Qurate Retail, Inc. Reports Third Quarter 2024 Financial Results

Business Wire11-07

ENGLEWOOD, Colo., November 07, 2024--(BUSINESS WIRE)--Qurate Retail, Inc. ("Qurate Retail") (Nasdaq: QRTEA, QRTEB, QRTEP) today reported third quarter 2024 results(1). "While the third quarter was ...

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(\"Qurate Retail\") (Nasdaq: QRTEA, QRTEB, QRTEP) today reported third quarter 2024 results(1).\n\"While the third quarter was ...</p>\n\n<a href=\"https://finance.yahoo.com/news/qurate-retail-inc-reports-third-120000108.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Qurate Retail, Inc. Reports Third Quarter 2024 Financial Results</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nQurate Retail, Inc. Reports Third Quarter 2024 Financial Results\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-07 20:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/qurate-retail-inc-reports-third-120000108.html><strong>Business Wire</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>ENGLEWOOD, Colo., November 07, 2024--(BUSINESS WIRE)--Qurate Retail, Inc. (\"Qurate Retail\") (Nasdaq: QRTEA, QRTEB, QRTEP) today reported third quarter 2024 results(1).\n\"While the third quarter was ...</p>\n\n<a href=\"https://finance.yahoo.com/news/qurate-retail-inc-reports-third-120000108.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"QRTEB","symbol_name":"Qurate Retail-B","start_time":0,"source_url":"https://finance.yahoo.com/news/qurate-retail-inc-reports-third-120000108.html","article_id":"2481903423","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/8R6r8l09ng.W5kzgCs2yYg--~B/aD0yODE7dz03ODQ7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/business-wire.com/33e902b87fc1e76a1083e27b2431119a"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2481903423","pubTimestamp":1730980800,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"ENGLEWOOD, Colo., November 07, 2024----Qurate Retail, Inc.   today reported third quarter 2024 results.\"While the third quarter was anticipated to be the most difficult quarter of 2024, current headline events and the challenging macro-economic climate heavily impacted viewership of our programming and consumer behavior more than expected,\" said David Rawlinson, President and CEO of Qurate Retail. \"As a result, revenue underperformed this quarter and resulted in meaningful bottom-line deleverage. Despite this, we were able to hold consolidated gross margin flat with disciplined cost management and reduced operating expenses. We also continued our proactive balance sheet management, completing an offer in which 89% of QVC’s 2027 and 2028 notes were tendered which improves the QVC credit profile with reduced debt and an extended maturity profile.\"We are nearing the end of our multi-year Project Athens initiative focused on margin and free cash flow. The team has materially improved the b","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"QRTEB":"Qurate Retail-B","QVCD":"QVC, Inc.","BK4122":"互联网与直销零售","QVCC":"QVC Inc","BK4220":"综合零售","QRTEP":"Qurate Retail, Inc.","QRTEA":"Qurate Retail-A"},"translate_title":"Qurate Retail，Inc.报告2024年第三季度财务业绩","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"QRTEP":1,"QRTEA":0.9,"QRTEB":0.9,"QVCC":0.9,"QVCD":0.9},"content_text":"ENGLEWOOD, Colo., November 07, 2024--(BUSINESS WIRE)--Qurate Retail, Inc. (\"Qurate Retail\") (Nasdaq: QRTEA, QRTEB, QRTEP) today reported third quarter 2024 results(1).\n\"While the third quarter was anticipated to be the most difficult quarter of 2024, current headline events and the challenging macro-economic climate heavily impacted viewership of our programming and consumer behavior more than expected,\" said David Rawlinson, President and CEO of Qurate Retail. \"As a result, revenue underperformed this quarter and resulted in meaningful bottom-line deleverage. Despite this, we were able to hold consolidated gross margin flat with disciplined cost management and reduced operating expenses. We also continued our proactive balance sheet management, completing an offer in which 89% of QVC’s 2027 and 2028 notes were tendered which improves the QVC credit profile with reduced debt and an extended maturity profile.