QVC Reports 9.8% Revenue Decline and Net Loss in Q1 2025

QVC, Inc. reported a decline in financial performance for the first quarter of 2025, with total revenue decreasing by 9.8% to $1.905 billion compared to $2.111 billion in the same period last year. The decrease was attributed to a 7.6% drop in units shipped and a 1.8% decline in the average selling price per unit. The company's operating income fell to $29 million from $157 million, resulting in a net loss attributable to QVC shareholders of $42 million, compared to a profit of $51 million in the prior year.

In terms of operational changes, QVC has initiated a restructuring strategy known as the WIN strategy, which aims to enhance customer engagement across various platforms and streamline operations. This strategy led to the consolidation of QVC and HSN operations at the Studio Park location in West Chester, Pennsylvania, and the closure of the St. Petersburg, Florida campus. The company recorded $57 million in restructuring costs during the quarter, which included $36 million at QxH and $21 million at QVC International.

The company's balance sheet as of March 31, 2025, showed total assets of $9.675 billion, down from $9.889 billion at the end of 2024. Total liabilities decreased to $6.339 billion from $6.520 billion, while stockholder's equity slightly declined to $3.336 billion from $3.369 billion. QVC's long-term debt increased to $3.969 billion, reflecting ongoing borrowing activities, including $866 million in new debt during the quarter.

QVC's customer engagement metrics showed a decline in user activity, with a notable decrease in units shipped across all product categories. The company is focusing on digital platforms to enhance customer interactions, as traditional television shopping faces challenges from changing consumer behaviors. The company also reported a decrease in advertising expenses, which rose to $63 million from $60 million, primarily driven by increased spending on social and streaming platforms.

Looking ahead, QVC anticipates continued challenges due to economic uncertainties, including inflationary pressures and changing consumer spending habits. The company is committed to adapting its strategies to maintain revenue and profitability, while also managing its debt obligations and operational costs. The outlook remains cautious as QVC navigates the evolving retail landscape and seeks to leverage its digital capabilities to drive future growth.