In a preview, Qurate Retail is updating its most recent public commentary regarding expected fourth-quarter results as the company, which operates QVC and HSN among other operations, experienced lower-than-anticipated sales in the fourth quarter.
- Qurate Retail revenue is down 8% to 9%.
- QxH revenue, combining QVC and HSN results, is down 6.5% to 7.5%.
The results are in constant currency. A tragic fire at the company’s QVC Rocky Mount fulfillment center in North Carolina on December 18, which resulted in one fatality as well as the shutdown of the facility, will further affect Qurate financials when calculated, the company noted, but insurance coverage will mitigate the financial impact.
“Revenue performance at QxH deteriorated throughout the fourth quarter, deviating from initial trends indicated on our third-quarter earnings conference call,” said David Rawlinson, Qurate president and CEO, in announcing the financial preview. “We are not pleased with these results and are actively taking steps to improve our long-term performance across business units. We are looking forward to a new leadership approach at QxH and Zulily and the ongoing development of our long-term strategy. We will share more details on our fourth quarter performance when we report earnings on February 25. Our hearts go out to our team members and the local community affected by the Rocky Mount fire, and we remain engaged in supporting the team members and residents. We are still assessing the impact of the tragic fire in coordination with our insurance carriers.”
