Qurate Retail, Inc. (Nasdaq: QRTEA, QRTEB, QRTEP) today reported third quarter 2022 results.
“An intensely promotional environment and weakened consumer sentiment impacted our third quarter performance, along with other retail players, amplified by continued downstream impacts from the December 2021 fire at our former Rocky Mount, NC fulfillment center and our actions to move excess inventory,” said David Rawlinson II, President and CEO of Qurate Retail, Inc.
“Despite soft results, we maintained our focus on progressing the five pillars of Project Athens, our three-year strategic plan to re-establish revenue growth, adjusted OIBDA margin expansion and incremental cash flow generation. We are augmenting our team and attracting executive leadership talent with top tier experience who will help drive this transformation, including a Chief Operating Officer, President of Streaming Operations, a Chief Merchandising Officer for QVC US and a Chief People Officer.”
Third quarter 2022 operating results:
- Qurate Retail revenue decreased 13% to $2.7 billion
- In constant currency(2) revenue decreased 9%
- eCommerce revenue decreased 13% to $1.7 billion or 62% of total revenue
- Qurate Retail reported diluted EPS of $(7.21), including impact of non-cash impairment recognized at QxH and Zulily related to tradenames and goodwill (additional detail below)
- Adjusted diluted EPS(3) of $(0.08)
- QxH revenue decreased 8%
- QVC International revenue decreased 21%
- In constant currency, revenue decreased 5%
- Zulily revenue decreased 39%
- Cornerstone revenue increased 8%
Other business headlines:
- Completed sale and leaseback of five US properties in July for proceeds of $443 million
- Entered into agreement for sale and leaseback of UK and Germany fulfillment centers for gross consideration of approximately £68 million and €97 million, respectively; expected to close first quarter 2023
- Cash proceeds expected to be used to repay debt
- Received $180 million of insurance proceeds in third quarter related to Rocky Mount, NC fulfillment center fire; $280 million of insurance proceeds received year-to-date.
