QVC Group (QVCGB) AI Stock Analysis

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QVC Group

(OTC:QVCGB)

Rating:38Underperform

Price Target:

$30.00

▼(-3.23% Downside)

QVC Group's overall stock score is primarily impacted by its poor financial performance and weak technical indicators. The company's financial instability, characterized by declining revenues, negative margins, and high leverage, is a significant concern. Technical analysis indicates bearish momentum, further weighing down the score. Valuation metrics are unfavorable, with a negative P/E ratio and no dividend yield. While the earnings call provided some positive developments, they are insufficient to offset the broader challenges.

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

Market Cap

$40.67M

Dividend YieldN/A

Average Volume (3M)6.00

Price to Earnings (P/E)―

Beta (1Y)-1.00

Revenue Growth-7.15%

EPS Growth-1299.84%

CountryUS

Employees18,984

SectorConsumer Cyclical

Sector Strength73

IndustrySpecialty Retail

Share Statistics

EPS (TTM)-275.41

Shares Outstanding182,233

10 Day Avg. Volume20

30 Day Avg. Volume6

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap152.60

Enterprise Value/Revenue0.64

Enterprise Value/Gross Profit1.86

Enterprise Value/Ebitda-2.05

Forecast

1Y Price Target

$30.00

Price Target Upside-3.23% Downside

Rating ConsensusModerate Sell

Number of Analyst Covering1

QVC Group Business Overview & Revenue Model

Company DescriptionQVC Group (QVCGB) is a leading multimedia retailer specializing in the home shopping sector. The company operates through various platforms, including television broadcasts, online shopping, and mobile applications, offering a diverse range of products such as electronics, fashion, beauty, and home goods. QVCGB is known for its interactive shopping experience, providing customers with live demonstrations, product showcases, and the opportunity to engage with hosts and other shoppers in real-time.

How the Company Makes MoneyQVCGB generates revenue primarily through product sales during its live shopping broadcasts and online platforms. The company's revenue model is based on a commission structure where it sells products from various vendors and retains a percentage of the sales price. Key revenue streams include direct sales of products, subscription services for exclusive content, and advertising partnerships with brands looking to promote their products on QVC's platforms. Additionally, QVCGB benefits from strategic partnerships with well-known retailers and brands, which help to drive sales and expand its product offerings, thereby enhancing its overall earnings.

QVC Group Earnings Call Summary

Earnings Call Date:Aug 07, 2025

(Q2-2025)

% Change Since: -4.62%|

Next Earnings Date:Oct 31, 2025

Earnings Call Sentiment Neutral

The earnings call reflected a mixed outlook with notable achievements in social and streaming growth, successful operational transitions, and significant debt reduction. However, these were counterbalanced by declines in revenue, customer count, and ongoing macroeconomic challenges impacting performance.

Q2-2025 Updates

Positive Updates

Successful Transition of HSN Operations

Completed the transition of HSN's operations to Studio Park in Westchester, Pennsylvania, consolidating operations under one roof to generate cost reductions and advance the WIN growth strategy.

Growth in Social and Streaming Channels

Social and streaming revenue experienced over 30% growth versus Q2 2024, with over 100,000 new customers finding QVC through TikTok shop alone. Streaming monthly active users grew over 80% to nearly 1.5 million users.

Significant Debt Reduction

Reduced net debt by over $1.5 billion since the end of 2021, creating more flexibility for transformation and sustainable growth.

Strategic Sourcing Diversification

Continued efforts to diversify sourcing to ensure no single country represents more than 1/3 of sourced goods by year-end, reducing tariff pressures.

Negative Updates

Decline in Total Revenue

Total revenue declined by 9% in constant currency. QxH's revenue declined 11%, QVC International revenue declined 3%, and Cornerstone revenue declined 8%.

Customer Count Decrease

Total QxH customer count declined 12% in the quarter, with a 10% decrease in existing customers, a 21% decrease in new, and a 16% decrease in reactivated customers.

Macroeconomic and Geopolitical Challenges

Ongoing macroeconomic challenges, including declining linear TV viewership, volatility in consumer confidence, and geopolitical events, continue to impact performance.

Adjusted OIBDA Decline

Consolidated adjusted OIBDA declined 19% in constant currency in the second quarter, an improvement but still significant.

Company Guidance

During QVC Group's second quarter 2025 earnings call, the company provided several key metrics highlighting the challenges and progress made in a difficult macroeconomic environment. Revenue for QVC International declined 3% in constant currency, while QxH's revenue fell by 11%. Social and streaming channels experienced robust growth, with over 30% increase compared to Q2 2024, and streaming monthly active users grew over 80% to nearly 1.5 million users. Despite a total revenue decline of 9% in constant currency, the company reduced net debt by over $1.5 billion since the end of 2021. The QxH customer count declined 12%, driven by decreases in new, existing, and reactivated customers. However, the company noted strong engagement on new platforms, with over 100,000 new customers purchasing through TikTok Shop in the second quarter. Adjusted OIBDA for the quarter decreased 19% in constant currency, an improvement from the first quarter's 31% decline compared to the previous year.

