Qurate Retail, Inc ( (QRTEB) ) has released its Q3 earnings. Here is a breakdown of the information Qurate Retail, Inc presented to its investors.
Qurate Retail, Inc. is a retail company that specializes in video commerce through broadcast, digital, and streaming platforms, operating across various sectors including home shopping and e-commerce. In its third quarter of 2024, Qurate Retail faced significant challenges due to macroeconomic factors affecting consumer behavior, leading to a 5% decline in revenue compared to the previous year. Despite the revenue setback, the company maintained its gross margin and reduced operating expenses through disciplined cost management.
Key financial metrics from the third quarter reveal that Qurate Retail’s revenue dropped by 5% in both US Dollars and constant currency. The company’s operating income slightly increased to $152 million, while Adjusted OIBDA decreased by 12% to $250 million. A notable strategic accomplishment was the tendering of 89% of QVC’s 2027 and 2028 notes, which helped improve the credit profile by reducing debt and extending the maturity profile.
QxH experienced a 6% revenue decline, attributed to a decrease in units shipped and lower shipping revenue. Meanwhile, QVC International saw a 1% decrease in revenue, influenced by a drop in average selling prices despite a slight increase in units shipped. Cornerstone faced a 12% revenue decline, primarily due to competitive pressures in the home sector.
Looking ahead, Qurate Retail is transitioning to a new phase of strategic growth, focusing on expanding its presence on social and streaming platforms. The management remains committed to improving profitability and enhancing its business model to adapt to changing consumer behaviors.
