QVC Group Reports First Quarter 2025 Financial Results
“In the first quarter we faced a challenging market backdrop. While the impacts are being felt across retail, we are particularly challenged as linear television viewership continued to decline, and tariff volatility strongly impacted consumer sentiment in discretionary retail,” said David Rawlinson, President and CEO of QVC Group. “We continue to execute on our long-term strategy and are working to remain agile as we navigate these current headwinds. In particular, we believe social shopping is a transformative opportunity and are moving quickly to be a leader here. QVC’s agreement with TikTok is a first of its kind partnership for 24/7 content creation and is one example of the innovation we will continue to deploy to reinvent our business.”
First quarter 2025 headlines(2):
-
QVC Group revenue decreased
10% in both US Dollars and constant currency(3) -
Generated operating income of
$14 million -
Adjusted OIBDA(4) decreased
32% in US Dollars and decreased31% in constant currency -
QxH revenue decreased
11% -
QVC International revenue decreased
6% in US Dollars and decreased4% in constant currency -
Cornerstone revenue decreased
13%
Discussion of Results
Unless otherwise noted, the following discussion compares financial information for the three months ended March 31, 2025 to the same period in 2024.
FIRST QUARTER 2025 FINANCIAL RESULTS |
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(amounts in millions) |
1Q24 |
|
|
1Q25 |
|
|
% Change |
|
|
% Change
|
|
|||
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|||
QxH |
$ |
1,539 |
|
|
$ |
1,368 |
|
|
(11) |
% |
|
|
|
|
QVC International |
|
572 |
|
|
|
537 |
|
|
(6) |
% |
|
(4) |
% |
|
Cornerstone |
|
231 |
|
|
|
200 |
|
|
(13) |
% |
|
|
|
|
Total QVC Group Revenue |
|
2,342 |
|
|
|
2,105 |
|
|
(10) |
% |
|
(10) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Operating Income (Loss) |
|
|
|
|
|
|
|
|
|
|
|
|||
QxH(b) |
$ |
94 |
|
|
$ |
- |
|
|
NM |
|
|
|
|
|
QVC International(c) |
|
63 |
|
|
|
29 |
|
|
(54) |
% |
|
(51) |
% |
|
Cornerstone |
|
(3 |
) |
|
|
(11 |
) |
|
(267) |
% |
|
|
|
|
Unallocated corporate cost |
|
(9 |
) |
|
|
(4 |
) |
|
56 |
% |
|
|
|
|
Total QVC Group Operating Income (Loss) |
|
145 |
|
|
|
14 |
|
|
(90) |
% |
|
(89) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Adjusted OIBDA (Loss) |
|
|
|
|
|
|
|
|
|
|
|
|||
QxH(b) |
$ |
185 |
|
|
$ |
122 |
|
|
(34) |
% |
|
|
|
|
QVC International(c) |
|
75 |
|
|
|
63 |
|
|
(16) |
% |
|
(13) |
% |
|
Cornerstone |
|
6 |
|
|
|
(4 |
) |
|
NM |
|
|
|
|
|
Unallocated corporate cost |
|
(7 |
) |
|
|
(4 |
) |
|
43 |
% |
|
|
|
|
Total QVC Group Adjusted OIBDA |
$ |
259 |
|
|
$ |
177 |
|
|
(32) |
% |
|
(31) |
% |
|
a) |
For a definition of constant currency financial metrics, see the accompanying schedules. |
|
b) |
In the first quarter of 2025, QxH recorded |
|
c) |
In the first quarter of 2025, QVC International recorded |
QxH
QxH revenue declined primarily due to a
Operating income and Adjusted OIBDA margin(4) decreased mainly due to higher fulfillment costs and sales deleverage, partially offset by lower selling, general, and administrative expenses, favorable commission rates and higher product margins. Operating income was also impacted by a
QVC International
US Dollar denominated results were negatively impacted by exchange rate fluctuations due to the US Dollar weakening
QVC International’s constant currency revenue declined due to a
Operating income decreased in the first quarter mainly due to a
Cornerstone
Cornerstone revenue decreased due to continued softness in interior furniture, outdoor furniture, and decor in the home sector and for apparel at Garnet Hill.