\n\"We are nearing the end of our multi-year Project Athens initiative focused on margin and free cash flow. The team has materially improved the business, becoming a more profitable, leaner and more nimble organization. We are transitioning to the next phase of our strategic growth as we enhance our capabilities to reach aggregated audiences on primarily social and streaming platforms.\"\nThird quarter 2024 headlines:\n\nQurate Retail revenue decreased 5% in both US Dollars and constant currency(2)\nGenerated $152 million in operating income\nAdjusted OIBDA(3) decreased 12% in both US Dollars and constant currency to $250 million\nQxH revenue decreased 6%\nQVC International revenue decreased 1% in both US Dollars and constant currency\nCornerstone revenue decreased 12%\nTendered 89% of QVC, Inc.’s 2027 and 2028 notes\n  \nPartially funded with $605 million of new 6.875% senior secured notes due 2029\nImproves QVC credit position with reduced debt balance and extended maturity profile\n\n\nDiscussion of Results\nUnless otherwise noted, the following discussion compares financial information for the three months ended September 30, 2024 to the same period in 2023.\n\n\n\nTHIRD QUARTER 2024 FINANCIAL RESULTS\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n(amounts in millions)\n\n3Q23\n\n3Q24\n\n% Change\n\n% Change Constant Currency(a)\n\n\nRevenue\n\n\n\n\n\n\n\n\n\n\n\n\nQxH\n\n$\n1,617\n\n\n$\n1,521\n\n\n(6\n)%\n\n\n\n\nQVC International\n\n\n577\n\n\n\n571\n\n\n(1\n)%\n\n(1\n)%\n\n\nCornerstone\n\n\n285\n\n\n\n252\n\n\n(12\n)%\n\n\n\n\nTotal Qurate Retail Revenue\n\n\n2,479\n\n\n\n2,344\n\n\n(5\n)%\n\n(5\n)%\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nOperating Income (Loss)\n\n\n\n\n\n\n\n\n\n\n\n\nQxH(b)\n\n$\n91\n\n\n$\n107\n\n\n18\n%\n\n\n\n\nQVC International\n\n\n63\n\n\n\n57\n\n\n(10\n)%\n\n(8\n)%\n\n\nCornerstone\n\n\n4\n\n\n\n(2\n)\n\nNM\n\n\n\n\n\nUnallocated corporate cost\n\n\n(7\n)\n\n\n(10\n)\n\n(43\n)%\n\n\n\n\nTotal Qurate Retail Operating Income\n\n\n151\n\n\n\n152\n\n\n1\n%\n\n1\n%\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nAdjusted OIBDA\n\n\n\n\n\n\n\n\n\n\n\n\nQxH(b)\n\n$\n201\n\n\n$\n182\n\n\n(9\n)%\n\n\n\n\nQVC International\n\n\n77\n\n\n\n70\n\n\n(9\n)%\n\n(9\n)%\n\n\nCornerstone\n\n\n11\n\n\n\n6\n\n\n(45\n)%\n\n\n\n\nUnallocated corporate cost\n\n\n(4\n)\n\n\n(8\n)\n\n(100\n)%\n\n\n\n\nTotal Qurate Retail Adjusted OIBDA\n\n$\n285\n\n\n$\n250\n\n\n(12\n)%\n\n(12\n)%\n\n\n\n\n\n\n________________________________________\n\n\na)\n\nFor a definition of constant currency financial metrics, see the accompanying schedules.\n\n\nb)\n\nIn the third quarter of 2023, QxH incurred (i) a $2 million gain on the sale of its Rocky Mount, NC fulfillment center (\"Rocky Mount\") in February 2023 on proceeds released from escrow and (ii) $21 million of restructuring, penalty and fire-related costs. These items are included in operating income and excluded from Adjusted OIBDA. See Reconciling Schedule 2.\n\n\n\nQxH\nQxH revenue declined due to a 6% decrease in units shipped as well as lower shipping and handling revenue, partially offset by favorable returns. QxH reported declines in all categories.\nOperating income increased in the third quarter comparing against $19 million of one-time net restructuring costs and penalties incurred in the prior year period.\nAdjusted OIBDA margin(3) decreased due to fulfillment (warehouse and freight) pressure and sales deleverage, partially offset by higher product margins. Fulfillment pressure was driven by higher fulfillment center wages and freight rates and deleverage, partially offset by increased productivity efficiencies. Operating expenses decreased 6% due to lower commissions. Selling, general and administrative expenses decreased 4% driven by lower personnel expense and outside services costs, partially offset by increased marketing costs due to brand marketing to support QVC’s Age of Possibility campaign.