topic Re: QVC Earnings for 3Q released.... in Among Friends

QVC Earnings for 3Q released....

Othereeeen — Fri, 04 Nov 2022 12:17:51 GMT

Qurate (QRTEA) released earnings for the third quarter this morning...

I think you better plan to visit...*

*Think terminal patient on support....

We can always hope...

Re: QVC Earnings for 3Q released....

CalminHeart — Fri, 04 Nov 2022 12:29:09 GMT

Wow, another lousy quarterly report. It might improve if they brought their systems, presentations, and products into this century.

Third quarter 2022 operating results:

Qurate Retail revenue decreased 13% to $2.7 billion
- In constant currency(2) revenue decreased 9%
- eCommerce revenue decreased 13% to $1.7 billion or 62% of total revenue
Qurate Retail reported diluted EPS of $(7.21), including impact of non-cash impairment recognized at QxH and Zulily related to tradenames and goodwill (additional detail below)
- Adjusted diluted EPS(3) of $(0.08)
QxH revenue decreased 8%
QVC International revenue decreased 21%
- In constant currency, revenue decreased 5%
Zulily revenue decreased 39%
Cornerstone revenue increased 8%

Other business headlines:

Completed sale and leaseback of five US properties in July for proceeds of $443 million
Entered into agreement for sale and leaseback of UK and Germany fulfillment centers for gross consideration of approximately £68 million and €97 million, respectively; expected to close first quarter 2023
- Cash proceeds expected to be used to repay debt
Received $180 million of insurance proceeds in third quarter related to Rocky Mount, NC fulfillment center fire; $280 million of insurance proceeds received year-to-date

Corporate Updates

On July 15, 2022, QVC, Inc. (“QVC”) and certain of its subsidiaries entered into a sale and leaseback agreement with investment vehicles managed by Oak Street, a division of Blue Owl, for five existing properties in Pennsylvania, South Carolina, Tennessee and Virginia. Under the terms of the agreement, QVC received a cash payment of $443 million, net of fees and other expenses. The average annual impact to adjusted OIBDA related to the sale and lease back transactions will be approximately $33 million.

Subsequent to quarter end, on November 2, 2022 and November 3, 2022, certain subsidiaries of QVC International signed agreements with investment vehicles managed by Oak Street, a division of Blue Owl, for the sale and leaseback of two existing properties in Germany and the UK. The sale and leaseback agreements are expected to close in the first quarter of 2023. Under the terms of the agreements, QVC will receive cash payments of approximately €97 million related to its German facility and approximately £68 million related to its UK facility before fees, taxes and other expenses.

Cash proceeds received by QVC were used and are expected to be used to repay debt upon each closing. The gain from each completed property sale in the relevant measurement period is included in operating income and within the covenant calculations under QVC’s bank credit facility.

Additionally in the third quarter, as a result of recent financial performance of certain subsidiary businesses, macroeconomic conditions including inflation and higher interest rates and a decline in its stock price, Qurate Retail initiated a process to evaluate those subsidiaries’ current business models and long-term business strategies. It was determined during the third quarter that an indication of impairment existed for the QxH and Zulily reporting units related to their goodwill and the HSN and Zulily tradenames. The impairment primarily reflects a significant increase in discount rates used, combined with recent business performance that is partially attributed to the challenged economic conditions. Non-cash tradename impairments in the amounts of $180 million for QxH (related to HSN) and $140 million for Zulily were recorded in the impairment of intangible assets line item in the consolidated statements of operations, and goodwill impairments were recorded in the amounts of $2.5 billion and $226 million for QxH and Zulily, respectively. These items are included in operating income and excluded from adjusted OIBDA.

Re: QVC Earnings for 3Q released....

Group 5 minus 1 — Fri, 04 Nov 2022 12:59:07 GMT

Are ny earnings up? OK maybe big oil.

Re: QVC Earnings for 3Q released....

cjm61 — Fri, 04 Nov 2022 13:02:40 GMT

Wow, and Zulily down 39%. Ever since Qurate took over Zulily it has gone downhill. I'm not surprised it's failing, but 39%? Yikes.

I hope QVC can pull themselves out of this hole but I know it's not the same QVC of the past and it will become even more drastically different than now, if it succeeds. Wish they would read our comments, perhaps they would see what is needed to help them bring up sales.

Re: QVC Earnings for 3Q released....

Pook — Fri, 04 Nov 2022 13:20:13 GMT

Just do not understand why a few here seem to care and relish in sales being down! It's not my company and I have no stock in it so what?!!! Right now most businesses comparable in size and actually most businesses are probably not showing much profit! So what if they go under? I would miss shopping here but there are other places to shop online!!

Re: QVC Earnings for 3Q released....

