Qurate Retail, Inc. (QRTEB) Bundle
A Brief History of Qurate Retail, Inc.
Qurate Retail, Inc. has undergone significant transformations in recent years, particularly as of 2024. The company, which operates several well-known brands including QVC and HSN, has navigated a complex retail landscape marked by changing consumer preferences and economic pressures.
Financial Performance Overview
As of September 30, 2024, Qurate Retail reported consolidated revenues of $2.344 billion for the third quarter, a decrease of 5.4% from $2.479 billion in the same period of 2023. For the nine months ended September 30, 2024, revenues totaled $7.093 billion, down from $7.772 billion year-over-year, reflecting an 8.7% decline.
| Period | Revenue (in millions) | Operating Income (in millions) | Net Earnings (in millions) |
|---|---|---|---|
| Q3 2024 | $2,344 | $152 | $(15) |
| Q3 2023 | $2,479 | $151 | $12 |
| 9M 2024 | $7,093 | $462 | $25 |
| 9M 2023 | $7,772 | $693 | $164 |
Cash Flow and Capital Structure
For the nine months ended September 30, 2024, Qurate Retail generated $313 million in cash from operating activities, a decrease from $602 million in the prior year. The company reported cash used in investing activities of $(149) million compared to $18 million in 2023. Financing activities resulted in a net cash outflow of $(412) million, down from $(776) million in the previous year.
| Cash Flow Activity | 9M 2024 (in millions) | 9M 2023 (in millions) |
|---|---|---|
| Operating Activities | $313 | $602 |
| Investing Activities | $(149) | $18 |
| Financing Activities | $(412) | $(776) |
Debt and Liquidity Position
As of September 30, 2024, Qurate Retail's consolidated leverage ratio was above 3.5 to 1.0, restricting the company's ability to make dividends or other restricted payments under its senior secured notes. The total cash and cash equivalents amounted to $873 million, with significant portions held in U.S. Treasury securities and other highly rated investments. The company also had a borrowing capacity of $1.753 billion under its credit facility.
| Liquidity Position | Amount (in millions) |
|---|---|
| Cash and Cash Equivalents | $873 |
| Borrowing Capacity | $1,753 |
Operational Challenges and Strategic Initiatives
Qurate Retail has faced operational challenges, including a decline in net earnings, which reported losses of $15 million for Q3 2024 compared to earnings of $12 million in Q3 2023. The primary drivers for this decline include a decrease in average selling prices (ASP) and units shipped, particularly within the home product categories.
The company has initiated several strategic initiatives aimed at revitalizing its performance, including cost-reduction strategies and a focus on enhancing its digital presence to better connect with consumers in a rapidly evolving retail environment.
Market Position and Future Outlook
Despite the challenges, Qurate Retail continues to leverage its strong brand portfolio and customer loyalty. The company aims to adapt to market trends and consumer demands while maintaining a solid operational foundation to support future growth.
A Who Owns Qurate Retail, Inc. (QRTEB)
Major Shareholders
As of 2024, Qurate Retail, Inc. (QRTEB) has a diverse ownership structure comprising institutional investors, individual shareholders, and company executives. The major shareholders include:
| Shareholder Type | Name | Ownership Percentage |
|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 6.5% |
| Institutional Investor | BlackRock, Inc. | 6.0% |
| Institutional Investor | State Street Corporation | 5.2% |
| Individual Investor | Gregory B. Maffei (CEO) | 4.1% |
| Individual Investor | John C. Malone (Chairman) | 24.0% |
| Other | Other Institutional Investors | 30.0% |
Institutional Ownership
As of September 30, 2024, the institutional ownership of Qurate Retail, Inc. is as follows:
| Institution | Shares Held (millions) | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 25.9 | 6.5% |
| BlackRock, Inc. | 24.0 | 6.0% |
| State Street Corporation | 20.5 | 5.2% |
| Invesco Ltd. | 18.7 | 4.7% |
| Wellington Management Group | 16.3 | 4.1% |
Executive Ownership
The following table outlines the ownership of Qurate Retail’s executive team as of September 30, 2024:
| Executive | Position | Shares Owned (millions) | Percentage of Total Shares |
|---|---|---|---|
| Gregory B. Maffei | CEO | 16.2 | 4.1% |
| John C. Malone | Chairman | 93.0 | 24.0% |
| Other Executives | Various | 10.5 | 2.6% |
Shareholder Composition
As of 2024, the composition of Qurate Retail, Inc.'s shareholders is as follows:
| Shareholder Group | Percentage of Ownership |
|---|---|
| Institutional Investors | 51.0% |
| Individual Investors | 15.0% |
| Company Executives and Directors | 30.0% |
| Others | 4.0% |
Recent Changes in Ownership
Recent changes in ownership patterns indicate a slight increase in institutional holdings, with notable transactions during the past year:
- In Q1 2024, The Vanguard Group increased its stake by 1.5%.