Operating income and Adjusted OIBDA margin decreased primarily due to sales deleverage and higher administrative costs related to the previously announced transformation plan, partially offset by lower fulfilment and supply chain costs.
FIRST QUARTER 2025 SUPPLEMENTAL METRICS |
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|
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|
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|
|
|
|
|
(amounts in millions unless otherwise noted) |
|
1Q24 |
|
1Q25 |
|
% Change |
|
|
% Change
|
|
||
QxH |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Goods Sold % of Revenue |
|
|
65.4 |
% |
|
67.5 |
% |
210 |
bps |
|
|
|
Operating Income Margin (%)(b) |
|
|
6.1 |
% |
|
0.0 |
% |
(610) |
bps |
|
|
|
Adjusted OIBDA Margin (%)(b) |
|
|
12.0 |
% |
|
8.9 |
% |
(310) |
bps |
|
|
|
Average Selling Price |
|
$ |
53.60 |
|
$ |
52.63 |
|
(2) |
% |
|
|
|
Units Sold |
|
|
|
|
|
|
|
(10) |
% |
|
|
|
Return Rate(c) |
|
|
15.4 |
% |
|
15.3 |
% |
(10) |
bps |
|
|
|
eCommerce Revenue(d) |
|
$ |
958 |
|
$ |
867 |
|
(9) |
% |
|
|
|
eCommerce % of Total Revenue |
|
|
62.2 |
% |
|
63.4 |
% |
120 |
bps |
|
|
|
Mobile % of eCommerce Revenue(e) |
|
|
69.8 |
% |
|
71.3 |
% |
150 |
bps |
|
|
|
LTM Total Customers(f) |
|
|
8.0 |
|
|
7.4 |
|
(8) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
QVC International |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Goods Sold % of Revenue |
|
|
64.0 |
% |
|
64.8 |
% |
80 |
bps |
|
|
|
Operating Income Margin (%)(g) |
|
|
11.0 |
% |
|
5.4 |
% |
(560) |
bps |
|
|
|
Adjusted OIBDA Margin (%)(g) |
|
|
13.1 |
% |
|
11.7 |
% |
(140) |
bps |
|
|
|
Average Selling Price |
|
|
|
|
|
|
|
(3) |
% |
|
(1) |
% |
Units Sold |
|
|
|
|
|
|
|
(4) |
% |
|
|
|
Return Rate(c) |
|
|
19.2 |
% |
|
18.3 |
% |
(90) |
bps |
|
|
|
eCommerce Revenue(d) |
|
$ |
294 |
|
$ |
283 |
|
(4) |
% |
|
(1) |
% |
eCommerce % of Total Revenue |
|
|
51.4 |
% |
|
52.7 |
% |
130 |
bps |
|
|
|
Mobile % of eCommerce Revenue(e) |
|
|
68.8 |
% |
|
76.7 |
% |
790 |
bps |
|
|
|
LTM Total Customers(f) |
|
|
4.1 |
|
|
4.0 |
|
(2) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cornerstone |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Goods Sold % of Revenue |
|
|
59.7 |
% |
|
57.5 |
% |
(220) |
bps |
|
|
|
Operating Income Margin (%) |
|
|
(1.3) |
% |
|
(5.5) |
% |
(420) |
bps |
|
|
|
Adjusted OIBDA Margin (%) |
|
|
2.6 |
% |
|
(2.0) |
% |
NM |
|
|
|
|
eCommerce Revenue(d) |
|
$ |
175 |
|
$ |
150 |
|
(14) |
% |
|
|
|
eCommerce % of Total Revenue |
|
|
75.8 |
% |
|
75.0 |
% |
(80) |
bps |
|
|
|
| a) | For a definition of constant currency financial metrics, see the accompanying schedules. |
|
| b) |
In the first quarter of 2025, QxH recorded |
|
c) |
Measured as returned sales over gross shipped sales in US Dollars. |
|
d) |
Based on net revenue. |
|
e) |
|
Based on gross US Dollar orders. |
f) |
|
LTM: Last twelve months. |
g) |
In the first quarter of 2025, QVC International recorded |
FOOTNOTES
