Qurate Retail(QRTEB) - 2025 Q3 - Quarterly Results

Revenue Performance - QVC Group's revenue decreased by 6% in both US Dollars and constant currency, totaling $2,213 million in Q3 2025 compared to $2,344 million in Q3 2024[4] - QVC Group reported total revenue of $2,213 million for the three months ended September 30, 2025, a decrease of 5.6% compared to $2,344 million for the same period in 2024[45] - QxH revenue declined by 7% to $1,416 million, driven by a 7% decrease in units shipped[4][6] - QVC International revenue decreased by 1% in US Dollars and 5% in constant currency, totaling $566 million[4] - Cornerstone revenue decreased by 8% to $231 million, reflecting lower units shipped in home and apparel categories[4][10] Operating Income and Profitability - Operating income fell by 61% to $60 million, down from $152 million in the same quarter last year[4] - The operating income for QVC Group was $60 million in Q3 2025, down from $152 million in Q3 2024, reflecting a decline of 60.5%[45] - Adjusted OIBDA decreased by 32% to $169 million, compared to $250 million in Q3 2024[4] - Adjusted OIBDA for QVC Group was $169 million in Q3 2025, compared to $250 million in Q3 2024, representing a decrease of 32.4%[34] - QVC Group's Adjusted OIBDA margin for Q3 2025 was approximately 7.6%, down from 10.7% in Q3 2024[34] - The net loss attributable to QVC Group, Inc. shareholders was $80 million for Q3 2025, compared to a net loss of $23 million in Q3 2024[45] Cash and Debt Management - Cash and cash equivalents increased by $920 million to $1,817 million due to net borrowings and cash from operations[20] - Cash and cash equivalents increased to $1,817 million as of September 30, 2025, up from $905 million at the end of 2024[44] - Total current assets rose to $4,053 million as of September 30, 2025, compared to $3,299 million at the end of 2024, indicating a growth of 22.9%[44] - Total QVC Group debt rose by $975 million to $6,615 million, primarily due to additional borrowing under the bank credit facility[20] - Long-term debt increased to $5,811 million as of September 30, 2025, compared to $4,101 million at the end of 2024, reflecting a rise of 41.6%[44] - QVC's leverage ratio increased to 4.2x as of September 30, 2025, compared to 3.9x in the previous quarter[21] Inventory and Impairment - The company experienced a decrease in inventory levels, with a reduction of $105 million in Q3 2025 compared to the same period in 2024[48] - The company recorded a non-cash impairment charge of $2.4 billion related to goodwill and tradenames in Q2 2025[36] Return Rate - The return rate for QxH was 14.5%, a slight decrease from 14.6% in Q3 2024[12]