Customer Engagement and Sales - For the year ended December 31, 2024, approximately 96% of QVC's worldwide shipped sales were from repeat and reactivated customers, attracting about 2.5 million new customers[29] - Approximately 91% of QVC's shipped sales for the twelve months ended December 31, 2024, came from repeat customers, who spent an average of $1,460 each during this period[52] - Total consolidated customers were approximately 11.6 million, including 7.6 million QxH customers and 4.0 million QVC International customers[53] - Approximately 89% of new QxH customers made their first purchase through QxH's Digital Platforms in 2024[38] Revenue and Financial Performance - QVC's global e-commerce operation comprised $5.5 billion, or 60.9%, of consolidated net revenue for the year ended December 31, 2024[29] - QxH, including its Digital Platforms, contributed $6.6 billion, or 73%, of consolidated net revenue and $765 million of Adjusted OIBDA for the year ended December 31, 2024[38] - QVC International operations generated $2.4 billion, or 27%, of consolidated QVC net revenue and $333 million of Adjusted OIBDA for the year ended December 31, 2024[39] - QVC's business is seasonal, with the fourth quarter accounting for approximately 30% of its global revenue, while the first three quarters each account for 22% to 24%[68] Digital and Mobile Operations - QVC's Digital Platform revenue as a percentage of total QxH net revenue was 63.9%, 61.8%, and 60.5% for the years ended December 31, 2024, 2023, and 2022, respectively[38] - QxH customers placed approximately 45.7% of all orders via mobile devices in 2024, while QVC International customers placed 41.1% of orders through mobile[55] - Digital Platform revenue accounted for 52.4% of total QVC International net revenue in 2024, up from 49.6% in 2023 and 47.5% in 2022[39] Workforce and Restructuring - QVC's workforce consisted of approximately 17,000 employees who handled about 79 million customer calls and shipped approximately 198 million units globally in 2024[30] - QVC recorded restructuring charges of $18 million in 2024 related to its shift to a managed services model for information technology services[33] - The company implemented a workforce reduction and recorded restructuring charges of $13 million in 2023 and $24 million in 2022[32] - As of December 31, 2024, the company had approximately 18,900 full and part-time employees, with employment levels fluctuating due to seasonal factors[96] Strategic Initiatives - QVC announced a transition to the WIN strategy on November 14, 2024, focusing on enhancing customer interactions and leveraging technology[34] - The WIN strategy aims for top-line growth through enhancing customer interactions, fostering engaging content experiences, and leveraging technology[34] - QVC's Project Athens initiated actions to reduce inventory and included a workforce reduction, with restructuring charges of $13 million recorded in 2023[32] Compliance and Regulatory Environment - The company is subject to program access rules due to its attributable interests in satellite programming services, which may affect its operations and compliance costs[77] - The company’s subsidiary QVC is also subjected to program carriage rules, limiting its ability to favor affiliated programmers over unaffiliated ones[78] - The 1992 Cable Act mandates that cable systems must reserve a percentage of channels for unaffiliated third parties, potentially impacting QVC's channel availability[80] - The company faces increased regulatory scrutiny regarding online privacy and data protection, particularly under the GDPR and CCPA[85][89] Cost Structure and Operations - QVC's cost structure is highly variable, allowing it to achieve attractive margins compared to traditional brick-and-mortar retailers[59] - QVC has negotiated long-term contracts with shipping companies, which provide favorable shipping rates in various markets[60] - QVC maintains long-term affiliation agreements with distributors, with most agreements expiring between 2025 and 2029[48] Corporate Governance and Employee Engagement - The company emphasizes fostering an inclusive culture to enhance customer experiences and innovate for growth, leveraging diverse backgrounds and perspectives[97] - Annual employee engagement surveys are conducted to improve employee experience and retention, influencing company programs and practices[99] - The company maintains a commitment to health and safety, implementing comprehensive occupational injury and illness prevention programs[100] Miscellaneous - CBI operates multiple brand websites, enhancing customer experience with additional content and product assortments[72] - CBI brands focus on innovative proprietary and branded products, often securing exclusive distribution rights[73] - The company’s website provides access to SEC filings, including Form 10-Ks, Form 10-Qs, and Form 8-Ks, generally available within 24 hours of filing[101] - Corporate governance guidelines and ethics documents are available on the company’s website, with copies provided free of charge upon request[102]
Qurate Retail(QRTEB) - 2024 Q4 - Annual Report