QVC Group (QVCGA) investor relations material

Executive summary

• Revenue declined 7–9% year-over-year to $2.2–$2.24B in Q2 2025, with eCommerce accounting for 63% of total revenue and digital/social channels seeing over 30% growth and 100,000+ new TikTok Shop customers.

• Net loss was $2.21–$2.22B, driven by a $2.4B non-cash impairment at QxH; adjusted OIBDA fell 17–19% to $232M.

• Customer count declined 12% year-over-year, but TikTok Shop improved new customer count to +7% when included.

• The WIN strategy advanced, including HSN's transition to Studio Park, cost reduction, and digital transformation.

• Major restructuring included a 1-for-50 reverse stock split, suspension of preferred dividends, and consolidation of QVC and HSN operations.

Financial highlights

• QxH revenue declined 10.7–11%, with double-digit drops in most categories except electronics (+4%).

• QVC International revenue grew 3% in USD but fell 3–5% in constant currency; apparel up, other categories flat or down.

• Cornerstone revenue decreased 7.7–8% year-over-year, mainly due to softness in home furnishings.

• Adjusted OIBDA margin for QxH dropped to 8.9–10.8%, down 165–310 basis points year-over-year.

• Free cash flow for the first half of 2025 was $10M, down from $164M prior year; operating cash flow for six months was $26M.

Outlook and guidance

• Social and streaming revenue is expected to grow as a share of total revenue, with continued investment in digital platforms.

• Sourcing diversification aims for no single country to represent more than one-third of US sourced goods by year-end.

• Management expects continued inflationary pressures, economic uncertainty, and will monitor intangible asset values for further impairments.

• Projected 2025 capital expenditures between $100M and $125M, with positive cash flow from operations expected.

• Ongoing focus on cost control, capital structure improvement, and digital transformation to return to growth.