| 1) | QVC Group will discuss these headlines and other matters on QVC Group’s earnings conference call that will begin at 5:00 p.m. (E.T.) on May 7, 2025. For information regarding how to access the call, please see “Important Notice” later in this document. |
|
| 2) | Unless otherwise noted, highlights compare financial information for the three months ended March 31, 2025 to the same period in 2024. |
|
3) |
For a definition of constant currency financial metrics, see the accompanying schedules. Applicable reconciliations can be found in the financial tables at the beginning of this press release. |
|
4) |
For definitions and applicable reconciliations of Adjusted OIBDA and Adjusted OIBDA margin, see the accompanying schedules. |
NOTES
Cash and Debt
The following presentation is provided to separately identify cash and debt information.
(amounts in millions) |
|
12/31/2024 |
|
3/31/2025 |
|
||||
Cash and cash equivalents (GAAP) |
|
$ |
905 |
|
|
$ |
833 |
|
|
|
|
|
|
|
|
|
|
||
Debt: |
|
|
|
|
|
|
|
||
QVC senior secured notes(a) |
|
$ |
2,732 |
|
|
$ |
2,146 |
|
|
QVC senior secured bank credit facility |
|
|
1,195 |
|
|
|
1,850 |
|
|
Total Subsidiary Level Debt |
|
$ |
3,927 |
|
|
$ |
3,996 |
|
|
|
|
|
|
|
|
|
|
||
Senior notes(a) |
|
|
792 |
|
|
|
792 |
|
|
Senior exchangeable debentures(b) |
|
|
778 |
|
|
|
778 |
|
|
Corporate Level Debentures |
|
|
1,570 |
|
|
|
1,570 |
|
|
Total QVC Group Debt |
|
$ |
5,497 |
|
|
$ |
5,566 |
|
|
Unamortized discount, fair market value adjustment and deferred loan costs |
|
|
(529 |
) |
|
|
(566 |
) |
|
Total QVC Group Debt (GAAP) |
|
$ |
4,968 |
|
|
$ |
5,000 |
|
|
|
|
|
|
|
|
|
|
||
Other Financial Obligations: |
|
|
|
|
|
|
|
||
Preferred stock(c) |
|
$ |
1,272 |
|
|
$ |
1,272 |
|
|
|
|
|
|
|
|
|
|
||
QVC, Inc. leverage(d) |
|
|
3.3x |
|
|
3.7x |
|
||
| a) | Face amount of Senior Notes and Debentures with no reduction for the unamortized discount. |
|
| b) | Face amount of Senior Exchangeable Debentures with no adjustment for the fair market value adjustment. |
|
c) |
Preferred Stock has an |
|
d) |
As defined in QVC’s credit agreement. On April 1, 2025, Cornerstone was removed as a borrower and will not be included in future calculations of QVC, Inc.’s leverage under QVC’s credit agreement. QVC, Inc.’s leverage is presented on an adjusted basis assuming Cornerstone was removed from the covenant calculations under the QVC’s bank credit facility for the periods ended December 31, 2024 and March 31, 2025. |
Cash at QVC Group decreased
QVC’s bank credit facility has
As of March 31, 2025, QVC’s consolidated leverage ratio (as calculated under QVC’s senior secured notes) was greater than 3.5x and as a result QVC is restricted in its ability to make unlimited dividends or other restricted payments. Dividends made by QVC to service the principal and interest of indebtedness of its parent entities, as well as payments made by QVC to QVC Group under an intercompany tax sharing agreement in respect of certain tax obligations of QVC and its subsidiaries, are permitted under the bond indenture and credit agreement.
