Qurate Retail(US:QRTEA)2024-02-27 16:00Revenue Performance - Qurate Retail's revenue decreased by 4% in Q4 2023 and 5% for the full year, totaling $3,143 million in Q4 and $10,915 million for the year[3][10] - QxH revenue declined by 4% in Q4 and 5% for the full year, with a 5% decrease in units shipped in Q4[16] - QVC International revenue increased by 2% in Q4 but decreased by 3% for the full year, with constant currency revenue flat in Q4[3][21] - Cornerstone revenue decreased by 12% in Q4 and 11% for the full year, reflecting competitive pressure in the home sector[3][23] - Total revenue for 2023 decreased to $10,915 million, down 9.8% from $12,106 million in 2022[66] Earnings and Profitability - The company reported a diluted EPS of $(0.70) in Q4 and $(0.37) for the full year, with an adjusted diluted EPS of $0.22 in Q4 and $0.24 for the year[3][14] - Adjusted OIBDA increased by 46% in Q4 2023, reaching $340 million, while it decreased by 3% for the full year[3][10] - Operating income improved to $590 million in 2023, compared to a loss of $2,041 million in 2022[66] - The company's operating income for Q4 2023 was a loss of $103 million, compared to a profit of $151 million in Q3 2023[54] - Adjusted net income for Q4 2023 was $40 million, a significant recovery from a loss of $18 million in Q4 2022[58] - The diluted earnings per share for Q4 2023 was $0.10, compared to a loss of $0.13 in Q4 2022[58] Debt and Financial Position - The company reduced its principal amount of debt by $956 million in 2023[3] - Total debt for Qurate Retail, Inc. decreased by $215 million in the fourth quarter of 2023, reaching $5,939 million[37] - QVC's leverage ratio improved to 2.4x at the end of 2023, down from 2.6x in the previous quarter[39] - Total liabilities reduced to $10,879 million in 2023, a decrease of 9.4% from $12,046 million in 2022[64] Cash Flow and Assets - Cash and cash equivalents increased by $22 million in the fourth quarter of 2023, totaling $1,121 million[38] - Cash and cash equivalents at the end of the period were $1,136 million, down from $1,285 million at the beginning of the period[68] - Net cash provided by operating activities increased to $919 million in 2023, compared to $194 million in 2022[68] - Total current assets decreased to $3,682 million in 2023, down 13.9% from $4,275 million in 2022[64] Operational Metrics - Operating income margin for QxH improved to 3.9% in 2023 from (24.7)% in 2022, reflecting a significant recovery[30] - Adjusted OIBDA margin for QxH increased to 10.7% in 2023, up 50 basis points from 10.2% in 2022[30] - eCommerce revenue for QxH decreased by 3% to $4,321 million in 2023, while eCommerce as a percentage of total revenue rose to 61.8%[30] - Average selling price for QxH increased by 3% to $53.33 in 2023[30] - Cornerstone's eCommerce revenue declined by 9% to $902 million in 2023, while its eCommerce percentage of total revenue rose to 77.4%[30] Impairment and Divestitures - QxH incurred a $326 million non-cash impairment charge related to goodwill in the fourth quarter of 2023[27] - The company experienced a non-cash impairment charge of $326 million related to goodwill in Q4 2023[54] - The company reported a loss on disposition of Zulily amounting to $64 million in 2023[66] - Qurate Retail divested Zulily on May 24, 2023, impacting revenue figures[7][12] - The company divested Zulily on May 24, 2023, impacting its financial metrics for the year[54] Future Outlook - The company expects to continue its momentum into 2024, aiming for improved results[2] - The company plans to focus on restructuring and cost management strategies to improve future performance[54] - The company plans to focus on restructuring and improving operational efficiency in the upcoming year[66]