Qurate Retail reported a sharp drop in second quarter revenue with the company’s chief executive pointing to supply chain challenges and rising prices as key factors for the decline.
Company-wide revenue for the quarter ended June 30 was $2.95 billion, down 16% from revenue of $3.50 billion in the comparable quarter the previous year. Net income for the quarter was $203 million, down from net income of $222 million in the second quarter of 2021.
On a segment basis, revenue at QxH, which includes QVC and HSN US, was down 12%; QVC International down 19%; Zulily was down 45%; and Cornerstone was up 4%.
David Rawlinson, president and CEO of Qurate Retail, said the company is moving forward with its turnaround plan. In June, the Qurate unveiled Project Athens, a three-year plan to re-establish revenue stability, margin expansion and incremental free cash flow.
Additionally, the company has augmented its executive leadership with the addition of a president for its streaming business and a chief merchandise officer for QVC US.
Qurate has also taken steps to monetize its real estate assets to optimize its balance sheet, increase liquidity and reduce debt.
“We are motivated and confident in our ability to deliver on Project Athens from a bolstered balance sheet position, and we look forward to reporting future progress,” Rawlinson said.
The drop in revenue in the company’s QxH division, which accounts for nearly two-thirds of company sales, was due primarily to a 9% decrease in units shipped. Average selling price declined 3% reflecting a mix shift away from higher price point electronics. QxH reported declines primarily in home, electronics, beauty and accessories