QVC Group, reconstituting its finances after a 1-for-50 reverse stock split, reported it continues to believe it will benefit from its long-term growth strategy following year-over-year second-quarter declines during what the company called a difficult macroeconomic and media environment.
QVC’s net loss in its second quarter was $2.22 billion versus a net earnings of $20 million in the year-previous quarter.
Net revenue was $2.24 billion versus $2.41 billion in the year-earlier quarter, the company stated. Operating loss was $2.27 billion versus operating income of $165 million in the period a year prior.
Net revenue at the QxH segment, which includes QVC and HSN retail operations, was $1.39 billion versus $1.56 billion in the year-past quarter, while net revenue at QVC International was $593 million versus $576 million and net revenue at Cornerstone was $252 million versus $273 million. Operating loss at QxH was $2.33 billion versus operating income of $106 million in the year-past period, while operating income was $62 million versus $57 million at QVC International and $10 million versus $11 million at Cornerstone.
QxH revenue declined primarily due to a 13% decrease in units shipped and lower shipping and handling revenue, partially offset by favorable returns and 1% gain in average selling price, QVC pointed out. The segment reported sales growth in electronics and declines in all other categories. Cornerstone revenue slipped 8% due to continued softness in interior furniture, outdoor furniture and decor in the home sector, according to QVC.
“We continue to operate in a challenging environment marked by the continued decline of linear television, volatile consumer confidence and uncertainty in international trade,” said David Rawlinson, president and CEO of QVC Group. “Despite a declining top line, we delivered double-digit adjusted OIBDA margin, and we’ve made significant progress with our WIN strategy, growing our social and streaming business revenue such that it is now approaching double-digits as a percentage of total QxH revenue, diversified our sourcing to mitigate tariff uncertainty, and completed the transition of HSN to our Studio Park campus. While it will take time to implement our long-term growth strategy, we remain confident that we have the right plan in place to drive the future of live shopping.”
In May, QVC initiated a 1-for-50 reverse stock split and its board of directors approved a voluntary delisting of QVCGB from the Nasdaq Capital Market and the transition of QVCGB to The OTC Markets Group.
