QVC Reports 7% Revenue Decline and $2.165 Billion Loss in Q2 2025

QVC, Inc. reported a significant decline in its financial performance for the second quarter of 2025, with total revenue decreasing by 7.0% to $1.984 billion compared to $2.134 billion in the same period last year. For the first half of 2025, revenue fell by 8.4% to $3.889 billion from $4.245 billion. The decline was primarily attributed to a 9.6% decrease in units shipped, particularly within the QxH segment, which encompasses QVC-U.S. and HSN. The company also recorded a substantial impairment charge of $2.395 billion related to goodwill and intangible assets, which significantly impacted its net earnings, resulting in a loss of $2.165 billion for the quarter.

In terms of operational metrics, QVC's cost of goods sold as a percentage of net revenue increased slightly to 64.6% for the three months ended June 30, 2025, compared to 64.4% in the prior year. The company experienced a decrease in average selling price per unit across both segments, contributing to the overall revenue decline. Additionally, QVC's advertising expenses rose by 8.3% for the quarter, driven by increased spending on social and streaming platforms. The company also reported a decrease in selling, general, and administrative expenses, reflecting cost-cutting measures and a reduction in personnel costs.

Strategically, QVC has been implementing its WIN strategy, which focuses on enhancing customer interactions across various platforms, creating engaging content experiences, and leveraging technology to streamline operations. As part of this strategy, the company announced the consolidation of its QVC and HSN operations at its Studio Park location in West Chester, Pennsylvania, leading to the closure of its St. Petersburg, Florida campus. This consolidation is expected to optimize production and improve operational efficiency, although it has resulted in accelerated depreciation costs.

QVC's balance sheet showed total assets of $7.375 billion as of June 30, 2025, down from $9.889 billion at the end of 2024. The company's total liabilities also decreased to $6.112 billion from $6.520 billion, primarily due to a reduction in current liabilities. However, the company's equity fell sharply to $1.263 billion from $3.369 billion, reflecting the significant net loss and impairment charges. The company remains in compliance with its debt covenants, although its credit ratings have been downgraded, which may affect its future borrowing costs and access to capital.

Looking ahead, QVC's management expressed concerns about the impact of economic conditions, including inflation and changes in consumer spending, on its business. The company is focused on adapting to market conditions and enhancing its digital platforms to attract and retain customers. However, uncertainties surrounding trade policies and tariffs may pose additional challenges to its operations and profitability. The company aims to navigate these challenges while continuing to implement its strategic initiatives to drive growth and improve financial performance.