Financial Performance - Qurate Retail recognized a loss of $64 million from the divestiture of Zulily in Q2 2023, with Zulily contributing $109 million and $301 million to revenue for the three and six months ended June 30, 2023, respectively [92]. - Consolidated Qurate Retail revenue decreased by 9.1% or $242 million for the three months ended June 30, 2024, and by 10.3% or $544 million for the six months ended June 30, 2024, compared to the prior year [107]. - Operating income decreased by $201 million for the three months and $232 million for the six months ended June 30, 2024, compared to the corresponding periods in the prior year [110]. - Net earnings for Q2 2024 were $32 million, down from $119 million in Q2 2023, reflecting a decrease of approximately 73.5% [119]. - Qurate Retail's consolidated net revenue decreased by 4.0% for Q2 2024 compared to Q2 2023, with total revenue of $2,134 million versus $2,224 million [134]. - Operating income for Q2 2024 was $163 million, a decline of 56.4% from $374 million in Q2 2023 [134]. - Cash generated from operating activities for the six months ended June 30, 2024, was $293 million, down from $468 million in the same period of 2023 [125]. - CBI's consolidated net revenue decreased by 13.6% for the three months ended June 30, 2024, attributed to an 8% decrease in ASP and a 5% decrease in units shipped [146]. Restructuring and Operational Changes - QVC recorded restructuring charges of $13 million and $18 million during the six months ended June 30, 2023, related to workforce reductions and IT service model shifts [97]. - QVC recorded restructuring costs of $18 million for the three and six months ended June 30, 2024, related to the shift in its information technology operating model [143]. - QVC's stock-based compensation expense decreased to $2 million for the three months ended June 30, 2024, down from $11 million in 2023, primarily due to changes in the market price of Qurate Retail's Series A common stock [144]. Strategic Initiatives - Qurate Retail's Project Athens aims to improve customer experience, optimize processes, lower costs, and build new high-growth businesses, with a focus on enhancing video streaming commerce [93][96]. - The company is investing in infrastructure to improve order delivery experiences and enhance customer loyalty through personalized services [94]. - Qurate Retail's divestiture of Zulily did not represent a strategic shift affecting its operations and financial results, as it continues to explore untapped opportunities to maximize brand value [92][96]. Economic and Market Conditions - Qurate Retail's future net revenue will depend on its ability to grow through digital platforms and retain existing customers amid economic uncertainties affecting discretionary spending [98][99]. - The company experienced inflationary pressures, including higher wages and merchandise costs, which may impact pricing power in the near term [100]. - Qurate Retail's ability to maintain favorable channel positioning may be challenged by changes in television viewing habits and governmental actions [98]. Cash Flow and Capital Management - Cash and cash equivalents as of June 30, 2024, totaled $1,210 million, with QVC holding $315 million, CBI $116 million, and Corporate $779 million [123]. - Qurate Retail's projected capital improvement spending for the remainder of 2024 is estimated between $100 million and $120 million [126]. - The consolidated leverage ratio for QVC was greater than 3.5 to 1.0 as of June 30, 2024, restricting dividend payments under senior secured notes [122]. - The company expects to generate positive cash flow from operations during 2024 [124]. International Operations - QVC's international operations generated $576 million in revenue for Q2 2024, down from $606 million in Q2 2023, a decrease of 4.9% [134]. - QVC International's net revenue was flat in constant currency for the three months ended June 30, 2024, with a 3.7% increase in units shipped, offset by a 2.6% decrease in ASP [139]. - For the six months ended June 30, 2024, QVC International's net revenue decline in constant currency was primarily due to a 3.6% decrease in ASP, despite a 3.8% increase in units shipped [139]. Cost Management - QVC's cost of goods sold as a percentage of net revenue decreased to 64.4% for the three months ended June 30, 2024, down from 65.5% in 2023, driven by product margin favorability and lower freight costs [140]. - Operating expenses as a percentage of net revenue decreased to 7.8% for the three months ended June 30, 2024, compared to 8.0% in 2023, primarily due to lower commissions expense [141]. - CBI's cost of goods sold as a percentage of net revenue improved to 57.9% for the three months ended June 30, 2024, down from 61.1% in 2023, due to lower supply chain costs [147]. - CBI's SG&A expenses (excluding stock-based compensation) increased from 27.2% to 31.1% as a percentage of net revenue for the three months ended June 30, 2024, primarily due to lower revenue [148]. Shareholder Returns - The company's board of directors authorized a share repurchase program totaling $500 million for both QRTEA and QRTEB in May 2019 and again in August 2021 [156]. - No shares of QRTEA or QRTEB were repurchased during the three months ended June 30, 2024 [156]. - During the same period, no shares were surrendered by officers and employees to cover withholding taxes related to restricted stock and options [156].

"Me" by Jennie Garth brings a seamless fusion of fashion and timeless comfort to QVC "Me" by Jennie Garth will feature thoughtfully curated drops inspired by different locations and cities, and the tones, textures, and feelings they evoke. The first launch collection is inspired by the colors and textures of the California Central Coast. All the denim pieces in the collection, including jeans, jackets, jumpsuits and skirts, are made with a recycled "REPREVE Our Ocean" fabrication, polyester viscose that is ...

