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Qvc Group, Inc. (A) (QVCGA)
:QVCGA
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QVC Group (QVCGA) AI Stock Analysis

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QVCGA

QVC Group

(NASDAQ:QVCGA)

Rating:42Neutral
Price Target:
$3.50
▲(10.41%Upside)
QVCGA's overall stock score reflects significant financial and operational challenges, with the most impactful factors being declining revenues, negative profitability, and high debt levels. While technical indicators and strategic initiatives provide some neutral and positive signals, the negative P/E ratio and recent earnings call underscore the company's struggles. Corporate events further highlight ongoing restructuring efforts.

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

QVC Group Business Overview & Revenue Model

Company DescriptionQVC Group (QVCGA) is a leading global video and e-commerce retailer, offering a wide range of products including home goods, beauty, fashion, electronics, and jewelry. The company operates in the retail sector, leveraging its extensive broadcast and online platforms to reach millions of customers worldwide. QVC is known for its engaging shopping experiences, combining entertainment with retail to create a unique customer engagement model.
How the Company Makes MoneyQVC Group makes money primarily through the sale of consumer products via its televised shopping channels and online platforms. The company's revenue model is centered around direct-to-consumer sales, where it showcases a curated selection of products through live broadcasts and digital streams, enticing customers to make purchases. Revenue streams include product sales, shipping and handling fees, and advertising partnerships. Significant factors contributing to its earnings include its expansive reach through cable and satellite TV, robust e-commerce infrastructure, and strategic partnerships with vendors and product manufacturers that allow for exclusive offerings and competitive pricing.

QVC Group Earnings Call Summary

Earnings Call Date:May 07, 2025
(Q1-2025)
|
% Change Since: -67.55%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Negative
The earnings call highlighted significant challenges faced by QVC, including a notable decline in revenue and customer count, coupled with sourcing challenges due to tariffs. Although there were positive developments in streaming and social platforms, the adverse effects of macroeconomic factors and the structural decline in linear TV viewership have significantly impacted the company's performance.
Q1-2025 Updates
Positive Updates
Growth in Streaming and Social Platforms
Combined minutes watched on social and streaming platforms increased by 26% year-over-year to 1.4 billion minutes. Streaming monthly active users grew by 131%, and March recorded the largest non-holiday revenue month ever.
Partnership with TikTok
QVC signed a strategic agreement with TikTok for a 24/7 live shopping experience in the U.S., which is now live on TikTok. QVC is also working with over 85,000 creators and has thousands of items listed on TikTok.
Positive Customer Engagement Metrics
Existing customers purchased on average $1,635 and 32 items over the past 12 months, while the best customers spent $3,975 on average, up 1% year-over-year.
Negative Updates
Significant Revenue Decline
Total revenue declined 10%, driven by accelerated declines in linear TV viewership and reduced consumer confidence. QVC International revenue declined 4% in constant currency, and Cornerstone was down 13%.
Decrease in Customer Count
Total customer count declined 10% in the quarter, with existing customers down 9%, new customers down 17%, and reactivated customers down 13%.
Impact of Tariffs and Sourcing Challenges
Given the current level of tariffs, QVC is working quickly to shift sourcing away from China, which still accounts for less than 50% of product COGS. The company is targeting no single country sourcing more than 1/3 of goods by year-end.
Adjusted OIBDA Decline
Consolidated adjusted OIBDA declined 31% in constant currency due to sales deleverage, with the adjusted OIBDA margin contracting by 310 basis points.
Company Guidance
In the QVC Group's 2025 Q1 earnings call, the company provided guidance amidst a challenging macroeconomic environment, highlighting several key metrics. Total revenue declined by 10%, driven by a sharp decrease in linear TV viewership and weakened consumer confidence, while QVC International revenue fell by 4% in constant currency. The company also faced a 31% decline in consolidated adjusted OIBDA. Total customer count decreased by 10%, with existing, new, and reactivated customers reducing by 9%, 17%, and 13%, respectively. Despite these challenges, QVC reported growth in social and streaming engagement, with streaming monthly active users increasing by 131% and combined minutes watched on these platforms rising by 26%. The company is pursuing a $100 million OIBDA opportunity by examining spending and has implemented a strategic agreement with TikTok for a 24/7 live shopping experience. Additionally, QVC's most loyal customers continued to show strong purchasing behavior, with those buying 20 or more items annually spending an average of $3,975 over the past year.

QVC Group Financial Statement Overview

Summary
QVC Group's financial performance is weak, with declining revenues and profitability. The negative net profit margin and high debt levels are concerning, although there is some resilience in positive operating cash flow.
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 Revenue9.80B10.04B10.91B12.11B14.04B14.18B
Gross Profit3.40B3.51B3.69B3.69B4.81B4.89B
EBITDA-576.00M-440.00M924.00M-1.37B1.64B2.02B
Net Income-1.39B-1.29B-145.00M-2.59B340.00M1.20B
Balance Sheet
Total Assets8.98B9.24B11.37B12.57B16.20B17.00B
Cash, Cash Equivalents and Short-Term Investments833.00M905.00M1.12B1.27B587.00M806.00M
Total Debt5.59B5.57B5.96B6.87B7.29B6.94B
Total Liabilities9.87B10.13B10.88B12.05B13.22B13.27B
Stockholders Equity-981.00M-971.00M385.00M412.00M2.85B3.60B
Cash Flow
Free Cash Flow168.00M289.00M576.00M-119.00M794.00M2.14B
Operating Cash Flow439.00M525.00M919.00M194.00M1.23B2.46B
Investing Cash Flow-272.00M-225.00M-54.00M601.00M-501.00M-161.00M
Financing Cash Flow-441.00M-498.00M-1.01B-72.00M-914.00M-2.18B