- BlackRock sold off 0.5% of its shares in Q2 2024.
- John C. Malone maintained his stake without significant changes.
Conclusion on Ownership Trends
Ownership of Qurate Retail, Inc. remains concentrated among a few key shareholders, with institutional investors holding a significant portion of the company's equity. The trend shows a growing institutional interest, which may influence future corporate governance and strategic decisions.
Qurate Retail, Inc. (QRTEB) Mission Statement
Mission Statement Overview
The mission of Qurate Retail, Inc. is to be the leading retailer in the interactive shopping space, leveraging innovative technology and personalized customer experiences to enhance connectivity with consumers. The company aims to provide a broad selection of products through engaging and entertaining shopping formats.
Core Values
- Customer Centricity: Prioritizing customer needs and preferences in every aspect of operations.
- Innovation: Continuously innovating in product offerings and shopping experiences.
- Integrity: Conducting business ethically and transparently.
- Collaboration: Fostering teamwork and partnerships to enhance business outcomes.
Financial Performance Indicators (2024)
As of September 30, 2024, Qurate Retail reported the following financial metrics:
| Metric | Value (in millions) |
|---|---|
| Net Revenue | $2,344 |
| Consolidated Net Revenue Change (YoY) | Decrease of 5.4% |
| Operating Income | $152 |
| Net Earnings (Loss) | $(15) |
| Cash and Cash Equivalents | $873 |
Business Segments
Qurate Retail operates through several key segments, each contributing to its overall mission:
| Segment | Net Revenue (9 months ended Sept 30, 2024, in millions) | Net Revenue Change (YoY) |
|---|---|---|
| QxH | $4,618 | Decrease of 4.5% |
| QVC International | $1,719 | Decrease of 3.2% |
| CBI | $756 | Decrease of 12.1% |
| Corporate and Other | $0 | N/A |
Customer Engagement Strategies
Qurate Retail employs various strategies to enhance customer engagement:
- Interactive Shopping: Utilizing live video and social media to create an interactive shopping environment.
- Personalization: Leveraging data analytics to personalize shopping experiences based on consumer behavior.
- Cross-Platform Integration: Ensuring a seamless shopping experience across TV, online, and mobile platforms.
Recent Developments
Recent initiatives include:
- Debt Management: Net debt repayments of $354 million during the nine months ended September 30, 2024.
- Capital Expenditures: Investments of $137 million aimed at enhancing operational efficiencies.
- Dividends Paid: $51 million in dividends to noncontrolling interests.
Stock Performance
The stock performance of Qurate Retail as of September 30, 2024, reflects significant market activity:
| Performance Metric | Value |
|---|---|
| Basic EPS (for the nine months ended Sept 30, 2024) | $(0.01) |
| Basic WASO (Weighted Average Shares Outstanding) | 399 million |
| Cash Flow from Operating Activities | $313 million |
How Qurate Retail, Inc. (QRTEB) Works
Business Overview
Qurate Retail, Inc. operates as a retailer of consumer products through various platforms, predominantly via television and online. The company encompasses several segments, with its primary focus on QxH (QVC), QVC International, and CBI (Cornerstone Brands). Qurate Retail's business model leverages interactive shopping experiences, engaging customers through live programming and digital platforms.
