Qurate 2022 First Quarter Report Condensed

Foxxee · ‎10-03-2014

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%

BalletBabe · ‎03-05-2011

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

Johnnyeager · ‎09-05-2014

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.)

chrystaltree · ‎05-10-2010

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.

Johnnyeager · ‎09-05-2014

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.

Teddixat · ‎10-04-2010

@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.

Pecky · ‎03-10-2010

@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.

manny2 · ‎05-24-2010

@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.

Pecky · ‎03-10-2010

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.

Caaareful Shopper · ‎10-09-2012

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.