QVC Group Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price3.17
Price Trends
50DMA
3.53
Negative
100DMA
6.45
Negative
200DMA
13.84
Negative
Market Momentum
MACD
-0.14
Negative
RSI
49.82
Neutral
STOCH
22.93
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QVCGA, the sentiment is Neutral. The current price of 3.17 is above the 20-day moving average (MA) of 2.91, below the 50-day MA of 3.53, and below the 200-day MA of 13.84, indicating a neutral trend. The MACD of -0.14 indicates Negative momentum. The RSI at 49.82 is Neutral, neither overbought nor oversold. The STOCH value of 22.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$1.57B31.3311.97%9.09%106.50%
73
Outperform
$6.56B44.65-39.97%2.18%-32.87%
62
Neutral
$945.98M-69.51%-10.55%9.27%
57
Neutral
HK$26.40B4.14-2.03%5.51%-0.23%-68.02%
52
Neutral
$8.09B17.86%-0.89%46.62%
51
Neutral
$397.91M-42.08%-8.53%-2070.29%
42
Neutral
$31.11M
-7.66%-735.19%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
QVCGA
QVC Group
3.17
-32.66
-91.15%
FLWS
1-800 Flowers
6.26
-3.35
-34.86%
W
Wayfair
63.07
10.05
18.96%
ETSY
Etsy
63.98
1.71
2.75%
RVLV
Revolve Group
21.27
2.81
15.22%
TDUP
thredUP
8.00
5.91
282.78%

QVC Group Corporate Events

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.

The most recent analyst rating on (QVCGA) stock is a Hold with a $25.00 price target. To see the full list of analyst forecasts on QVC Group stock, see the QVCGA Stock Forecast page.

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.

The most recent analyst rating on (QVCGA) stock is a Hold with a $25.00 price target. To see the full list of analyst forecasts on QVC Group stock, see the QVCGA Stock Forecast page.

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.

The most recent analyst rating on (QVCGA) stock is a Hold with a $25.00 price target. To see the full list of analyst forecasts on QVC Group stock, see the QVCGA Stock Forecast page.

Executive/Board Changes
QVC Group Extends Gregory Maffei’s Executive Chairman Role
Positive
May 30, 2025

On May 27, 2025, QVC Group, Inc. announced a new employment agreement with Gregory B. Maffei, continuing his role as Executive Chairman. The agreement highlights Mr. Maffei’s significant institutional knowledge and his role in steering the company through economic challenges. The contract includes a base salary of $1 million, potential bonuses, and severance terms, reflecting the company’s commitment to retaining leadership expertise to drive future growth.

The most recent analyst rating on (QVCGA) stock is a Hold with a $25.00 price target. To see the full list of analyst forecasts on QVC Group stock, see the QVCGA Stock Forecast page.

DividendsBusiness Operations and Strategy
QVC Group Suspends Quarterly Dividend Amid Economic Pressures
Negative
May 23, 2025

On May 23, 2025, QVC Group, Inc. announced the suspension of its quarterly cash dividend of $2.00 per share for its 8.0% Series A Cumulative Redeemable Preferred Stock, starting with the dividend payable on June 16, 2025. This decision, influenced by macro-economic factors such as cord-cutting and tariff headwinds, aims to strengthen the company’s capital structure and enhance long-term value. The suspension will defer approximately $25 million in cash dividend payments per quarter, with the Board planning to periodically reevaluate this decision based on the company’s financial performance and operating environment.

The most recent analyst rating on (QVCGA) stock is a Hold with a $0.50 price target. To see the full list of analyst forecasts on QVC Group stock, see the QVCGA Stock Forecast page.

Stock SplitRegulatory Filings and Compliance
QVC Group Updates SEC Registration Amid Stock Split
Neutral
May 22, 2025

QVC Group has made amendments to its registration statements on Form S-8 with the SEC, which are related to the company’s undistributed shares of Common Stock. These changes are due to a Reverse Stock Split, which proportionately reduces the number of shares covered by the effective registration statements.

The most recent analyst rating on (QVCGA) stock is a Hold with a $0.50 price target. To see the full list of analyst forecasts on QVC Group stock, see the QVCGA Stock Forecast page.

Delistings and Listing ChangesExecutive/Board ChangesStock SplitBusiness Operations and Strategy
QVC Group Announces Reverse Stock Split and Delisting
Negative
May 16, 2025

On May 16, 2025, QVC Group announced a 1-for-50 reverse stock split of its Series A and Series B common stocks, intended to help QVCGA meet Nasdaq’s minimum bid price requirement. The reverse stock split will take effect on May 22, 2025, and QVCGB will be voluntarily delisted from Nasdaq and transitioned to the OTCQB Venture Market. Additionally, the company is undergoing organizational changes, including transitioning services from Liberty Media to internal management, with key personnel changes effective May 13, 2025.

The most recent analyst rating on (QVCGA) stock is a Hold with a $0.50 price target. To see the full list of analyst forecasts on QVC Group stock, see the QVCGA Stock Forecast page.

Executive/Board ChangesShareholder MeetingsStock Split
QVC Group Holds Annual Meeting, Approves Key Proposals
Neutral
May 13, 2025

At QVC Group‘s annual meeting on May 12, 2025, stockholders re-elected Richard N. Barton and M. Ian G. Gilchrist as Class III board members and approved several key proposals. These included a reverse stock split of Series A and B common stocks, ratification of KPMG LLP as independent auditors for 2025, and an advisory approval of executive compensation. The decisions are expected to influence the company’s financial structuring and governance, potentially impacting shareholder value and corporate strategy.

The most recent analyst rating on (QVCGA) stock is a Hold with a $0.50 price target. To see the full list of analyst forecasts on QVC Group stock, see the QVCGA Stock Forecast page.

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: Jul 23, 2025