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QVC Group (QVCGA)
NASDAQ:QVCGA
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QVC Group (QVCGA) AI Stock Analysis

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QVCGA

QVC Group

(NASDAQ:QVCGA)

Rating:47Neutral
Price Target:
$6.00
▼(-33.92% Downside)
QVC Group's overall stock score is primarily impacted by its poor financial performance, characterized by declining revenues, negative profit margins, and cash flow challenges. While there are positive developments in technical analysis and corporate leadership, these are overshadowed by the company's financial instability and valuation concerns.

QVC Group (QVCGA) vs. SPDR S&P 500 ETF (SPY)

QVC Group Business Overview & Revenue Model

Company DescriptionQVC Group Inc. is a media and e-commerce company that owns and operates a portfolio of retail brands, including QVC, HSN, and Zulily. The company specializes in video commerce, leveraging television, digital streaming, and online platforms to engage consumers and drive sales. QVC Group Inc. focuses on interactive shopping experiences, offering a wide range of products across fashion, home, electronics, and beauty categories.
How the Company Makes MoneyQVC Group generates revenue primarily through the sale of merchandise across its various retail platforms. The company employs a direct-to-consumer model, where it showcases products through live television broadcasts, online streaming, and digital marketplaces, allowing customers to purchase items in real-time. Key revenue streams include product sales, shipping and handling fees, and ancillary services such as product warranties. Additionally, QVC often partners with vendors and brands, which may involve revenue-sharing agreements that enhance its product offerings and expand its customer base. The company also benefits from customer loyalty programs that encourage repeat purchases, contributing to sustained revenue growth.

QVC Group Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 31, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with noteworthy achievements in cost reduction and growth in social and streaming platforms, counterbalanced by significant declines in traditional revenue streams and customer base. While strategic measures are being implemented to address current challenges, the financial results reflect ongoing pressure from macroeconomic factors.
Q2-2025 Updates
Positive Updates
Transition of HSN Operations to Studio Park
HSN's operations were successfully transitioned to Studio Park in Westchester, Pennsylvania, consolidating 5 U.S. TV channels under one roof, generating cost reductions and advancing the WIN growth strategy.
Growth in Social and Streaming Channels
Social and streaming revenue experienced over 30% growth compared to Q2 2024, with significant engagement from platforms like TikTok and the launch of an ad-supported version of QVC2 on several leading SaaS platforms.
Increased Customer Engagement Through TikTok Shop
Over 100,000 new customers were acquired through TikTok shop, contributing to an increased engagement in social platforms and partially offsetting declines in traditional customer bases.
Reduction in Net Debt
QVC Group reduced net debt by over $1.5 billion since the end of 2021, creating more flexibility for business transformation.
Negative Updates
Decline in Total Revenue
Total revenue declined by 9% in constant currency for Q2, with QxH revenue down 11% and QVC International down 3%.
Reduced Customer Base
Total QxH customer count declined by 12% in the quarter driven by decreases in existing, new, and reactivated customers.
Challenges in the Home and Apparel Categories
Home revenue decreased 12% and apparel revenue decreased 9%, reflecting reduced demand and pressure in key categories.
Noncash Impairment Charge
A $2.4 billion noncash impairment charge related to goodwill and trade names impacted financial results, contributing to operating loss.
Company Guidance
During QVC Group's Second Quarter 2025 earnings call, the company provided several metrics to illustrate its current performance and strategic initiatives. Total revenue declined 9% in constant currency, with QxH's revenue dropping by 11% and QVC International's by 3%. Despite these declines, the company reported a 30% growth in social and streaming revenue compared to Q2 2024, with over 100,000 new customers engaging via TikTok Shop. The streaming monthly active users grew over 80% to nearly 1.5 million, and streaming minutes watched increased by 25%. Customer spending remained stable, with an average of $1,622 spent per customer, while the best customers, purchasing 20 or more items annually, spent an average of $3,990. The company aims to diversify sourcing to ensure no single country represents more than one-third of its U.S. goods by the end of 2025. Adjusted OIBDA declined 19% in constant currency, an improvement from a 31% decline in Q1. Additionally, QVC Group has reduced its net debt by over $1.5 billion since 2021, and its leverage ratio stands at 3.9x, below the 4.5x covenant threshold. The company also highlighted a strategic focus on cost-cutting, capital structure strengthening, and maintaining customer engagement through innovative marketing campaigns.

