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Respected Contributor
Posts: 3,086
Registered: ‎03-13-2010

QVC Earnings for 3Q released....

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...

Honored Contributor
Posts: 11,458
Registered: ‎03-09-2010

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

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.

 

Honored Contributor
Posts: 12,698
Registered: ‎03-11-2010

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

Are ny earnings up? OK maybe big oil.

I ain't fraid of no ghosts.
Respected Contributor
Posts: 2,111
Registered: ‎09-07-2014

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

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. 

Honored Contributor
Posts: 8,355
Registered: ‎03-20-2010

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

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!!

 

Respected Contributor
Posts: 2,986
Registered: ‎07-18-2010

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

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. 

Respected Contributor
Posts: 2,111
Registered: ‎09-07-2014

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

@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!!

Esteemed Contributor
Posts: 6,189
Registered: ‎09-08-2010

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

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

Respected Contributor
Posts: 4,306
Registered: ‎03-11-2010

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

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.

Esteemed Contributor
Posts: 5,892
Registered: ‎03-11-2010

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

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.