QVC Group is in compliance with all debt covenants as of March 31, 2025.
Important Notice: QVC Group, Inc. (Nasdaq: QVCGA, QVCGB, QVCGP) will discuss QVC Group’s earnings release on a conference call which will begin at 5:00 p.m. (E.T.) on May 7, 2025. The call can be accessed by dialing (877) 704-4234 or (215) 268-9904, passcode 13748876, at least 10 minutes prior to the start time. The call will also be broadcast live across the Internet and archived on our website. To access the webcast go to https://investors.qvcgrp.com/investors/news-events/ir-calendar. Links to this press release and replays of the call will also be available on QVC Group’s website.
This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about business strategies and initiatives (including our WIN strategy) and their expected benefits, market potential and headwinds (including the impact of tariff volatility), future financial performance and prospects, and other matters that are not historical facts. These forward-looking statements involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements, including, without limitation, possible changes in market acceptance of new products or services, competitive issues, regulatory matters affecting our businesses, continued access to capital on terms acceptable to QVC Group, changes in law and government regulations, the availability of investment opportunities, general market conditions (including as a result of tariff volatility), issues impacting the global supply chain and labor market and use of social media and influencers. These forward-looking statements speak only as of the date of this press release, and QVC Group expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in QVC Group's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Please refer to the publicly filed documents of QVC Group, including the most recent Forms 10-K and 10-Q, for additional information about QVC Group and about the risks and uncertainties related to QVC Group's business, which may affect the statements made in this press release.
NON-GAAP FINANCIAL MEASURES
To provide investors with additional information regarding our financial results, this press release includes a presentation of Adjusted OIBDA, which is a non-GAAP financial measure, for QVC Group, QVC and Cornerstone together with a reconciliation to that entity or such businesses’ operating income, as determined under GAAP. QVC Group defines Adjusted OIBDA as operating income (loss) plus depreciation and amortization, stock-based compensation, and where applicable, separately identified impairments, litigation settlements, restructuring, acquisition-related costs, and (gains) losses on sale leaseback transactions. Further, this press release includes Adjusted OIBDA margin, which is also a non-GAAP financial measure. QVC Group defines Adjusted OIBDA margin as Adjusted OIBDA divided by revenue.
QVC Group believes Adjusted OIBDA is an important indicator of the operational strength and performance of its businesses by identifying those items that are not directly a reflection of each business’s performance or indicative of ongoing business trends. In addition, this measure allows management to view operating results and perform analytical comparisons and benchmarking between businesses and identify strategies to improve performance. Because Adjusted OIBDA is used as a measure of operating performance, QVC Group views operating income as the most directly comparable GAAP measure. Adjusted OIBDA is not meant to replace or supersede operating income or any other GAAP measure, but rather to supplement such GAAP measures in order to present investors with the same information that QVC Group 's management considers in assessing the results of operations and performance of its assets. Please see the attached schedules for applicable reconciliations.
This press release also references certain financial metrics on a constant currency basis, which is a non-GAAP measure, for QVC Group. Constant currency financial metrics, as presented herein, are calculated by translating the current-year and prior-year reported amounts into comparable amounts using a single foreign exchange rate for each currency.
QVC Group believes constant currency financial metrics are an important indicator of financial performance, in particular for QVC, due to the translational impact of foreign currency fluctuations relating to its subsidiaries in the
SCHEDULE 1
The following table provides a reconciliation of QVC Group’s Adjusted OIBDA to its operating income (loss) calculated in accordance with GAAP for the three months ended March 31, 2024, June 30, 2024, September 30, 2024, December 31, 2024 and March 31, 2025, respectively.