\nQVC International\nQVC International’s constant currency revenue decreased primarily due to a 3% decrease in average selling price, partially offset by a 1% increase in units shipped and favorable returns. QVC International reported constant currency growth in home and accessories, with a decline in apparel and beauty.\nOperating income and Adjusted OIBDA margin decreased primarily due to higher fulfillment costs and lower product margins, partially offset by lower operating expenses. Fulfillment costs increased due to higher freight rates and fulfillment center wages. Product margins decreased reflecting lower initial margin due to product mix and higher ocean freight rates, partially offset by favorable returns.\nUS Dollar denominated results were not materially impacted by exchange rate fluctuations. The Dollar weakened 3% against the British Pound, 1% against the Euro and strengthened 3% against the Japanese Yen. The financial metrics presented in this press release also provide a comparison of the percentage change in QVC International’s results in constant currency to the comparable figures calculated in accordance with US GAAP, where applicable.\nCornerstone\nCornerstone revenue decreased, reflecting softness and competitive promotional pressure in the home sector. Cornerstone is implementing a transformation plan to improve its revenue and profitability given the continued challenges in the housing sector. Operating income and Adjusted OIBDA margin decreased mainly due to higher costs for outside services related to its transformation plan and sales deleverage, partially offset by lower supply chain costs.\n\n\n\nTHIRD QUARTER 2024 SUPPLEMENTAL METRICS\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n(amounts in millions unless otherwise noted)\n\n3Q23\n\n3Q24\n\n% Change\n\n% Change Constant Currency(a)\n\n\nQxH\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nCost of Goods Sold % of Revenue\n\n\n65.4\n%\n\n\n65.5\n%\n\n10\nbps\n\n\n\n\nOperating Income Margin (%)(b)\n\n\n5.6\n%\n\n\n7.0\n%\n\n140\nbps\n\n\n\n\nAdjusted OIBDA Margin (%)(b)\n\n\n12.4\n%\n\n\n12.0\n%\n\n(40\n)bps\n\n\n\n\nAverage Selling Price\n\n$\n51.78\n\n\n$\n51.76\n\n\n0\n%\n\n\n\n\nUnits Sold\n\n\n\n\n\n\n\n\n\n(6\n)%\n\n\n\n\nReturn Rate(c)\n\n\n15.4\n%\n\n\n14.6\n%\n\n(80\n)bps\n\n\n\n\neCommerce Revenue(d)\n\n$\n996\n\n\n$\n967\n\n\n(3\n)%\n\n\n\n\neCommerce % of Total Revenue\n\n\n61.6\n%\n\n\n63.6\n%\n\n200\nbps\n\n\n\n\nMobile % of eCommerce Revenue(e)\n\n\n69.0\n%\n\n\n70.7\n%\n\n170\nbps\n\n\n\n\nLTM Total Customers(f)\n\n\n8.2\n\n\n\n7.9\n\n\n(4\n)%\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nQVC International\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nCost of Goods Sold % of Revenue\n\n\n63.4\n%\n\n\n64.6\n%\n\n120\nbps\n\n\n\n\nOperating Income Margin (%)\n\n\n10.9\n%\n\n\n10.0\n%\n\n(90\n)bps\n\n\n\n\nAdjusted OIBDA Margin (%)\n\n\n13.3\n%\n\n\n12.3\n%\n\n(100\n)bps\n\n\n\n\nAverage Selling Price\n\n\n\n\n\n\n\n\n\n(3\n)%\n\n(3\n)%\n\n\nUnits Sold\n\n\n\n\n\n\n\n\n\n1\n%\n\n\n\n\nReturn Rate(c)\n\n\n19.6\n%\n\n\n18.9\n%\n\n(70\n)bps\n\n\n\n\neCommerce Revenue(d)\n\n$\n283\n\n\n$\n297\n\n\n5\n%\n\n5\n%\n\n\neCommerce % of Total Revenue\n\n\n49.0\n%\n\n\n52.0\n%\n\n300\nbps\n\n\n\n\nMobile % of eCommerce Revenue(e)\n\n\n69.3\n%\n\n\n76.1\n%\n\n680\nbps\n\n\n\n\nLTM Total Customers(f)\n\n\n4.2\n\n\n\n4.0\n\n\n(5\n)%\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nCornerstone\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nCost of Goods Sold % of Revenue\n\n\n62.8\n%\n\n\n59.9\n%\n\n(290\n)bps\n\n\n\n\nOperating Income Margin (%)\n\n\n1.4\n%\n\n\nNM\n\n\nNM\n\n\n\n\n\nAdjusted OIBDA Margin (%)\n\n\n3.9\n%\n\n\n2.4\n%\n\n(150\n)bps\n\n\n\n\neCommerce Revenue(d)\n\n$\n218\n\n\n$\n188\n\n\n(14\n)%\n\n\n\n\neCommerce % of Total Revenue\n\n\n76.5\n%\n\n\n74.6\n%\n\n(190\n)bps\n\n\n\n\n\n\n\n\n________________________________________\n\n\na)\n\nFor a definition of constant currency financial metrics, see the accompanying schedules.