QVC Group Financial Statement Overview

Summary
QVC Group is facing significant financial challenges, with declining revenue and profitability, high leverage, and negative equity. While operating cash flow remains positive, the company must address its declining revenue and high debt levels to stabilize its financial position and improve future prospects.
Income Statement
45
Neutral
The income statement reflects a challenging period for QVC Group, with declining revenues and negative profitability metrics. Gross profit margin is moderate at 34.7% TTM, but significant net losses have resulted in a net profit margin of -14.2% TTM. The revenue growth rate shows a downward trend, with a decrease of 2.4% TTM compared to the previous year. Both EBIT and EBITDA margins are negative, indicating operational struggles.
Balance Sheet
30
Negative
The balance sheet reveals financial instability, with a negative stockholders' equity of -10.9% TTM and a high debt-to-equity ratio due to the negative equity. The equity ratio is concerning at -10.9% TTM, indicating liabilities exceed assets, posing a risk to financial stability.
Cash Flow
50
Neutral
Cash flow analysis shows some resilience with positive operating cash flow of $439 million TTM and free cash flow of $168 million TTM. However, free cash flow has decreased by 41.9% from the previous year, indicating potential cash flow challenges. The operating cash flow to net income ratio is not meaningful due to negative net income.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue9.63B10.04B10.91B12.11B14.04B14.18B
Gross Profit3.07B3.51B3.69B3.69B4.81B4.89B
EBITDA-3.03B-440.00M924.00M-1.37B1.64B2.02B
Net Income-3.63B-1.29B-145.00M-2.59B340.00M1.20B
Balance Sheet
Total Assets6.70B9.24B11.37B12.57B16.20B17.00B
Cash, Cash Equivalents and Short-Term Investments927.00M905.00M1.12B1.27B587.00M806.00M
Total Debt6.78B5.57B5.96B6.87B7.29B6.94B
Total Liabilities9.59B10.13B10.88B12.05B13.22B13.27B
Stockholders Equity-2.98B-971.00M385.00M412.00M2.85B3.60B
Cash Flow
Free Cash Flow14.00M289.00M576.00M-119.00M794.00M2.14B
Operating Cash Flow258.00M525.00M919.00M194.00M1.23B2.46B
Investing Cash Flow-294.00M-225.00M-54.00M601.00M-501.00M-161.00M
Financing Cash Flow-295.00M-498.00M-1.01B-72.00M-914.00M-2.18B

QVC Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price9.08
Price Trends
50DMA
4.22
Positive
100DMA
4.86
Positive
200DMA
10.48
Negative
Market Momentum
MACD
1.45
Negative
RSI
67.25
Neutral
STOCH
66.93
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QVCGA, the sentiment is Positive. The current price of 9.08 is above the 20-day moving average (MA) of 5.81, above the 50-day MA of 4.22, and below the 200-day MA of 10.48, indicating a neutral trend. The MACD of 1.45 indicates Negative momentum. The RSI at 67.25 is Neutral, neither overbought nor oversold. The STOCH value of 66.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for QVCGA.

QVC Group Risk Analysis

QVC Group disclosed 38 risk factors in its most recent earnings report. QVC Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 2 New Risks
1.
Any further impairment of our goodwill or other intangible assets could have a material adverse effect on our business, results of operations and financial condition. Q3, 2022
2.
We have identified a material weakness in our internal control over financial reporting, that, if not properly remediated, could adversely affect our business and results of operations. Q3, 2022

QVC Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$1.70B37.8810.36%10.68%37.84%
63
Neutral
$1.43B-58.93%-10.39%14.92%
61
Neutral
$17.99B12.87-3.56%2.97%1.27%-14.28%
57
Neutral
$10.74B17.86%0.87%54.67%
57
Neutral
$5.36B43.23-39.97%2.38%-38.88%
47
Neutral
$76.93M
-7.15%-1299.84%
44
Neutral
$324.17M-54.45%-7.96%-3078.36%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
QVCGA
QVC Group
9.08
-15.96
-63.74%
FLWS
1-800 Flowers
5.10
-2.16
-29.75%
W
Wayfair
89.61
46.43
107.53%
ETSY
Etsy
54.06
1.71
3.27%
RVLV
Revolve Group
23.84
2.38
11.09%
TDUP
thredUP
11.60
10.89
1533.80%

QVC Group Corporate Events

Executive/Board Changes
QVC Group Revises Executive Compensation Structure
Neutral
Aug 15, 2025

QVC Group, Inc. has revised its compensation structure for senior executives and other eligible employees to enhance motivation and retention. The new structure includes guaranteed compensation through 2026, with specific performance conditions for senior executives, aiming to align their incentives with the company’s operational goals.

Financial Disclosures
QVC Group Schedules Conference Call for Q2 Results
Neutral
Jul 10, 2025

On July 7, 2025, QVC Group, Inc. announced it will hold a conference call on August 7, 2025, to discuss its second-quarter results. The call will address the company’s financial performance and outlook, potentially impacting its operations and stakeholder interests.

Executive/Board ChangesBusiness Operations and Strategy
QVC Group Board Resignation and New Appointments
Neutral
Jun 20, 2025

On June 19, 2025, Larry E. Romrell resigned from the board of directors of QVC Group, Inc., effective June 20, 2025. His departure was amicable, and the company expressed gratitude for his service. Following his resignation, the board expanded from seven to eight members, appointing Roger Meltzer and Carol Flaton as independent directors. They will serve on a special committee to evaluate strategic and financial alternatives, with Mr. Meltzer and Ms. Flaton receiving $50,000 monthly compensation.

Delistings and Listing ChangesStock SplitRegulatory Filings and Compliance
QVC Group Regains Nasdaq Compliance After Reverse Split
Neutral
Jun 9, 2025

QVC Group, Inc. received a notice from Nasdaq regarding non-compliance with the minimum bid price requirement for its Series A common stock. To address this, the company executed a reverse stock split at a 1-for-50 ratio on May 22, 2025. Consequently, by June 9, 2025, QVC regained compliance as the stock price remained above $1.00 for ten consecutive business days.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 28, 2025