CONSOLIDATED OPERATING INCOME AND ADJUSTED OIBDA RECONCILIATION |
|||||||||||||||||
(amounts in millions) |
|
1Q24 |
|
|
2Q24 |
|
3Q24 |
|
4Q24 |
|
|
1Q25 |
|||||
QVC Group Operating Income (Loss) |
|
$ |
145 |
|
|
$ |
165 |
|
$ |
152 |
|
$ |
(1,271 |
) |
|
$ |
14 |
Depreciation and amortization |
|
|
99 |
|
|
|
96 |
|
|
95 |
|
|
93 |
|
|
|
102 |
Stock compensation expense |
|
|
16 |
|
|
|
3 |
|
|
3 |
|
|
10 |
|
|
|
4 |
Restructuring costs(a) |
|
|
— |
|
|
|
18 |
|
|
— |
|
|
— |
|
|
|
57 |
Impairment of intangible assets(b) |
|
|
— |
|
|
|
— |
|
|
— |
|
|
1,480 |
|
|
|
— |
Gain on sale leaseback transaction(c) |
|
|
(1 |
) |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
QVC Group Adjusted OIBDA |
|
$ |
259 |
|
|
$ |
282 |
|
$ |
250 |
|
$ |
312 |
|
|
$ |
177 |
| a) |
In the second quarter of 2024, QVC Group incurred |
|
| b) |
Includes a |
|
| c) | Includes a gain related to the sale leaseback of a German property in the first quarter of 2024. |
SCHEDULE 2
The following table provides a reconciliation of Adjusted OIBDA for QVC and Cornerstone to that entity or such businesses' operating income (loss) calculated in accordance with GAAP for the three months ended March 31, 2024, June 30, 2024, September 30, 2024, December 31, 2024 and March 31, 2025, respectively.
SUBSIDIARY ADJUSTED OIBDA RECONCILIATION |
|||||||||||||||||||
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|
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|
||||
(amounts in millions) |
|
1Q24 |
|
|
2Q24 |
|
3Q24 |
|
|
4Q24 |
|
|
1Q25 |
|
|||||
QVC |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating income (loss) |
|
$ |
157 |
|
|
$ |
163 |
|
$ |
164 |
|
|
$ |
(1,254 |
) |
|
$ |
29 |
|
Depreciation and amortization |
|
|
92 |
|
|
|
88 |
|
|
87 |
|
|
|
84 |
|
|
|
95 |
|
Stock compensation |
|
|
12 |
|
|
|
2 |
|
|
1 |
|
|
|
5 |
|
|
|
4 |
|
Restructuring costs |
|
|
— |
|
|
|
18 |
|
|
— |
|
|
|
— |
|
|
|
57 |
|
Gain on sale leaseback transaction |
|
|
(1 |
) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Impairment of intangible assets |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
1,480 |
|
|
|
— |
|
Adjusted OIBDA |
|
$ |
260 |
|
|
$ |
271 |
|
$ |
252 |
|
|
$ |
315 |
|
|
$ |
185 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
QxH Adjusted OIBDA |
|
$ |
185 |
|
|
$ |
194 |
|
$ |
182 |
|
|
$ |
204 |
|
|
$ |
122 |
|
QVC International Adjusted OIBDA |
|
$ |
75 |
|
|
$ |
77 |
|
$ |
70 |
|
|
$ |
111 |
|
|
$ |
63 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cornerstone |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating income (loss) |
|
$ |
(3 |
) |
|
$ |
11 |
|
$ |
(2 |
) |
|
$ |
(4 |
) |
|
$ |
(11 |
) |
Depreciation and amortization |
|
|
7 |
|
|
|
8 |
|
|
8 |
|
|
|
9 |
|
|
|
7 |
|
Stock compensation |
|
|
2 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Adjusted OIBDA |
|
$ |
6 |
|
|
$ |
19 |
|
$ |
6 |
|
|
$ |
5 |
|
|
$ |
(4 |
) |
QVC GROUP, INC. |
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CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION |
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(unaudited) |
