First Quarter Revenue At QVC Group Down
First-quarter sales at QVC Group were down 10% as the company reported revenue declines across its three divisions.
For the three months ended March 31, revenue was $2.1 billion, down from $2.3 billion in the comparable quarter the previous year. Operating income was $14 million, compared to $145 million in the prior year’s first quarter.
By division, revenue at QxH was $1.4 billion, down 11%; QVC International reported revenue of $537 million, down 6%; and Cornerstone posted revenue of $200 million, down 13%.
David Rawlinson, president and CEO of QVC Group, said the company faced a challenging market backdrop in the quarter, with issues such as declining linear television viewership and tariff volatility negatively impacting the business.
“We continue to execute on our long-term strategy and are working to remain agile as we navigate these current headwinds,” he said. “In particular, we believe social shopping is a transformative opportunity and are moving quickly to be a leader here. QVC’s agreement with TikTok is a first-of-its-kind partnership for 24/7 content creation and is one example of the innovation we will continue to deploy to reinvent our business.”
Revenue in the QxH division was down primarily due to a 10% decrease in units shipped, a 2% decline in average selling price, and lower shipping and handling revenue — partially offset by favorable returns. QxH reported sales declines across all categories.
QVC International results were negatively impacted by exchange rate fluctuations, as the U.S. dollar weakened against the British pound and the euro, partially offset by a 3% strengthening of the dollar against the Japanese yen. The division’s constant currency revenue declined due to a 4% decrease in units shipped and a 1% decrease in average selling price. QVC International reported constant currency revenue declines across home, beauty, and apparel, with growth in jewelry and electronics.
Cornerstone revenue decreased due to continued softness in interior and outdoor furniture, home décor, and apparel at Garnet Hill.
