Newly named QVC Group, formerly Qurate Retail, announced an extension for its president and CEO, David Rawlinson, as it reported lower revenues and a big quarterly loss that attributed mainly to a non-cash impairment charge.
QVC Group revenue in the fourth quarter came in at $2.94 billion versus $3.14 billion in the year-prior period. Operating loss was $1.27 billion versus an operating loss of $103 million in the year-earlier period, the company maintained.
In the 2023 fourth quarter, QVC Groups’ QxH segment, including the QVC and HSN operations, incurred a $326 million non-cash impairment charge related to goodwill. Then, in the 2024 fourth quarter, QxH incurred a $1.5 billion non-cash impairment charge related to goodwill and trade names, QVC stated.
Revenues at QxH were $1.98 billion versus $2.16 billion in the year-past quarter while QVC International revenues were $680 million versus $679 million and Cornerstone revenue was $284 million versus $305 million. Operating results were, at QxH, a loss of $1.35 billion versus a loss of $193 million in the year-past period, as QVC International posted operating income of $98 million versus $80 million, and Cornerstone recorded a net loss of $4 million versus operating income of $18 million.
For the full year, revenue was $10.04 billion versus $10.61 billion in the year prior. The year-prior total excludes a $301 million contribution from Zulily, which Qurate spun off in 2023. Operating loss was $809 million versus operating income of $647 million in the year earlier. The year-earlier figure does not include a $57 million Zulily loss, the company pointed out.
QVC Group financial disclosures didn’t include net loss for the quarter but do so for the year, and they do not break out per share figures. The company has moved its stock from one NASDAQ market to another as QVC Group has faced issues of no-compliance with minimum price rules.
For the fiscal year, QVC Group company net loss was $1.29 billion versus a net loss of $145 million in 2023.
“2024 was an important year for the company and we achieved several milestones,” Rawlinson said. “We successfully completed Project Athens, resulting in a second straight year of Adjusted OIBDA growth as reported and enhanced operating discipline. We also reduced our debt levels to strengthen the balance sheet and grew our streaming business. We faced challenges in the second half of 2024, driven by heightened competition for viewership with the Olympics and the election, as well as a conservative consumer environment, both of which pressured our top line results and resulted in sales deleverage. In November, we announced a new three-year strategy focused on returning the business to growth. We are moving quickly to transform into a scaled player in live social shopping and believe we have the key assets to win in this market. To enable this strategy we are moving decisively, including consolidating headquarters and studio operations into West Chester, PA, re-naming the company to QVC Group, ramping up social media operations and continuing to actively manage our balance sheet.”
On the deal extending Rawlinson’s term,” Greg Maffei, executive chairman of QVC Group, said: “During David’s tenure, he has continued to lead with confidence and great vision, successfully architecting and delivering the company’s multiyear Project Athens initiative, which improved our profitability despite a challenging macro environment. The board and I are confident he can lead QVC Group through its next chapter as we focus on growth and transforming into a live social shopping company.”
