posts. IMO QVC is in trouble. I will post a few here. Stand by

@BalletBabe

At a 13% loss, I agree QXH is in trouble.

Re: Qurate 2022 First Quarter Report Condensed

BalletBabe — Tue, 10 May 2022 03:08:46 GMT

@Foxxee wrote:
@BalletBabe wrote:
@Othereeeen wrote:
Why pay TWO hosts to hawk thier wares?
@Foxxee @geezerette @Caaareful Shopper @Pecky If any of you follow Linda Moss you should read the posts. IMO QVC is in trouble. I will post a few here. Stand by
@BalletBabe

At a 13% loss, I agree QXH is in trouble.

@Foxxee I turn it on and who is on again? JT I am done. I am not watching which means I won't be buying.