\n\n\nb)\n\nIn the third quarter of 2023, QxH incurred (i) a $2 million gain on the sale of Rocky Mount in February 2023 on proceeds released from escrow and (ii) $21 million of restructuring, penalty and fire-related costs. These items are included in operating income and excluded from Adjusted OIBDA. See Reconciling Schedule 2.\n\n\nc)\n\nMeasured as returned sales over gross shipped sales in US Dollars.\n\n\nd)\n\nBased on net revenue.\n\n\ne)\n\nBased on gross US Dollar orders.\n\n\nf)\n\nLTM: Last twelve months.\n\n\n\n\n\n\nFOOTNOTES\n\n\n1)\n\nQurate Retail will discuss these headlines and other matters on Qurate Retail’s earnings conference call that will begin at 8:30 a.m. (E.T.) on November 7, 2024. For information regarding how to access the call, please see \"Important Notice\" later in this document.\n\n\n2)\n\nFor a definition of constant currency financial metrics, see the accompanying schedules. Applicable reconciliations can be found in the financial tables at the beginning of this press release.\n\n\n3)\n\nFor definitions and applicable reconciliations of Adjusted OIBDA and Adjusted OIBDA margin, see the accompanying schedules.\n\n\n\nNOTES\nCash and Debt\nThe following presentation is provided to separately identify cash and debt information.\n\n\n\n\n\n\n\n\n\n\n\n\n(amounts in millions)\n\n6/30/2024\n\n9/30/2024\n\n\nCash and cash equivalents (GAAP)\n\n$\n1,210\n\n\n$\n873\n\n\n\n\n\n\n\n\n\n\n\n\nDebt:\n\n\n\n\n\n\n\n\nQVC senior secured notes(a)\n\n$\n3,086\n\n\n$\n2,732\n\n\n\nQVC senior secured bank credit facility\n\n\n1,225\n\n\n\n1,280\n\n\n\nTotal Qurate Retail Group Debt\n\n$\n4,311\n\n\n$\n4,012\n\n\n\n\n\n\n\n\n\n\n\n\nSenior notes(a)\n\n\n792\n\n\n\n792\n\n\n\nSenior exchangeable debentures(b)\n\n\n779\n\n\n\n779\n\n\n\nCorporate Level Debentures\n\n\n1,571\n\n\n\n1,571\n\n\n\nTotal Qurate Retail, Inc. Debt\n\n$\n5,882\n\n\n$\n5,583\n\n\n\nUnamortized discount, fair market value adjustment and deferred loan costs\n\n\n(543\n)\n\n\n(524\n)\n\n\nTotal Qurate Retail, Inc. Debt (GAAP)\n\n$\n5,339\n\n\n$\n5,059\n\n\n\n\n\n\n\n\n\n\n\n\nOther Financial Obligations:\n\n\n\n\n\n\n\n\nPreferred stock(c)\n\n$\n1,272\n\n\n$\n1,272\n\n\n\n\n\n\n\n\n\n\n\n\nQVC, Inc. leverage(d)\n\n\n3.1x\n\n\n3.1x\n\n\n\n\n\n\n________________________________________\n\n\na)\n\nFace amount of Senior Notes and Debentures with no reduction for the unamortized discount.\n\n\nb)\n\nFace amount of Senior Exchangeable Debentures with no adjustment for the fair market value adjustment.\n\n\nc)\n\nPreferred Stock has an 8% coupon, $100 per share initial liquidation preference plus accrued and unpaid dividends and is non-voting. It is subject to mandatory redemption on March 15, 2031. The Preferred Stock is considered a liability for GAAP purposes, and is recorded net of capitalized costs.\n\n\nd)\n\nAs defined in QVC’s credit agreement. A portion of expected cost savings are included in Adjusted EBITDA for purposes of the covenant calculations under QVC’s bank credit facility.\n\n\n\nCash at Qurate Retail decreased $337 million in the third quarter primarily due to net debt repayment and capital expenditures during the period. On September 26, 2024, QVC completed an offer in which 89% of its 4.75% senior secured notes due 2027 and 4.375% senior secured notes due 2028 were tendered. The transaction was funded by $605 million of new 6.875% senior secured notes due 2029 and $352 million of cash. Total debt at Qurate Retail decreased $299 million in the third quarter due to the repurchase of QVC’s 2027 and 2028 senior secured notes, partially offset by the issuance of the new 2029 senior secured notes and additional net borrowing under QVC’s bank credit facility.\nQVC’s bank credit facility has $1.3 billion drawn as of September 30, 2024 with incremental availability of $1.8 billion, net of letters of credit. QVC’s leverage ratio, as defined by the QVC revolving credit facility, was 3.1x at quarter-end. Pursuant to the terms of QVC’s revolving credit facility, a portion of expected cost savings are included in operating income for purposes of QVC’s leverage ratio for covenant calculations.