QVC Group Financial Statement Overview

Summary

QVC Group faces substantial financial challenges with declining revenues, persistent losses, and negative equity. Despite some ability to generate operating cash flow, the high leverage and negative equity position present significant risks.

Income Statement

Negative

QVC Group's income statement reveals significant challenges. The TTM (Trailing-Twelve-Months) shows a declining revenue trend, with a revenue decrease from $10.037 billion to $9.8 billion. The gross profit margin stands at 34.7%, indicating some ability to manage cost of goods sold. However, the net profit margin is concerning at -14.2%, reflecting substantial net losses. Both EBIT and EBITDA margins are negative, further highlighting operational inefficiencies and profitability issues.

Balance Sheet

Negative

The balance sheet presents a precarious financial position. The debt-to-equity ratio is not calculable due to negative equity, reflecting excessive leverage and financial instability. Stockholders' equity is negative, primarily due to accumulated losses, which is a critical red flag. The equity ratio is also negative, indicating that liabilities exceed assets. This indicates potential solvency risks and vulnerability to economic fluctuations.

Cash Flow

Neutral

Cash flow statements provide a mixed view. Operating cash flow is positive at $439 million, suggesting some ability to generate cash from operations. However, free cash flow has decreased significantly over the years, from $794 million in 2021 to $168 million in the TTM. The operating cash flow to net income ratio is positive due to negative net income, but this is not a strength given the losses. Free cash flow to net income ratio is not meaningful due to negative net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.63B	10.04B	10.91B	12.11B	14.04B	14.18B
Gross Profit	3.34B	3.51B	3.69B	3.69B	4.81B	4.89B
EBITDA	-3.03B	-440.00M	924.00M	-1.37B	1.64B	2.02B
Net Income	-3.63B	-1.29B	-145.00M	-2.59B	340.00M	1.20B
Balance Sheet
Total Assets	6.70B	9.24B	11.37B	12.57B	16.20B	17.00B
Cash, Cash Equivalents and Short-Term Investments	897.00M	905.00M	1.12B	1.27B	587.00M	806.00M
Total Debt	5.51B	5.57B	5.96B	6.87B	7.29B	6.94B
Total Liabilities	9.59B	10.13B	10.88B	12.05B	13.22B	13.27B
Stockholders Equity	-2.98B	-971.00M	385.00M	412.00M	2.85B	4.85B
Cash Flow
Free Cash Flow	-31.00M	289.00M	576.00M	-119.00M	794.00M	2.14B
Operating Cash Flow	258.00M	525.00M	919.00M	194.00M	1.23B	2.46B
Investing Cash Flow	-294.00M	-225.00M	-54.00M	601.00M	-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

Negative

Last Price31.00

Price Trends

50DMA

35.55

Negative

100DMA

149.06

Negative

200DMA

165.80

Negative

Market Momentum

MACD

-4.16

Negative

RSI

25.20

Positive

STOCH

25.00

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QVCGB, the sentiment is Negative. The current price of 31 is below the 20-day moving average (MA) of 32.83, below the 50-day MA of 35.55, and below the 200-day MA of 165.80, indicating a bearish trend. The MACD of -4.16 indicates Negative momentum. The RSI at 25.20 is Positive, neither overbought nor oversold. The STOCH value of 25.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for QVCGB.

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

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

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
RVLV	74 Outperform	$1.55B	33.66	10.36%	―	10.68%	37.84%
ETSY	63 Neutral	$6.76B	54.55	-39.97%	―	2.38%	-38.88%
Sector *	61 Neutral	$17.23B	11.50	-5.97%	3.09%	1.49%	-16.00%
W	56 Neutral	$10.25B	―	17.86%	―	0.87%	54.67%
LE	55 Neutral	$388.53M	94.04	1.90%	―	-7.58%	―
FLWS	47 Neutral	$352.78M	―	-42.08%	―	-8.53%	-2070.29%
QVCGB	38 Underperform	$40.67M	―		―	-7.15%	-1299.84%

* Consumer Cyclical Sector Average

Performance Comparison

QVCGB

QVC Group

31.50

-175.50

-84.78%

FLWS

1-800 Flowers

5.46

-3.73

-40.59%

Lands' End

12.94

-2.19

-14.47%

Wayfair

78.73

34.65

78.61%

ETSY

Etsy

66.43

11.55

21.05%

RVLV

Revolve Group

21.18

-3.18

-13.05%

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 14, 2025