Qurate Retail turned to positive adjusted earnings in its fourth quarter versus an adjusted loss for the quarter in fiscal 2022, beating a Wall Street estimate.
As it released its financial results, the company announced that it had appointed Stacy Bowe president of its HSN business. Bowe (pictured above) most recently was U.S. chief merchandising officer for Qurate’s QVC operation. Rob Muller, previous president of HSN, is departing to focus on family and other pursuits, according to Qurate.
In the quarter, net loss was $273 million, or 70 cents per diluted share, versus a net loss of $51 million, or 13 cents per diluted share, in the year-before period, the company stated. Adjusted for one-time events, net income was $87 million, or 22 cents per diluted share, versus a net loss of $18 million, or five cents per diluted share, in the year-earlier quarter.
Qurate adjusted diluted earnings per share topped a MarketBeat-published analyst consensus estimate of 13 cents.
Total revenue was $3.14 billion versus $3.53 billion in the year-past quarter. Operating loss was $103 million versus operating income of $42 million in the year-prior period.
Revenue for the QxH business, including QVC and HSN, was $2.16 billion versus $2.26 billion in the quarter year over year, while revenue for QVC International was $679 million versus $666 million, and revenue for Cornerstone was $305 million versus $348 million. Operating loss for QxH was $193 million versus operating income of $28 million in the period year over year while operating income for QVC International was $80 million versus $85 million and operating income for Cornerstone was $18 million versus an operating loss of $14 million.
For the full year, net loss was $145 million, or 37 cents per diluted share, versus a net loss of $2.59 billion, or $6.83 per diluted share, in the year before, Qurate Retail reported. Adjusted net income was $94 million, or 24 cents per diluted share, versus $58 million, or 15 cents per diluted share, in the year earlier.
Total revenue was $10.92 billion versus $12.11 billion in the year past. Operating income was $590 million versus an operating loss of $2.04 billion in the year prior.
In a conference call, as transcribed by Seeking Alpha, David Rawlinson, Quarate Retail president and CEO, said, after evaluation of the business in 2002 and the launch of the strategic Project Athens plan, the company began initiatives meant to strengthen operations and improve results. He said Qurate Retail actions in 2023 resulted in some significant business highlights including the generation of strong adjusted operating income before depreciation and amortization growth in the year’s second half. Qurate Retail also improved its merchandise assortment with higher quality products, which resulted in better average selling prices and product margins. The company divested Zulily, which was negatively affecting profitability, increased free cash flow and reduced gross debt by approximately $1 billion.
Bill Wafford, Qurate CFO, said in the call that QxH home revenue slipped 2% primarily because of lower demand for home improvement and floor care merchandise, partially offset by growth in cleaning and fitness.
In the conference call, Rawlinson said, “Twenty twenty-three was a transformational year for Qurate Retail. We executed better on multiple fronts including merchandising, pricing strategy and inventory management, and these efforts yielded significant, positive results in the operational health and financial performance of the business. We increased free cash flow generation, reduced substantial debt and optimized our portfolio with the divesture of Zulily, and in the fourth quarter, we grew adjusted OIBDA by over 70% as reported. As we enter 2024, we expect to continue our momentum and drive improved results.