\nAs of September 30, 2024, QVC’s consolidated leverage ratio (as calculated under QVC’s senior secured notes) was greater than 3.5x and as a result QVC is restricted in its ability to make unlimited dividends or other restricted payments. Dividends made by QVC to service the principal and interest of indebtedness of its parent entities, as well as payments made by QVC to Qurate Retail under an intercompany tax sharing agreement in respect of certain tax obligations of QVC and its subsidiaries, are permitted under the bond indenture and credit agreement.\nQurate Retail is in compliance with all debt covenants as of September 30, 2024.\nImportant Notice: Qurate Retail, Inc. (Nasdaq: QRTEA, QRTEB, QRTEP) will discuss Qurate Retail’s earnings release on a conference call which will begin at 8:30 a.m. (E.T.) on November 7, 2024. The call can be accessed by dialing (877) 704-4234 or (215) 268-9904, passcode 13744091, at least 10 minutes prior to the start time. The call will also be broadcast live across the Internet and archived on our website. To access the webcast go to https://www.qurateretail.com/investors/news-events/ir-calendar. Links to this press release and replays of the call will also be available on Qurate Retail’s website.\nThis press release includes certain forward-looking statements, including statements about business strategies and initiatives (including Project Athens and Cornerstone’s transformation plan) and their expected benefits, market potential, future financial performance and prospects and other matters that are not historical facts. These forward-looking statements involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements, including, without limitation, possible changes in market acceptance of new products or services, competitive issues, regulatory matters affecting our businesses, continued access to capital on terms acceptable to Qurate Retail, changes in law and government regulations, the availability of investment opportunities, general market conditions (including as a result of future public health crises), issues impacting the global supply chain and labor market and use of social media and influencers. These forward-looking statements speak only as of the date of this press release, and Qurate Retail expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in Qurate Retail's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Please refer to the publicly filed documents of Qurate Retail, including the most recent Forms 10-K and 10-Q, for additional information about Qurate Retail and about the risks and uncertainties related to Qurate Retail's business which may affect the statements made in this press release.\nNON-GAAP FINANCIAL MEASURES\nTo provide investors with additional information regarding our financial results, this press release includes a presentation of Adjusted OIBDA, which is a non-GAAP financial measure, for Qurate Retail, QVC (and certain of its subsidiaries) and Cornerstone together with a reconciliation to that entity or such businesses’ operating income, as determined under GAAP. Qurate Retail defines Adjusted OIBDA as operating income (loss) plus depreciation and amortization, stock-based compensation, and where applicable, separately identified impairments, litigation settlements, restructuring, penalties, acquisition-related costs, fire related costs, net (including Rocky Mount inventory losses), and (gains) losses on sale leaseback transactions. Further, this press release includes Adjusted OIBDA margin, which is also a non-GAAP financial measure. Qurate Retail defines Adjusted OIBDA margin as Adjusted OIBDA divided by revenue.