QVC Reports $8.997 Billion Revenue Decline and $770 Million Operating Loss for Fiscal Year 2024

QVC, Inc. reported a consolidated net revenue of $8.997 billion for the fiscal year ending December 31, 2024, reflecting a decrease of 4.8% compared to $9.449 billion in 2023. The decline was primarily attributed to a 2.9% decrease in units shipped within the QxH segment, which includes QVC-U.S. and HSN, and a 1.6% drop in average selling prices. Additionally, unfavorable foreign exchange rates and a decrease in shipping and handling revenue contributed to the overall revenue decline. The QVC-International segment, however, saw a slight increase in units shipped, which partially offset the losses from QxH.

The company's operating loss for 2024 was reported at $770 million, a significant decline from an operating income of $645 million in the previous year. This loss was influenced by substantial impairment charges totaling $1.48 billion, which included $902 million related to goodwill and $578 million for tradenames. The restructuring efforts, including a shift to a managed services model for IT, also incurred $18 million in costs. Despite these challenges, QVC's Adjusted Operating Income Before Depreciation and Amortization (Adjusted OIBDA) increased to $1.098 billion, up from $1.071 billion in 2023, indicating some operational resilience.

In terms of strategic developments, QVC has been implementing a turnaround plan known as Project Athens, aimed at stabilizing its core businesses and enhancing its video streaming commerce capabilities. This initiative has included workforce reductions and inventory management strategies. As part of its ongoing strategy, QVC announced a transition to the WIN strategy in November 2024, focusing on enhancing customer interactions across various platforms and leveraging technology for operational efficiency. Additionally, the company plans to consolidate its QVC and HSN operations at its Studio Park location in West Chester, PA, which is expected to streamline operations further.

Operationally, QVC served approximately 11.6 million unique customers in 2024, with a workforce of around 17,000 employees. The company handled approximately 79 million customer calls and shipped around 198 million units globally. The e-commerce segment accounted for 60.9% of total net revenue, highlighting the growing importance of digital sales channels. QVC's customer base remains loyal, with 96% of shipped sales coming from repeat and reactivated customers, underscoring the effectiveness of its customer retention strategies.

Looking ahead, QVC anticipates continued challenges due to economic uncertainties and inflationary pressures that may affect consumer spending. The company is focused on adapting to changing market conditions and consumer preferences while enhancing its digital and streaming capabilities. QVC's management remains committed to improving operational efficiency and financial performance, with plans to invest in technology and product offerings that resonate with its customer base.