Bhvbum — Fri, 04 Nov 2022 13:20:33 GMT

What period of time are these numbers being compared to? We are leaving a period where people were at home, and spending lots. Of course that's going to come down now that people are back to work.

Also, with interest rates going up, buying is beginning to slow and that is the whole point of trying to curb inflation.

This is not just affecting QVC but retail across the board.

Re: QVC Earnings for 3Q released....

cjm61 — Fri, 04 Nov 2022 13:41:12 GMT

@Pook seem to care and relish in sales being down. And so what?!!!

I don't believe people are relishing the idea that sales are down. I can't say why others care but this is my reason. Before my grandma passed she sat and watched two things on her TV, the security video of cars arriving and leaving her complex and QVC. She felt QVC kept her company. She rarely bought anything but when we needed a gift for her she would always recommend an item from QVC. My mom does pretty much the same thing. This is "company" for many and makes them feel good, for whatever reason, they feel these hosts are "friends". And, they do purchase items. Whether we can relate or not doesn't matter.

Secondly, And so what?!!! ? Again, speaking for myself, I care about families and what happens if they lose their jobs due to QVC going out of business. Not just the hosts, but everyone behind the scenes, CS employees, the mods, stage crew, the companies who sell items on QVC, all the way down to a huge loss to shipping companies. It trickles down and we all pay.

I don't like the idea of any business closing even if there's other places to shop online!!

Re: QVC Earnings for 3Q released....

Effie54 — Fri, 04 Nov 2022 13:43:48 GMT

Whom ever the new CEO is, he's not doing his job! Get some new leadership.

Re: QVC Earnings for 3Q released....

brandiwine — Fri, 04 Nov 2022 13:44:15 GMT

I'm not surprised at all. People have to put the high cost of food, gas, and utilities first. If you have something left over then you can decide if you can go shopping. The Q is no longer my first choice for clothes. In my opinion, their clothes are overpriced and not great quality. When I go to a retail store I can use store coupons, try on the items I'm interested in, touch and look at the quality of the fabric, see how it looks and feels on me and then I don't have to pay extra to return it. QVC has lost touch with a great deal of their customers.

Re: QVC Earnings for 3Q released....

Vivian — Fri, 04 Nov 2022 13:45:11 GMT

In the 1990s I watched, and ordered from, QVC all the time. The alternative was the mall. It was so much easier to be entertained by charming hosts on TV, pick up the phone, and do some retail therapy while there was a blizzard outside. All that has changed. Ordering on the Internet allows us to shop while that same blizzard hits, but this time we don't have to pay overhead for hosts and studios. The novelty is gone. Streaming may soon outpace cable. We can choose what we watch and when. We no longer have to mark our calendars for special hours to shop. I don't see how shopping channels can survive.

Re: QVC Earnings for 3Q released....

Bookplate — Fri, 04 Nov 2022 13:46:47 GMT

Maybe Quarate can unload Zulily on Elon Musk.

Re: QVC Earnings for 3Q released....

On It — Fri, 04 Nov 2022 13:48:00 GMT

Fortunately, the people in the industry can recognize these numbers and interpret them for what they actually mean in our current state of flux.

Major companies are requiring their employees to return to the office. Flexible time throughout the day is gone. Leisure dressing is no longer possible for these employees. A company as large as QVC cannot turn on a dime. Even a small independent store orders apparel with a six month lead time. To receive thousands of an item would require a lot of advance planning. Have faith. Surely change is in the works that will meet today's needs and provide a more profitable future.

I hope they can turn a corner and find a profitable path. I am available if they are hiring old people with experience.

Re: QVC Earnings for 3Q released....

Pook — Fri, 04 Nov 2022 14:11:47 GMT

@cjm61 wrote:
@Pook seem to care and relish in sales being down. And so what?!!!

I don't believe people are relishing the idea that sales are down. I can't say why others care but this is my reason. Before my grandma passed she sat and watched two things on her TV, the security video of cars arriving and leaving her complex and QVC. She felt QVC kept her company. She rarely bought anything but when we needed a gift for her she would always recommend an item from QVC. My mom does pretty much the same thing. This is "company" for many and makes them feel good, for whatever reason, they feel these hosts are "friends". And, they do purchase items. Whether we can relate or not doesn't matter.

Secondly, And so what?!!! ? Again, speaking for myself, I care about families and what happens if they lose their jobs due to QVC going out of business. Not just the hosts, but everyone behind the scenes, CS employees, the mods, stage crew, the companies who sell items on QVC, all the way down to a huge loss to shipping companies. It trickles down and we all pay.

I don't like the idea of any business closing even if there's other places to shop online!!

