Qurate Q3 Revenue Declines

Third quarter revenue at Qurate was down low-single digits as gains in the company’s QVC International division were offset by declines in its QxH and Cornerstone divisions.

Total revenue for the quarter ended September 30 was $2.47 billion, a drop of 3% from the comparable quarter the previous year. Revenue in the International division was up 4%, while QxH revenue was down 3% and down 13% at Cornerstone. Adjusted net income for the quarter was $40 million, compared to a net loss of $29 million in the comparable quarter the previous year.

“We are delivering on our Project Athens transformation as planned and have made tangible progress toward building a materially stronger profit and cash flow profile,” said David Rawlinson, president and CEO of Qurate Retail. “We produced strong Adjusted OIBDA growth of over 50% as reported with increases at each of our businesses, sustained gross margin gains in our core video commerce businesses and grew free cash flow, all while moderating the decline in revenue compared to the first half of the year.”

By division, QxH revenue declined primarily due to a 3% decrease in units shipped, which was partially offset by a 1% increase in average selling price. QxH experienced a 6% increase in average spend per customer. The division reported declines in electronics, apparel and beauty, with growth in accessories, jewelry and home.

QVC International’s constant currency revenue grew primarily due to a 3% increase in units shipped, which was partially offset by a 1% decrease in average selling price. QVC International reported growth in beauty, home and apparel, with a decline in electronics.

The decrease in revenue at Cornerstone reflected softness and competitive promotional pressure in the home sector as well as lower demand for apparel at Garnet Hill.