As it pursues a turnaround, Qurate Retail turned to an adjusted profit in the first quarter although revenues trailed a Wall Street estimate.
Net loss was $1 million, or zero per diluted share, versus net income of $20 million, or five cents per diluted share, in the year-before quarter. Adjusted for one-time events, net income was $17 million, or four cents per diluted share, versus an adjusted net loss of $20 million, or five cents per diluted share, in the year-previous period, the company reported
An analyst estimate published by Yahoo Finance called for earning of four cents per adjusted diluted share and revenue of $2.4 billion.
Revenue was $2.34 billion versus $2.64 billion in the year-earlier period. Revenue at the QxH segment, including QVC and HSN, was $1.54 billion versus $1.6 billion in the year-prior period while QVC International came in at $572 million versus $592 million and Cornerstone came in at $231 million versus $259 million year over year.
Operating income was $145 million compared with $176 million in the year-past period.
QxH revenue slipped primarily because of a 4% decrease in units shipped, partially offset by favorable returns and higher shipping and handling revenue. The segment reported sales declines in home and apparel partially offset by growth in accessories and jewelry. At QVC International, exchange rate fluctuations depressed U.S. dollar denominated results. Cornerstone revenue decreased due to continued softness in certain home categories and apparel at the Garnet Hill operation.
In announcing the financial results, David Rawlinson, Qurate Retail president and CEO, said, “Our first quarter results demonstrate the continued momentum in our turnaround. We expanded gross margins for the fourth consecutive quarter, increased adjusted OIBDA over 40% as reported for the third consecutive quarter of growth, and improved free cash flow year-over-year for the fifth consecutive quarter. We are successfully delivering on our transformation initiatives to reduce costs and improve product margins while prioritizing enhanced merchandise, brand launches and celebrity partnerships, which are hallmarks of the QVC and HSN brands. We are focused on achieving our stated objectives throughout 2024 and positioning the business for sustainable future growth. In April, we launched our Age of Possibility campaign (pictured above), where we brought together a group of Quintessential 50 ambassadors including Billie Jean King, Patti LaBelle, Queen Latifah, Martha Stewart and many other inspiring women to tell their stories and celebrate our core customer of women over 50.”