I don't like the idea of any business closing and caring about the families and what happens to them if they loose their jobs is fine but those posting over and over about sales being down then state they hardly or never buy here anymore is not going to change anything. None of us can control what happens! A company cannot stay in business just to entertain anyone who buys little or not at all even if it is company for lonely older people. I have shopped here for 20 years but have no control over QVC or any business!!! In spite of the few that keep doomsday posting about QVC failing, I do not buy their claims that QVC is anywhere near bankruptcy!! I do not think anyone posting can actually know exactly what those reports mean even though they think they are so knowledgable!!

Re: QVC Earnings for 3Q released....

Shanus — Fri, 04 Nov 2022 14:05:16 GMT

Most of this financial info is lost on me...I'm an arts person, not a math type. I leave that to DH.

I'm not sure if these numbers reflect the recent debacle w/ new customers/free shipping which may have caused the loss of old, good customers (like me) who felt left out and ignored.

I agree that QVC is so behind the times with their old software, slow shipping, charging for shipping and returns, no real sales (others sites and B&M stores are and have been offering 40%-50% and no shipping charges in both directions), goofy shows that are painful to watch, endless repeated merchandise....Wow! So many reasons they're not doing great.

There are lots of ways to at least keep their heads above water, but they have not and doubtfully will not in the future listen to the customers.

Re: QVC Earnings for 3Q released....

Litlbitcountry — Fri, 04 Nov 2022 14:08:14 GMT

Don't understand the constant snarky comments on people's posts. People should have a right to express opinions about finances or anything else within reason without being told to "change the channel" or "shop somewhere else" or in this case "why do you care?"

Re: QVC Earnings for 3Q released....

kaydee50 — Fri, 04 Nov 2022 14:14:03 GMT

40 years ago the shopping channels were unique. Unfortunately, they have not been able to adapt to the times similar to Woolworth's, Sears and countless other stores that have gone under. Unlikely they will be able to turn things around. Trying to be "entertainment" is a major mistake IMO. Personally, I would not miss any of them.

Re: QVC Earnings for 3Q released....

Beguile — Fri, 04 Nov 2022 14:14:55 GMT

I don't think anyone is being snarky or relishing in the numbers. We post endlessly on these forums on what *we* think would help sales and they don't seem to care. I think listening to your customers would be the number one thing a company would do to boost sales!!

For me it's the horrendous shipping and costly returns, the overpriced clothing, the ridiculous shows with two and three hosts and the LACK of products on air. When I look at the "items on air" it's a joke compared to what they have online. I will never understand why they beat 10-15 items into the ground every day/week and never show anything "fresh and new".

I want them to succeed, I really do, but that will be hard when they don't care about what their customers think or want. Just my two cents.

Re: QVC Earnings for 3Q released....

QVCkitty1 — Fri, 04 Nov 2022 14:31:32 GMT

I don't really care for myself, but I know that others would miss the tv presentations . I would miss the website, but really there is nothing I can do about it. It is interesting information.

Re: QVC Earnings for 3Q released....

MG Chris — Fri, 04 Nov 2022 14:48:07 GMT

@Beguile wrote:
I don't think anyone is being snarky or relishing in the numbers. We post endlessly on these forums on what *we* think would help sales and they don't seem to care. I think listening to your customers would be the number one thing a company would do to boost sales!!

For me it's the horrendous shipping and costly returns, the overpriced clothing, the ridiculous shows with two and three hosts and the LACK of products on air. When I look at the "items on air" it's a joke compared to what they have online. I will never understand why they beat 10-15 items into the ground every day/week and never show anything "fresh and new".

I want them to succeed, I really do, but that will be hard when they don't care about what their customers think or want. Just my two cents.

Bingo...the same complaints come up here time and time again. The same tired merchandise, juvenile behavior on the part of hosts, the list goes on and on.

There are many brands on the website that see very little, if any, airtime. I am talking about quality products. They need to shake it up and update their website and software. Offer some good sales, HSN has been selling clearance items at good prices, their systems always work and their customer service has never let me down and I have been buying.

I can't remember the last time I purchased from here, and I used to buy a lot. The recent ex pay fiasco soured me, and the lack of uniqueness has made me close my wallet. Even my old pal Val has not offered anything new and different enough to make me buy. ShopHQ has been getting my $ lately as well because they offer nice things, and I never have an issue.

Re: QVC Earnings for 3Q released....

Caaareful Shopper — Fri, 04 Nov 2022 14:50:45 GMT

@Bhvbum wrote:
What period of time are these numbers being compared to? We are leaving a period where people were at home, and spending lots. Of course that's going to come down now that people are back to work.

Also, with interest rates going up, buying is beginning to slow and that is the whole point of trying to curb inflation.
This is not just affecting QVC but retail across the board.

@Bhvbum Quarterly reports are compared to the previous year's quarter at the same time.

Therefore, these Qtr 3 2022 results compare financial information for the three months ended September 30, 2022 to the three months endedSeptember 30, 2021.