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QVC Group (QVCGB)
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QVC Group (QVCGB) AI Stock Analysis

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QVCGB

QVC Group

(OTC:QVCGB)

Rating:38Underperform
Price Target:
$30.00
▲(3.45% Upside)
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)

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: |
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
35
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
25
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
45
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue9.63B10.04B10.91B12.11B14.04B14.18B
Gross Profit3.34B3.51B3.69B3.69B4.81B4.89B
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 Investments897.00M905.00M1.12B1.27B587.00M806.00M
Total Debt5.51B5.57B5.96B6.87B7.29B6.94B
Total Liabilities9.59B10.13B10.88B12.05B13.22B13.27B
Stockholders Equity-2.98B-971.00M385.00M412.00M2.85B4.85B
Cash Flow
Free Cash Flow-31.00M289.00M576.00M-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
Negative
Last Price29.00
Price Trends
50DMA
32.09
Negative
100DMA
105.70
Negative
200DMA
155.44
Negative
Market Momentum
MACD
-2.13
Negative
RSI
20.03
Positive
STOCH
<0.01
Positive
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 29 is below the 20-day moving average (MA) of 29.95, below the 50-day MA of 32.09, and below the 200-day MA of 155.44, indicating a bearish trend. The MACD of -2.13 indicates Negative momentum. The RSI at 20.03 is Positive, neither overbought nor oversold. The STOCH value of <0.01 is Positive, 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

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%
61
Neutral
$17.92B12.81-3.11%2.97%1.30%-14.28%
57
Neutral
$11.62B17.86%0.87%54.67%
57
Neutral
$5.36B43.23-39.97%2.38%-38.88%
55
Neutral
$438.81M104.651.90%-7.58%
44
Neutral
$324.17M-54.45%-7.96%-3078.36%
38
Underperform
$76.93M
-7.15%-1299.84%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
QVCGB
QVC Group
29.00
-151.00
-83.89%
FLWS
1-800 Flowers
5.10
-2.16
-29.75%
LE
Lands' End
14.40
0.85
6.27%
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%
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