\nQurate Retail believes Adjusted OIBDA is an important indicator of the operational strength and performance of its businesses by identifying those items that are not directly a reflection of each business’s performance or indicative of ongoing business trends. In addition, this measure allows management to view operating results and perform analytical comparisons and benchmarking between businesses and identify strategies to improve performance. Because Adjusted OIBDA is used as a measure of operating performance, Qurate Retail views operating income as the most directly comparable GAAP measure. Adjusted OIBDA is not meant to replace or supersede operating income or any other GAAP measure, but rather to supplement such GAAP measures in order to present investors with the same information that Qurate Retail's management considers in assessing the results of operations and performance of its assets. Please see the attached schedules for applicable reconciliations.\nThis press release also references certain financial metrics on a constant currency basis, which is a non-GAAP measure, for Qurate Retail. Constant currency financial metrics, as presented herein, are calculated by translating the current-year and prior-year reported amounts into comparable amounts using a single foreign exchange rate for each currency.\nQurate Retail believes constant currency financial metrics are an important indicator of financial performance, in particular for QVC, due to the translational impact of foreign currency fluctuations relating to its subsidiaries in the UK, Germany, Italy and Japan. We use constant currency financial metrics to provide a framework to assess how our businesses performed excluding the effects of foreign currency exchange fluctuations. Please see the financial tables at the beginning of this press release for a reconciliation of the impact of foreign currency fluctuations on revenue, operating income, Adjusted OIBDA and average selling price.\nSCHEDULE 1\nThe following table provides a reconciliation of Qurate Retail’s Adjusted OIBDA to its operating income (loss) calculated in accordance with GAAP for the three months ended September 30, 2023, December 31, 2023, March 31, 2024, June 30, 2024 and September 30, 2024, respectively.\n\n\n\nCONSOLIDATED OPERATING INCOME AND ADJUSTED OIBDA RECONCILIATION\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n(amounts in millions)\n\n3Q23\n\n4Q23\n\n1Q24\n\n2Q24\n\n3Q24\n\n\nQurate Retail Operating Income (Loss)\n\n$\n151\n\n$\n(103\n)\n\n$\n145\n\n\n$\n165\n\n$\n152\n\n\nDepreciation and amortization\n\n\n105\n\n\n98\n\n\n\n99\n\n\n\n96\n\n\n95\n\n\nStock compensation expense\n\n\n10\n\n\n13\n\n\n\n16\n\n\n\n3\n\n\n3\n\n\nRestructuring, penalty and fire related costs, net of (recoveries) (including Rocky Mount inventory losses)(a)\n\n\n19\n\n\n—\n\n\n\n—\n\n\n\n18\n\n\n—\n\n\nImpairment of intangible assets(b)\n\n\n—\n\n\n326\n\n\n\n—\n\n\n\n—\n\n\n—\n\n\n(Gains) losses on sale of assets and sale leaseback transactions(c)\n\n\n—\n\n\n6\n\n\n\n(1\n)\n\n\n—\n\n\n—\n\n\nQurate Retail Adjusted OIBDA\n\n$\n285\n\n$\n340\n\n\n$\n259\n\n\n$\n282\n\n$\n250\n\n\n\n\n\n\n________________________________________\n\n\na)\n\nIn the third quarter of 2023, QxH incurred (i) a $2 million gain on the sale of its Rocky Mount fulfillment center in February 2023 on proceeds released from escrow and (ii) $21 million of restructuring, penalty and fire-related costs. In the second quarter of 2024, Qurate Retail incurred $18 million of restructuring charges related to a plan to shift its information technology operating model. These items are included in operating income and excluded from Adjusted OIBDA.\n\n\nb)\n\nIn the fourth quarter of 2023, QxH recognized a $326 million non-cash impairment charge related to goodwill.\n\n\nc)\n\nIncludes a loss related to the sale leaseback of a German property in the fourth quarter of 2023 and a gain related to the sale leaseback of a German property in the first quarter of 2024.\n\n\n\nSCHEDULE 2\nThe following table provides a reconciliation of Adjusted OIBDA for QVC and Cornerstone to that entity or such businesses' operating income (loss) calculated in accordance with GAAP for the three months ended September 30, 2023, December 31, 2023, March 31, 2024, June 30, 2024 and September 30, 2024, respectively.