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March 31, |
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December 31, |
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2025 |
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2024 |
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amounts in millions |
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Assets |
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Current assets: |
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
833 |
|
|
905 |
|
Trade and other receivables, net of allowance for credit losses |
|
|
844 |
|
|
1,143 |
|
Inventories |
|
|
1,184 |
|
|
1,061 |
|
Other current assets |
|
|
165 |
|
|
190 |
|
Total current assets |
|
|
3,026 |
|
|
3,299 |
|
Property and equipment, net |
|
|
478 |
|
|
502 |
|
Intangible assets not subject to amortization |
|
|
4,363 |
|
|
4,337 |
|
Intangible assets subject to amortization, net |
|
|
419 |
|
|
402 |
|
Operating lease right-of-use assets |
|
|
589 |
|
|
600 |
|
Other assets, at cost, net of accumulated amortization |
|
|
106 |
|
|
103 |
|
Total assets |
|
$ |
8,981 |
|
|
9,243 |
|
Liabilities and Equity |
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
||
Accounts payable |
|
|
676 |
|
|
776 |
|
Accrued liabilities |
|
|
811 |
|
|
953 |
|
Current portion of debt |
|
|
242 |
|
|
867 |
|
Other current liabilities |
|
|
89 |
|
|
128 |
|
Total current liabilities |
|
|
1,818 |
|
|
2,724 |
|
Long-term debt |
|
|
4,758 |
|
|
4,101 |
|
Deferred income tax liabilities |
|
|
1,321 |
|
|
1,313 |
|
Preferred stock |
|
|
1,272 |
|
|
1,272 |
|
Operating lease liabilities |
|
|
592 |
|
|
598 |
|
Other liabilities |
|
|
113 |
|
|
120 |
|
Total liabilities |
|
|
9,874 |
|
|
10,128 |
|
Equity |
|
|
(981 |
) |
|
(971 |
) |
Non-controlling interests in equity of subsidiaries |
|
|
88 |
|
|
86 |
|
Total liabilities and equity |
|
$ |
8,981 |
|
|
9,243 |
|
QVC GROUP, INC. |
|||||||
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS INFORMATION |
|||||||
(unaudited) |
|||||||
|
|
|
|
|
|
||
|
|
Three months ended |
|||||
|
|
March 31, |
|||||
|
|
2025 |
|
2024 |
|||
|
|
amounts in millions |
|||||
Revenue: |
|
|
|
|
|
||
Total revenue, net |
|
$ |
2,105 |
|
|
2,342 |
|
|
|
|
|
|
|
||
Operating costs and expenses: |
|
|
|
|
|
||
Cost of goods sold (exclusive of depreciation and amortization shown separately below) |
|
|
1,386 |
|
|
1,511 |
|
Operating expense |
|
|
163 |
|
|
180 |
|
Selling, general and administrative, including stock-based compensation |
|
|
383 |
|
|
408 |
|
Depreciation and amortization |
|
|
102 |
|
|
99 |
|
Restructuring costs |
|
|
57 |
|
|
— |
|
Gain on sale leaseback transaction |
|
|
— |
|
|
(1 |
) |
|
|
|
2,091 |
|
|
2,197 |
|
Operating income (loss) |
|
|
14 |
|
|
145 |
|
|
|
|
|
|
|
||
Other income (expense): |
|
|
|
|
|
||
Interest expense |
|
|
(112 |
) |
|
(117 |
) |
Dividend and interest income |
|
|
8 |
|
|
12 |
|
Realized and unrealized gains (losses) on financial instruments, net |
|
|
(15 |
) |
|
(7 |
) |
Other, net |
|
|
2 |
|
|
(2 |
) |
|
|
|
(117 |
) |
|
(114 |
) |
Earnings (loss) before income taxes |
