Qurate Retail Q2 Revenue Declines
Company-wide revenue at Qurate Retail for the second quarter was down 9% as the company reported revenue decline across its three divisions.
By division, revenue at QxH was $1.6 billion, down 4% year-over-year; QVC International revenue was $576 million, down 5%; and revenue at Cornerstone was $273 million, down 14%.
“We delivered a solid quarter of earnings in a continued challenged macro environment,” said David Rawlinson, president and CEO of Qurate Retail. “While revenue was in line with overall discretionary retail, we expanded gross margins for the fifth consecutive quarter.”
According to the company, QxH revenue declined due to a 5% decrease in units shipped and lower shipping and handling revenue, partially offset by a 2% increase in average selling price. QxH reported sales declines mainly in beauty, apparel, and accessories, partially offset by growth in jewelry.
Product margins increased due to higher initial margins driven by Project Athens initiatives and mix shift to higher-margin products, partially offset by lower shipping and handling revenue. Fulfillment favorability was due to efficiencies from Project Athens and average selling price leverage. Administrative expenses declined due to lower costs for outside services related to Project Athens. Marketing expenses increased primarily due to QVC’s Age of Possibility campaign launch in April and associated brand marketing.
QVC International’s revenue declined by 5% in U.S. Dollars. In constant currency, revenue was flat driven by a 4% increase in units shipped, offset by a 3% decrease in average selling price as well as higher returns. QVC International reported constant currency growth in jewelry, beauty, and electronics, with a decline in home.
Cornerstone revenue decreased due to continued softness in the home sector. Operating income and Adjusted OIBDA margin decreased due to the deleveraging of selling, general, and administrative expenses, partially offset by lower supply chain costs.
“We remain focused on enhancing our merchandise assortment, improving product margins, and diligently managing costs,” said Rawlinson. “We are also excited about the opportunity in better serving our core customers of women over 50 as part of the QVC Age of Possibility campaign we launched in April.”
