Englewood, Colo. – Qurate Retail pointed to a challenged macro environment as it reported results for the second quarter, ended June 30.
At its QxH division – comprising the QVC U.S. and HSN – revenue declined 4% to $1.56 billion due to a 5% decrease in units shipped and lower shipping and handling revenue. The drop-off was partially offset by a 2% increase in average selling price.
QxH reported sales declines mainly in beauty, apparel and accessories, partially offset by growth in jewelry. Home performance was not cited. Operating income at the division tumbled 65% to $106 million.
Qurate’s sales decline was steepest at Cornerstone, which consists of Ballard Designs, Frontgate, Garnet Hill and Grandin Road.
Continued softness in the home sector led to a 14% drop in revenue, which came in at $273 million. Operating income fell 27% to $11 million.
At the company’s QVC International division, revenue declined 5% to $576 million. Operating income dropped 20% to $57 million.
“We remain focused on enhancing our merchandise assortment, improving product margins and diligently managing costs,” said David Rawlinson, president and CEO of Qurate Retail. “We are also excited about the opportunity in better serving our core customer of women over fifty as part of the QVC Age of Possibility campaign we launched in April.”
Total company revenue declined 5% to $2.41 billion for the quarter. That results excludes prior-year revenues from the Zulily brand, which Qurate sold off to an investment firm in May 2024. (Zulily is now owned by Beyond Inc.)
“While revenue was in line with overall discretionary retail, we expanded gross margins for the fifth consecutive quarter, generated $165 million in operating income, grew adjusted OIBDA for the fourth consecutive quarter and reduced net debt,” said Rawlinson.
Adjusted OIBDA bumped up 1% to $282, excluding Zulily comparisons. Corporate operating income dropped 57% to $165 million, excluding Zulily.