Financial Performance (as of September 30, 2024)
For the three months ended September 30, 2024, Qurate Retail reported consolidated revenues of $2.344 billion, a decrease of 5.4% from $2.479 billion in the same period in 2023. For the nine months ended September 30, 2024, total revenue was $7.093 billion, down from $7.772 billion in the prior year, representing an 8.7% decline.
| Segment | Three Months Ended Sept 30, 2024 (in millions) | Three Months Ended Sept 30, 2023 (in millions) | Nine Months Ended Sept 30, 2024 (in millions) | Nine Months Ended Sept 30, 2023 (in millions) |
|---|---|---|---|---|
| QxH | $1,521 | $1,617 | $4,618 | $4,836 |
| QVC International | $571 | $577 | $1,719 | $1,775 |
| CBI | $252 | $285 | $756 | $860 |
| Corporate and Other | $0 | $0 | $0 | $301 |
| Total Consolidated | $2,344 | $2,479 | $7,093 | $7,772 |
Operating Income
Operating income for the three months ended September 30, 2024, was $152 million, slightly up from $151 million in the prior year. However, for the nine months ended September 30, 2024, operating income decreased to $462 million from $693 million in 2023.
Adjusted OIBDA
Adjusted OIBDA for Qurate Retail was reported at $250 million for the three months ended September 30, 2024, down from $285 million in the same period in 2023. For the nine months, Adjusted OIBDA was $791 million compared to $734 million in 2023.
| Segment | Three Months Ended Sept 30, 2024 (in millions) | Three Months Ended Sept 30, 2023 (in millions) | Nine Months Ended Sept 30, 2024 (in millions) | Nine Months Ended Sept 30, 2023 (in millions) |
|---|---|---|---|---|
| QxH | $182 | $201 | $561 | $525 |
| QVC International | $70 | $77 | $222 | $226 |
| CBI | $6 | $11 | $31 | $40 |
| Corporate and Other | ($8) | ($4) | ($23) | ($57) |
| Total Consolidated | $250 | $285 | $791 | $734 |
Cost of Goods Sold and Operating Expenses
For Qurate Retail, the cost of goods sold (COGS) as a percentage of net revenue was 65.3% for the three months ended September 30, 2024, compared to 64.9% in the same period of 2023. For the nine months, COGS was 64.9%, down from 66.1% in the previous year.
Operating expenses were reported at 7.9% of net revenue for both the three and nine months ended September 30, 2024, consistent with the previous year's percentages.
Net Earnings and Losses
Qurate Retail experienced a net loss of $15 million for the three months ended September 30, 2024, compared to net earnings of $12 million in the same period in 2023. For the nine months, net earnings were $25 million, down from $164 million in the previous year.
| Period | Net Earnings (Loss) (in millions) |
|---|---|
| Three Months Ended Sept 30, 2024 | ($15) |
| Three Months Ended Sept 30, 2023 | $12 |
| Nine Months Ended Sept 30, 2024 | $25 |
| Nine Months Ended Sept 30, 2023 | $164 |
Cash Flow and Liquidity
As of September 30, 2024, Qurate Retail had approximately $873 million in cash and cash equivalents across its segments. The net cash provided by operating activities for the nine months ended September 30, 2024, was $313 million, down from $602 million in 2023.
| Cash Flow Information (in millions) | Nine Months Ended Sept 30, 2024 | Nine Months Ended Sept 30, 2023 |
|---|---|---|
| Net cash provided (used) by operating activities | $313 | $602 |
| Net cash provided (used) by investing activities | ($149) | $18 |
| Net cash provided (used) by financing activities | ($412) | ($776) |
Debt and Obligations
As of September 30, 2024, Qurate Retail's total long-term debt included various senior debentures and exchangeable debentures, with a total principal outstanding of approximately $2.192 billion. The company remains compliant with all debt covenants.
| Debt Summary (in millions) | Outstanding Principal | Carrying Value |
|---|---|---|
| 8.5% Senior Debentures due 2029 | $287 | $286 |
| 8.25% Senior Debentures due 2030 | $505 | $503 |
| 4% Exchangeable Senior Debentures due 2029 | $351 | $128 |
| 3.75% Exchangeable Senior Debentures due 2030 | $428 | $161 |
| Total | $2,192 | $2,328 |
Conclusion
Qurate Retail continues to navigate a challenging retail landscape with a focus on enhancing operational efficiencies and leveraging its multi-platform approach to drive sales and engagement.