Company Leadership Update - Qurate Retail Group appoints Mara Sirhal as Chief Merchandising Officer for QVC US, effective immediately [1][6] - Sirhal brings over 20 years of experience in merchandising, product development, and brand leadership, with prior roles at Saks Off 5th, Bed, Bath & Beyond, and Macy's [2] - She will report to Mike Fitzharris, President of QVC US, and replaces Stacy Bowe, who moved to lead Qurate Retail's HSN business unit earlier this year [1] Strategic Responsibilities - Sirhal will lead QVC's merchandising strategy across key categories including home, fashion, beauty, electronics, and jewelry [4] - She will oversee QVC's Buying, Planning & Programming organization and lead the Design Development & Global Sourcing (DDGS) team, which focuses on creating new brands and products in apparel, accessories, outerwear, and home décor [4] - Her role aligns with QVC's Age of Possibility campaign, targeting women consumers aged 50+ [4] Industry Context - Qurate Retail Group is a Fortune 500 company and a leader in video commerce (vCommerce), reaching over 200 million homes globally through 15 TV channels and digital platforms [3][8] - The company operates six retail brands: QVC, HSN, Ballard Designs, Frontgate, Garnet Hill, and Grandin Road, combining shopping and entertainment for millions of customers [8] - Qurate Retail Group's vCommerce strategy spans linear TV, ecommerce sites, digital streaming, and social platforms, with a strong presence in the US, UK, Germany, Japan, Italy, Poland, and China [8]

WEST CHESTER, Pa., July 12, 2024 /PRNewswire/ -- QVC®, world leader in live shoppable entertainment announced today it has launched Cay Skin. The suncare line, which premieres on-air and on QVC.com on July 12, aims to keep skin glowing and protected throughout the year. "Our beauty customers are women, over the age of 50, who value the importance of suncare and skincare. They want protective, skin nourishing products that are easy to incorporate into their daily skin routines," said Anna Baker, Vice Preside ...

Revenue Performance - Qurate Retail reported a 4% decrease in total revenue for Q1 2024, amounting to $2,342 million, compared to $2,644 million in Q1 2023[4] - QxH revenue declined by 4% to $1,539 million, while QVC International revenue decreased by 3% to $572 million[7] - Total revenue for Q1 2024 was $2,342 million, down 11.42% from $2,644 million in Q1 2023[54] Profitability Metrics - Adjusted OIBDA increased by 25% in constant currency, reaching $259 million, up from $210 million in the same period last year[4] - The company achieved a diluted EPS of $0.00, with an adjusted diluted EPS of $0.04, compared to an adjusted EPS of $(0.05) in Q1 2023[10] - Qurate Retail's Adjusted OIBDA for Q1 2024 was $259 million, compared to $340 million in Q4 2023[41] - QVC's Adjusted OIBDA for Q1 2024 was $260 million, down from $320 million in Q4 2023[48] - Operating income for Q1 2024 was $145 million, down from $176 million in Q1 2023, representing a 17.61% decrease[54] - The company recognized a $326 million non-cash impairment charge related to goodwill in Q4 2023[44] - Qurate Retail reported a net income of $8 million for Q1 2024, a decrease from $33 million in Q1 2023, reflecting a 75.76% decline[54] - Adjusted net income for Q1 2024 was $17 million, compared to a loss of $20 million in Q1 2023[54] Debt and Financial Position - The company successfully repaid $423 million of QVC's 4.85% senior secured notes due April 2024[3] - Total debt for Qurate Retail increased by $14 million to $5,953 million, with cash and cash equivalents decreasing by $19 million to $1,102 million[26] - As of March 31, 2024, QVC's bank credit facility has $1.3 billion drawn with incremental availability of $1.9 billion, net of letters of credit[27] - QVC's leverage ratio was 2.5x at quarter-end, slightly increasing from December 31, 2023, due to certain add backs no longer impacting the calculation[27] - Qurate Retail's consolidated leverage ratio was greater than 3.5x, restricting its ability to make unlimited dividends or other restricted payments[28] - Qurate Retail is in compliance with all debt covenants as of March 31, 2024[29] Asset and Liability Management - The company’s total current assets decreased to $3,386 million in Q1 2024 from $3,682 million in Q4 2023, a decline of 8.04%[53] - Current liabilities decreased to $2,543 million in Q1 2024 from $2,617 million in Q4 2023, a reduction of 2.82%[53] - Total liabilities decreased to $10,630 million in Q1 2024 from $10,879 million in Q4 2023, a decline of 2.29%[53] - Cash and cash equivalents at the end of Q1 2024 were $1,117 million, down from $1,295 million at the end of Q1 2023, a decrease of 13.78%[55] Strategic Initiatives - The company launched the "Age of Possibility" campaign in April 2024, featuring prominent ambassadors to engage its core customer base[3] - Qurate Retail is focused on sustainable future growth through cost reduction and improved product margins, with ongoing transformation initiatives[2] Interest Expenses - The company incurred interest expenses of $117 million in Q1 2024, an increase from $94 million in Q1 2023, reflecting a 24.47% rise[54] Currency Impact - The company uses constant currency financial metrics to assess performance excluding foreign currency fluctuations, particularly for its subsidiaries in the UK, Germany, Italy, and Japan[39]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-33982 QURATE RETAIL, INC. (Exact name of Registrant as specified in its charter) State of Delaware WASHINGTON, D. C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 (State or other juris ...