\n\n\n\nSUBSIDIARY ADJUSTED OIBDA RECONCILIATION\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n(amounts in millions)\n\n3Q23\n\n4Q23\n\n1Q24\n\n2Q24\n\n3Q24\n\n\nQVC\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nOperating income (loss)\n\n$\n154\n\n$\n(113\n)\n\n$\n157\n\n\n$\n163\n\n$\n164\n\n\n\nDepreciation and amortization\n\n\n98\n\n\n91\n\n\n\n92\n\n\n\n88\n\n\n87\n\n\n\nStock compensation\n\n\n7\n\n\n10\n\n\n\n12\n\n\n\n2\n\n\n1\n\n\n\nRestructuring, penalty and fire related costs, net of (recoveries) (including Rocky Mount inventory losses)\n\n\n19\n\n\n—\n\n\n\n—\n\n\n\n18\n\n\n—\n\n\n\n(Gains) losses on sale of assets and sale leaseback transactions\n\n\n—\n\n\n6\n\n\n\n(1\n)\n\n\n—\n\n\n—\n\n\n\nImpairment of intangible assets\n\n\n—\n\n\n326\n\n\n\n—\n\n\n\n—\n\n\n—\n\n\n\nAdjusted OIBDA\n\n$\n278\n\n$\n320\n\n\n$\n260\n\n\n$\n271\n\n$\n252\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nQxH Adjusted OIBDA\n\n$\n201\n\n$\n221\n\n\n$\n185\n\n\n$\n194\n\n$\n182\n\n\n\nQVC International Adjusted OIBDA\n\n$\n77\n\n$\n99\n\n\n$\n75\n\n\n$\n77\n\n$\n70\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nCornerstone\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nOperating income (loss)\n\n$\n4\n\n$\n18\n\n\n$\n(3\n)\n\n$\n11\n\n$\n(2\n)\n\n\nDepreciation and amortization\n\n\n7\n\n\n7\n\n\n\n7\n\n\n\n8\n\n\n8\n\n\n\nStock compensation\n\n\n—\n\n\n2\n\n\n\n2\n\n\n\n—\n\n\n—\n\n\n\nRestructuring costs\n\n\n—\n\n\n—\n\n\n\n—\n\n\n\n—\n\n\n—\n\n\n\nAdjusted OIBDA\n\n$\n11\n\n$\n27\n\n\n$\n6\n\n\n$\n19\n\n$\n6\n\n\n\n\n\n\n\nQURATE RETAIL, INC.CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION(unaudited)\n\n\n\n\n\n\n\n\n\n\n\n\n\nSeptember 30,\n\nDecember 31,\n\n\n\n\n\n2024\n\n2023\n\n\n\n\n\namounts in millions\n\n\nAssets\n\n\n\n\n\n\n\nCurrent assets:\n\n\n\n\n\n\n\nCash and cash equivalents\n\n$\n873\n\n1,121\n\n\nTrade and other receivables, net of allowance for credit losses\n\n\n883\n\n1,308\n\n\nInventory, net\n\n\n1,299\n\n1,044\n\n\nOther current assets\n\n\n174\n\n209\n\n\nTotal current assets\n\n\n3,229\n\n3,682\n\n\nProperty and equipment, net\n\n\n500\n\n512\n\n\nIntangible assets not subject to amortization\n\n\n5,873\n\n5,862\n\n\nIntangible assets subject to amortization, net\n\n\n437\n\n526\n\n\nOperating lease right-of-use assets\n\n\n618\n\n635\n\n\nOther assets, at cost, net of accumulated amortization\n\n\n116\n\n151\n\n\nTotal assets\n\n$\n10,773\n\n11,368\n\n\nLiabilities and Equity\n\n\n\n\n\n\n\nCurrent liabilities:\n\n\n\n\n\n\n\nAccounts payable\n\n\n839\n\n895\n\n\nAccrued liabilities\n\n\n802\n\n983\n\n\nCurrent portion of debt\n\n\n874\n\n642\n\n\nOther current liabilities\n\n\n134\n\n97\n\n\nTotal current liabilities\n\n\n2,649\n\n2,617\n\n\nLong-term debt\n\n\n4,185\n\n4,698\n\n\nDeferred income tax liabilities\n\n\n1,443\n\n1,531\n\n\nPreferred stock\n\n\n1,272\n\n1,270\n\n\nOperating lease liabilities\n\n\n614\n\n615\n\n\nOther liabilities\n\n\n131\n\n148\n\n\nTotal liabilities\n\n\n10,294\n\n10,879\n\n\nEquity\n\n\n397\n\n385\n\n\nNon-controlling interests in equity of subsidiaries\n\n\n82\n\n104\n\n\nTotal liabilities and equity\n\n$\n10,773\n\n11,368\n\n\n\n\n\n\nQURATE RETAIL, INC.CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS INFORMATION(unaudited)\n\n\n\n\n\n\n\n\n\n\n\n\nThree months ended\n\n\n\n\nSeptember 30,\n\n\n\n\n2024\n\n2023\n\n\n\n\namounts in millions\n\n\nRevenue:\n\n\n\n\n\n\n\nTotal revenue, net\n\n$\n2,344\n\n\n2,479\n\n\n\n\n\n\n\n\n\n\n\nOperating costs and expenses:\n\n\n\n\n\n\n\nCost of goods sold (exclusive of depreciation shown separately below)\n\n\n1,517\n\n\n1,603\n\n\n\nOperating expense\n\n\n175\n\n\n186\n\n\n\nSelling, general and administrative, including stock-based compensation\n\n\n405\n\n\n415\n\n\n\nRestructuring, penalty and fire related costs, net of (recoveries)\n\n\n—\n\n\n19\n\n\n\nDepreciation and amortization\n\n\n95\n\n\n105\n\n\n\n\n\n\n2,192\n\n\n2,328\n\n\n\nOperating income (loss)\n\n\n152\n\n\n151\n\n\n\n\n\n\n\n\n\n\n\nOther