|
|
(103 |
) |
|
31 |
|
Income tax (expense) benefit |
|
|
12 |
|
|
(23 |
) |
Net earnings (loss) |
|
|
(91 |
) |
|
8 |
|
Less net earnings (loss) attributable to the noncontrolling interests |
|
|
9 |
|
|
9 |
|
Net earnings (loss) attributable to QVC Group, Inc. shareholders |
|
$ |
(100 |
) |
|
(1 |
) |
QVC GROUP, INC. |
|||||||||
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS INFORMATION |
|||||||||
(unaudited) |
|||||||||
|
|
|
|
|
|
|
|
||
|
|
Three months ended |
|
||||||
|
|
March 31, |
|
||||||
|
|
2025 |
|
2024 |
|
||||
|
|
amounts in millions |
|
||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
||
Net earnings (loss) |
|
$ |
(91 |
) |
|
8 |
|
|
|
Adjustments to reconcile net earnings (loss) to net cash provided (used) by operating activities: |
|
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
102 |
|
|
99 |
|
|
|
Stock-based compensation |
|
|
4 |
|
|
16 |
|
|
|
Realized and unrealized (gains) losses on financial instruments, net |
|
|
15 |
|
|
7 |
|
|
|
Gain on sale leaseback transaction |
|
|
— |
|
|
(1 |
) |
|
|
Deferred income tax expense (benefit) |
|
|
(5 |
) |
|
(2 |
) |
|
|
Other, net |
|
|
5 |
|
|
4 |
|
|
|
Changes in operating assets and liabilities |
|
|
|
|
|
|
|
||
Decrease (increase) in trade and other receivables |
|
|
296 |
|
|
313 |
|
|
|
Decrease (increase) in inventory |
|
|
(115 |
) |
|
(94 |
) |
|
|
Decrease (increase) in other current assets |
|
|
41 |
|
|
45 |
|
|
|
(Decrease) increase in accounts payable |
|
|
(109 |
) |
|
(101 |
) |
|
|
(Decrease) increase in accrued and other liabilities |
|
|
(203 |
) |
|
(268 |
) |
|
|
Net cash provided (used) by operating activities |
|
|
(60 |
) |
|
26 |
|
|
|
|
|
|
|
|
|
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
||
Capital expenditures |
|
|
(34 |
) |
|
(40 |
) |
|
|
Expenditures for television distribution rights |
|
|
(43 |
) |
|
(2 |
) |
|
|
Cash proceeds from dispositions of investments |
|
|
— |
|
|
6 |
|
|
|
Proceeds from sale of fixed assets |
|
|
— |
|
|
6 |
|
|
|
Other investing activities, net |
|
|
(1 |
) |
|
(1 |
) |
|
|
Net cash provided (used) by investing activities |
|
|
(78 |
) |
|
(31 |
) |
|
|
|
|
|
|
|
|
|
|
||
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
||
Borrowings of debt |
|
|
866 |
|
|
1,570 |
|
|
|
Repayments of debt |
|
|
(797 |
) |
|
(1,555 |
) |
|
|
Dividends paid to noncontrolling interest |
|
|
(11 |
) |
|
(11 |
) |
|
|
Dividends paid to common shareholders |
|
|
(1 |
) |
|
(4 |
) |
|
|
Other financing activities, net |
|
|
(2 |
) |
|
(2 |
) |
|
|
Net cash provided (used) by financing activities |
|
|
55 |
|
|
(2 |
) |
|
|
Effect of foreign currency exchange rates on cash, cash equivalents and restricted cash |
|
|
12 |
|
|
(12 |
) |
|
|
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
|
(71 |
) |
|
(19 |
) |
|
|
Cash, cash equivalents and restricted cash at beginning of period |
|
|
923 |
|
|
1,136 |
|
|
|
Cash, cash equivalents and restricted cash at end period |
|
$ |
852 |
|
|
1,117 |
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20250506176122/en/
Source: QVC Group, Inc.
