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QVC Group (QVCGB)
OTHER OTC:QVCGB
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QVC Group
(OTC:QVCGB)
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Rating:40Underperform
Price Target:
$25.00
▼(-5.66% Downside)
QVC Group's overall stock score is low due to significant financial instability, bearish technical indicators, and poor valuation metrics. Although there are positive developments in social and streaming growth and debt reduction, the overall financial health and market sentiment remain concerning.
QVC Group (QVCGB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$113.42M
Dividend YieldN/A
Average Volume (3M)23.00
Price to Earnings (P/E)―
Beta (1Y)-1.01
Revenue Growth-7.15%
EPS Growth-1299.84%
CountryUS
Employees18,984
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)-275.41
Shares Outstanding182,233
10 Day Avg. Volume0
30 Day Avg. Volume23
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 Cap54.73
Enterprise Value/Revenue0.64
Enterprise Value/Gross Profit1.86
Enterprise Value/Ebitda-2.05
Forecast
1Y Price Target
$25.00Price Target Upside-5.66% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering0
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 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: |
Next Earnings Date:Oct 31, 2025
Earnings Call Sentiment Neutral
The earnings call reflects both significant achievements in cost-cutting, social and streaming growth, and debt reduction, alongside challenges including revenue decline, decreased customer count, and impairment charges. Efforts to diversify sourcing and tackle tariff impacts show proactive management, while the suspension of dividends and revenue drops highlight existing pressures.Q2-2025 Updates
Positive Updates
Cost-Cutting and Operational Milestones
QVC Group successfully transitioned HSN's operations to Studio Park in Westchester, Pennsylvania, consolidating 5 U.S. TV channels under one roof, leading to cost reductions and advancing their WIN growth strategy.
Growth in Social and Streaming Platforms
Social and streaming revenue experienced over 30% growth versus Q2 of 2024, with new social customers growing by over 100,000 through TikTok Shop alone.
Successful Strategic Sourcing Diversification
QVC Group continued to diversify sourcing to reduce dependence on single-country tariffs, targeting no single country representing more than 1/3 of sourced goods in the U.S. by year-end.
Improved Customer Engagement
Streaming monthly active users grew over 80% to nearly 1.5 million users, with streaming minutes watched growing 25% in the quarter.
Significant Debt Reduction
QVC Group reduced net debt by over $1.5 billion since the end of 2021, enhancing financial flexibility.
Negative Updates
Decline in Overall Revenue
Total revenue declined by 9% in constant currency, with QxH revenue declining 11% and QVC International revenue declining 3% in constant currency.
Decreased Customer Count
Total QxH customer count declined 12% in the quarter, driven by a 10% decrease in existing customers, a 21% decrease in new customers, and a 16% decrease in reactivated customers.
Impairment Charges
The operating loss was primarily driven by a $2.4 billion noncash impairment charge related to goodwill and trade names.
Suspension of Quarterly Dividend
The Board suspended payment of the quarterly dividend for preferred stockholders to preserve cash and enhance long-term value.
Pressure from Tariffs
Tariffs impacted the inventory mix, deliveries, and product availability, with pricing actions taken during the Christmas in July event.
Company Guidance
During QVC Group's Second Quarter 2025 Earnings Call, the company provided guidance on various metrics, highlighting their strategic initiatives and financial performance. The call, led by key executives including CEO David Rawlinson and CFO Bill Wafford, emphasized the challenges faced in a difficult macroeconomic environment, with total revenue declining by 9% in constant currency and QxH revenue falling by 11%. However, the company reported growth in social and streaming channels, with social and streaming revenue experiencing over 30% growth compared to Q2 2024, and streaming monthly active users growing over 80% to nearly 1.5 million users. They also noted a significant increase in new customers through platforms like TikTok, with over 100,000 new customers acquired in the quarter. Efforts to diversify sourcing and reduce tariff impacts were discussed, with a target for no single country to represent more than one-third of sourced goods in the U.S. by year-end. The adjusted OIBDA margin contracted 165 basis points, with operating expenses decreasing by 13%. QVC Group also highlighted their focus on strengthening their capital structure, having reduced net debt by over $1.5 billion since the end of 2021, and addressed the suspension of their quarterly dividend for preferred stockholders to preserve cash and enhance long-term value.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
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.30
Negative
Balance Sheet
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.20
Very Negative
Cash Flow
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.25
Negative
| 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
Negative
26.50
Price Trends
29.86
Negative
68.74
Negative
145.48
Negative
Market Momentum
-1.35
Negative
20.16
Positive
50.00
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 26.5 is below the 20-day moving average (MA) of 27.09, below the 50-day MA of 29.86, and below the 200-day MA of 145.48, indicating a bearish trend. The MACD of -1.35 indicates Negative momentum. The RSI at 20.16 is Positive, neither overbought nor oversold. The STOCH value of 50.00 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
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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $1.57B | 34.94 | 9.66% | ― | 10.68% | 37.84% | |
60 Neutral | $456.23M | 80.51 | 2.66% | ― | -8.78% | ― | |
59 Neutral | $6.36B | 51.33 | -14.58% | ― | 2.38% | -38.88% | |
57 Neutral | $11.26B | -36.19 | 17.86% | ― | 0.87% | 54.67% | |
44 Neutral | $303.46M | -1.51 | -74.55% | ― | -7.96% | -3078.36% | |
40 Underperform | $113.42M | ― | ― | ― | -7.15% | -1299.84% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
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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.