income (expense):\n\n\n\n\n\n\n\nInterest expense\n\n\n(117\n)\n\n(119\n)\n\n\nDividend and interest income\n\n\n14\n\n\n14\n\n\n\nRealized and unrealized gains (losses) on financial instruments, net\n\n\n(36\n)\n\n(14\n)\n\n\nOther, net\n\n\n(13\n)\n\n1\n\n\n\n\n\n\n(152\n)\n\n(118\n)\n\n\nEarnings (loss) before income taxes\n\n\n—\n\n\n33\n\n\n\nIncome tax (expense) benefit\n\n\n(15\n)\n\n(21\n)\n\n\nNet earnings (loss)\n\n\n(15\n)\n\n12\n\n\n\nLess net earnings (loss) attributable to the noncontrolling interests\n\n\n8\n\n\n11\n\n\n\nNet earnings (loss) attributable to Qurate Retail, Inc. shareholders\n\n$\n(23\n)\n\n1\n\n\n\n\n\n\n\nQURATE RETAIL, INC.CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS INFORMATION(unaudited)\n\n\n\n\n\n\n\n\n\n\n\n\nNine months ended\n\n\n\n\nSeptember 30,\n\n\n\n\n2024\n\n2023\n\n\n\n\namounts in millions\n\n\nCASH FLOWS FROM OPERATING ACTIVITIES:\n\n\n\n\n\n\n\nNet earnings (loss)\n\n$\n25\n\n\n164\n\n\n\nAdjustments to reconcile net earnings (loss) to net cash provided by operating activities:\n\n\n\n\n\n\n\nDepreciation and amortization\n\n\n290\n\n\n309\n\n\n\nStock-based compensation\n\n\n22\n\n\n40\n\n\n\nRealized and unrealized (gains) losses on financial instruments, net\n\n\n53\n\n\n60\n\n\n\nGain on sale of assets and sale leaseback transactions\n\n\n(1\n)\n\n(119\n)\n\n\nGain on insurance proceeds, net of fire related costs\n\n\n—\n\n\n(225\n)\n\n\nInsurance proceeds received for operating expenses and business interruption losses\n\n\n—\n\n\n226\n\n\n\nLoss on disposition of Zulily\n\n\n—\n\n\n64\n\n\n\nDeferred income tax expense (benefit)\n\n\n(86\n)\n\n62\n\n\n\nOther, net\n\n\n11\n\n\n3\n\n\n\nChanges in operating assets and liabilities\n\n\n\n\n\n\n\nDecrease (increase) in accounts receivable\n\n\n411\n\n\n378\n\n\n\nDecrease (increase) in inventory\n\n\n(249\n)\n\n63\n\n\n\nDecrease (increase) in prepaid expenses and other assets\n\n\n71\n\n\n90\n\n\n\n(Decrease) increase in trade accounts payable\n\n\n(59\n)\n\n(103\n)\n\n\n(Decrease) increase in accrued and other liabilities\n\n\n(175\n)\n\n(410\n)\n\n\nNet cash provided (used) by operating activities\n\n\n313\n\n\n602\n\n\n\n\n\n\n\n\n\n\n\nCASH FLOWS FROM INVESTING ACTIVITIES:\n\n\n\n\n\n\n\nCapital expenditures\n\n\n(137\n)\n\n(151\n)\n\n\nExpenditures for television distribution rights\n\n\n(23\n)\n\n(111\n)\n\n\nCash proceeds from dispositions of investments\n\n\n7\n\n\n71\n\n\n\nCash paid for disposal of Zulily\n\n\n—\n\n\n(35\n)\n\n\nProceeds from sale of fixed assets\n\n\n6\n\n\n202\n\n\n\nInsurance proceeds received for fixed asset loss\n\n\n—\n\n\n54\n\n\n\nPayments for settlements of financial instruments\n\n\n—\n\n\n(179\n)\n\n\nProceeds from settlements of financial instruments\n\n\n—\n\n\n167\n\n\n\nOther investing activities, net\n\n\n(2\n)\n\n—\n\n\n\nNet cash provided (used) by investing activities\n\n\n(149\n)\n\n18\n\n\n\n\n\n\n\n\n\n\n\nCASH FLOWS FROM FINANCING ACTIVITIES:\n\n\n\n\n\n\n\nBorrowings of debt\n\n\n1,895\n\n\n1,137\n\n\n\nRepayments of debt\n\n\n(2,249\n)\n\n(1,893\n)\n\n\nDividends paid to noncontrolling interest\n\n\n(51\n)\n\n(35\n)\n\n\nDividends paid to common shareholders\n\n\n(4\n)\n\n(8\n)\n\n\nIndemnification agreement settlement\n\n\n—\n\n\n26\n\n\n\nOther financing activities, net\n\n\n(3\n)\n\n(3\n)\n\n\nNet cash provided (used) by financing activities\n\n\n(412\n)\n\n(776\n)\n\n\nEffect of foreign currency exchange rates on cash, cash equivalents and restricted cash\n\n\n2\n\n\n(17\n)\n\n\nNet increase (decrease) in cash, cash equivalents and restricted cash\n\n\n(246\n)\n\n(173\n)\n\n\nCash, cash equivalents and restricted cash at beginning of period\n\n\n1,136\n\n\n1,285\n\n\n\nCash, cash equivalents and restricted cash at end period\n\n$\n890\n\n\n1,112\n\n\n\n\nView source version on businesswire.com: https://www.businesswire.com/news/home/20241106593803/en/\nContacts\nShane Kleinstein (720) 875-5432","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; 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