Qurate Reports Drop In Q1 Revenue
Qurate reported a drop in first quarter revenue as the digital retailer reported declines across its three divisions.
Company-wide, total revenue for the quarter was $2.34 billion, a decrease of 4% from the comparable quarter the previous year. Adjusted net income was $17 million, an increase over the net loss of $20 million in the first quarter of the previous year.
By segment, the QxH division had revenue of $1.54 billion, down 4%; QVC International had revenue of $572 million, down 3%; and Cornerstore had revenue of $231 million, down 11%.
“Our first quarter results demonstrate the continued momentum in our turnaround," said David Rawlinson, president and CEO of Qurate Retail. “We are successfully delivering on our transformation initiatives to reduce costs and improve product margins while prioritizing enhanced merchandise, brand launches, and celebrity partnerships which are hallmarks of the QVC and HSN brands. We are focused on achieving our stated objectives throughout 2024 and positioning the business for sustainable future growth.”
QxH revenue declined primarily due to a 4% decrease in units shipped, partially offset by favorable returns and higher shipping and handling revenue. QxH reported sales declines mainly in home and apparel, partially offset by growth in accessories and jewelry.
Operating income and adjusted OIBDA (Operating Income Before Depreciation and Amortization) margin increased mainly due to higher product margins and lower fulfillment (warehouse and freight) and administrative expenses, partially offset by higher marketing costs. Product margins increased primarily due to a mix shift to higher-margin products and lower supply chain costs.
Fulfillment favorability primarily reflected lower freight rates and efficiencies from Project Athens initiatives. Administrative expenses declined primarily due to lower costs for outside services related to Project Athens. Marketing expenses increased largely due to the normalization of the annual spend compared to the prior year.
QVC International’s constant currency revenue declined slightly as a 4% increase in units shipped was offset by a 5% decrease in average selling price. QVC International reported constant currency revenue growth in home, with declines in all other categories.
Cornerstone's revenue decreased due to continued softness in certain categories in the home sector and for apparel at Garnet Hill. Operating income margin decreased primarily due to higher depreciation related to the opening of six new retail stores and the relocation of four stores in the past year.