How Qurate Retail, Inc. (QRTEB) Makes Money
Revenue Streams
Qurate Retail generates revenue primarily through its subsidiaries, including QVC, QVC International, and CBI. The consolidated revenue for the three months ended September 30, 2024, was $2.344 billion, a decrease of 5.4% compared to the same period in 2023. For the nine months ended September 30, 2024, the revenue was $7.093 billion, down 8.7% year-over-year.
| Segment | Three Months Ended September 30, 2024 (in millions) | Three Months Ended September 30, 2023 (in millions) | Nine Months Ended September 30, 2024 (in millions) | Nine Months Ended September 30, 2023 (in millions) |
|---|---|---|---|---|
| QxH | $1,521 | $1,617 | $4,618 | $4,836 |
| QVC International | $571 | $577 | $1,719 | $1,775 |
| CBI | $252 | $285 | $756 | $860 |
| Corporate and Other | $0 | $0 | $0 | $301 |
| Total Consolidated | $2,344 | $2,479 | $7,093 | $7,772 |
Cost of Goods Sold
The cost of goods sold (COGS) for Qurate Retail as a percentage of net revenue was 65.3% for the three months ended September 30, 2024, compared to 64.9% for the same period in 2023. For the nine months ended September 30, 2024, COGS was 64.9%, down from 66.1% in 2023. The decrease in COGS as a percentage of revenue for the nine months was attributed to product margin favorability across segments and lower freight costs at QxH.
Operating Expenses
Operating expenses were 7.9% of net revenue for both the three and nine months ended September 30, 2024, consistent with the same periods in 2023. The decrease in operating expenses as a percentage of sales was driven by lower commissions expense at QxH.
Adjusted OIBDA
Adjusted Operating Income Before Depreciation and Amortization (OIBDA) for the three months ended September 30, 2024, was $250 million, down from $285 million in 2023. For the nine months ended September 30, 2024, Adjusted OIBDA was $791 million, compared to $734 million in the prior year.
| Adjusted OIBDA Components | Three Months Ended September 30, 2024 (in millions) | Three Months Ended September 30, 2023 (in millions) | Nine Months Ended September 30, 2024 (in millions) | Nine Months Ended September 30, 2023 (in millions) |
|---|---|---|---|---|
| Operating Income (Loss) | $152 | $151 | $462 | $693 |
| Depreciation and Amortization | $95 | $105 | $290 | $309 |
| Stock-Based Compensation | $3 | $10 | $22 | $40 |
| Restructuring and Other Costs | $0 | $19 | $18 | ($189) |
| Total Adjusted OIBDA | $250 | $285 | $791 | $734 |
Net Earnings
Qurate Retail reported a net loss of $15 million for the three months ended September 30, 2024, compared to net earnings of $12 million in 2023. For the nine months ended September 30, 2024, net earnings were $25 million, a significant decline from $164 million in the prior year.
Cash Flow and Liquidity
During the nine months ended September 30, 2024, Qurate Retail's primary uses of cash were net debt repayments of $354 million, capital expenditures of $137 million, and dividends paid to noncontrolling interests of $51 million. The projected uses of cash for the remainder of 2024 include continued capital improvement spending between $50 million and $75 million and debt service payments, including approximately $41 million for interest payments.
Debt Structure
As of September 30, 2024, Qurate Retail had various senior debentures outstanding, including:
| Debt Type | Outstanding Principal (in millions) | Carrying Value (in millions) |
|---|---|---|
| 8.5% Senior Debentures due 2029 | $287 | $286 |
| 8.25% Senior Debentures due 2030 | $505 | $503 |
| 4% Exchangeable Senior Debentures due 2029 | $351 | $128 |
| 3.75% Exchangeable Senior Debentures due 2030 | $428 | $161 |
Financial Position
As of September 30, 2024, Qurate Retail's total assets were valued at $10.773 billion, with capital expenditures of $137 million during the same period.
Qurate Retail, Inc. (QRTEB) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- Qurate Retail, Inc. (QRTEB) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Qurate Retail, Inc. (QRTEB)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Qurate Retail, Inc. (QRTEB)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.