Financial Data and Key Metrics - Adjusted OIBDA grew 45% YoY, marking the third consecutive quarter of growth [31] - Free cash flow improved for the fifth consecutive quarter, with Q1 free cash flow at a use of $27 million compared to a use of $70 million last year [7][22] - Gross margin expanded by approximately 400 basis points, the fourth consecutive quarter of expansion [31] - QxH customer count declined 3% YoY, but new customer growth on a trailing twelve-month basis increased by 7% [11][12] - QVC International revenue declined 1%, with adjusted OIBDA increasing 10% and margin expanding 90 basis points [14][21] Business Line Performance - QxH revenue declined 4%, with growth in accessories (+5%) and jewelry (+4%) offset by declines in home (-7%) and apparel (-4%) [20][44] - Beauty revenue declined 3% at QVC but remained strong at HSN [9] - Cornerstone revenue declined 11%, but adjusted OIBDA grew 50% due to lower supply chain costs [46] - Streaming revenue, total minutes viewed, and monthly average users all grew in double digits in Q1 [37] Market Performance - QVC UK led international performance with high single-digit revenue growth, while Japan grew in low single digits and Germany declined mid-to-high single digits [21] - The UK saw strong demand across all categories, particularly in home, driving adjusted OIBDA improvement [14] - QVC International experienced growth in home but declines in jewelry and apparel [21] Strategy and Industry Competition - The company launched the "Age of Possibility" initiative targeting women over 50, a demographic with high discretionary income and control over 95% of household purchase decisions [40][41] - QVC is leveraging its Q50 ambassadors, who have a combined social following of 78 million, to drive engagement and sales [8][32] - The company is focusing on operational efficiencies, including supply chain cost reductions and improved inventory health, through initiatives like Project Athens [6][45] Management Commentary on Operating Environment and Outlook - Management noted that consumers are buying closer to the event and later in the season, impacting seasonal categories like gardening and outdoor decor [33][65] - The company remains optimistic about sustaining free cash flow improvement and addressing near-term debt maturities [48][75] - Management highlighted the stabilization of customer counts and the positive momentum in new customer acquisition [11][12] Other Key Information - The company redeemed $423 million of QVC 4.85% senior secured notes due in 2024, funded through the QVC revolver [47] - Total cash stood at $1.1 billion, with $311 million at QVC Inc, $464 million at Liberty Interactive LLC, and $248 million at Qurate Retail Inc [23] - The leverage ratio was 2.5x, with covenant OIBDA including adjusted OIBDA of QVC Inc and Cornerstone [23] Q&A Session Summary Question: Customer Spend and Retention - Existing customers, who make up 50% of the count and 90% of sales, spent an average of $1,600 in Q1, up 10% YoY [53] - New customers are coming in through digital channels, and their purchasing patterns are still being monitored [54] - The company is focusing on reactivating lost customers, particularly high-quality ones, through targeted outreach [56] Question: Streaming Growth and Customer Behavior - Streaming accounted for over 5% of total minutes viewed last year and is now in the high single digits, growing rapidly [60] - Streaming customers are typically multi-platform, and their spending behavior aligns with traditional linear TV viewers [81] Question: Project Athens and Freight Costs - Project Athens initiatives, including cost of goods sold improvements and fulfillment efficiencies, are expected to continue benefiting gross margins through 2025 [82] - Freight costs are managed effectively, with no significant changes expected in the near term [84][106] Question: Debt and Liquidity - The company expects to address 2025 debt maturities using cash and the revolver, similar to the 2024 notes [99] - The 2026 revolver size may be reduced as the business continues to perform well [118] Question: Inventory and Seasonal Trends - Inventory levels are well-managed, with a focus on new and higher-margin items [115][116] - Seasonal merchandise is in good shape, with no significant excess inventory concerns [99] Question: Japan Market Performance - Japan is a core business with consistent growth, and the company is not currently considering monetizing its stake [101][127] Question: Marketing Spend and Product Mix - Marketing spend is expected to remain stable, with potential reallocation but no material increases [104] - The company will continue to focus on higher-margin categories and avoid scaling into lower-margin products [123]

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Qurate Retail, Inc. (NASDAQ:QRTEA) Q4 2023 Earnings Conference Call February 28, 2024 8:30 AM ET Company Participants Shane Kleinstein - Senior Vice President, Investor Relations David Rawlinson - Chief Executive Officer Bill Wafford - Group Chief Financial Officer Greg Maffei - Executive Chairman Conference Call Participants Jason Bazinet - Citi William Reuter - Bank of America Carla Casella - JPMorgan Hale Holden - Barclays Karru Martinson - Jefferies Operator Ladies and gentlemen, welcome to the Qurate R ...

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