QVC Group posted another difficult quarter as widening losses, weakening revenues and pressure across its QxH and Cornerstone businesses heightened concerns about the company’s turnaround trajectory.
Company net loss was $80 million versus a net loss of $23 million in the year-earlier quarter.
Revenues were $2.21 billion versus $2.34 billion in the year-before quarter. Operating income was $60 million versus $152 million in the year-previous period, the company reported.
Adjusted operating income before depreciation and amortization, a favored QVC metric, decreased 32% in U.S. dollars and decreased 34% in constant currency.
Revenue at QxH, including QVC and HSN operations, slipped 7% to $1.42 billion, while revenue at Cornerstone fell 8% to $231 million in the quarter year over year. QxH operating income slid 55% to $48 million, while operating loss at Cornerstone increased to $9 million from $2 million in the period year over year.
David Rawlinson, QVC Group president and CEO, said in a conference call that the company will continue pursuing its strategy of building its social shopping operations but is navigating declines in its traditional television business. Home revenue declined, he said, but seasonal items for fall and holiday were stronger.
In announcing the financial results, Rawlinson said, “We are early in our WIN growth plan but continue to make progress. We reduced the year-over-year rate of revenue decline in our QxH segment despite the decline in linear television viewership, driven by revenue growth in our social and streaming platforms. Although we are encouraged by the progress we are making, deleveraging from our total revenue decline, tariffs and other critical investments, pressured our adjusted OIBDA.”
