QVC Group, Inc. reported a decline in financial performance for the first quarter of 2025, with total revenue decreasing by 10.1% to $2.105 billion, down from $2.342 billion in the same period last year. The company's operating income also fell significantly, dropping to $14 million from $145 million in the prior year. The decline in revenue was attributed to decreased sales across all segments, particularly in the QxH segment, which includes QVC U.S. and HSN, where revenue fell by 11.1%. The company recorded a net loss of $91 million, compared to a net profit of $8 million in the first quarter of 2024.
In terms of operational metrics, QVC Group experienced a 7.6% decrease in units shipped, which contributed to the revenue decline. The average selling price per unit also decreased by 1.8%. The company noted a decrease in estimated product returns, which partially offset the revenue decline. Additionally, QVC's Adjusted OIBDA, a non-GAAP measure, decreased by 31.7% to $177 million, reflecting lower profitability across its segments.
Strategically, QVC Group is undergoing significant organizational changes as part of its WIN strategy, which aims to enhance customer interactions and streamline operations. The company announced the consolidation of its QVC and HSN operations at its Studio Park location in West Chester, Pennsylvania, resulting in the closure of its St. Petersburg, Florida campus. This consolidation led to $14 million in accelerated depreciation and $57 million in restructuring costs during the quarter. Furthermore, the company has transitioned various administrative services from Liberty Media Corporation to its management team, effective April 1, 2025.
As of March 31, 2025, QVC Group's total assets stood at $8.981 billion, a decrease from $9.243 billion at the end of 2024. The company reported a total debt of $5.566 billion, with a consolidated leverage ratio exceeding the threshold that restricts dividend payments under its senior secured notes. The company’s cash and cash equivalents totaled $833 million, with an available borrowing capacity of $863 million under its credit facility. Looking ahead, QVC Group anticipates that its ability to generate positive cash flow will be crucial for funding its projected uses of cash, including capital expenditures and debt service payments.