QVC Group, Inc. · NASDAQ:QVCG
QVC — Qurate Retail — Q3 2019 Earnings Presentation
8 slides from QVC's earnings presentation, Nov 11, 2019
Slide 1: Curated Experiences. Infinite Possibilities. Q3 2019
Curated Experiences. Infinite Possibilities.® Q3 2019 1
Slide 2: Safe Harbor and Non-GAAP Measures
Safe Harbor and Non-GAAP Measures This presentation includes certain forward-looking statements in QRI’s or QVC’s expectations with regard thereto or any change within the meaning of the Private Securities Litigation Reform Act in events, conditions or circumstances on which any such of 1995, includ
Slide 3: Revenue & Adjusted OIBDA: Business Segment Contribution
Revenue & Adjusted OIBDA Business Segment Contribution Q3 2019 1% 7% 2% 12% 23% 21% Revenue Adjusted OIBDA $3.1B $0.5B 74% 60% Cornerstone Zulily QVC International QxH $1.8B eCommerce Revenue Note: Percentages exclude intersegment eliminations and unallocated corporate costs 3
Slide 4: Revenue & Adjusted OIBDA: Year-on-Year Quarterly Comparative
Revenue & Adjusted OIBDA Year-on-Year Quarterly Comparative REVENUE1 2018 2019 Q1 Q2 Q3 Q4 FY 2018 Q1 Q2 Q3 QxH2 -2% -2% 0% 1% -1% -4% -1% -4% QVC International 14% 7% 1% -3% 4% -5% -2% 2% QVC International (Constant Currency) 2% 1% 2% -1% 1% 1% 1% 3% Zulily3 17% 13% 18% 5% 12% -5% -13% -17% Corners
Slide 5: QxH Category Performance
QxH Category Performance Prior Year Comparative CATEGORY 2018 2019 Q1 Q2 Q3 Q4 FY 2018 Q1 Q2 Q3 Home Apparel Beauty Accessories Electronics Flat Jewelry Notable Brands 5
Slide 6: QxH Customer Profile
QxH Customer Profile TTM September 2019 Existing 52% Existing 87% Reactivated 6% New 7% Reactivated 22% Percentage of Percentage of All Customers Shipped Sales New 26% Existing Customers Annual Purchases: 27 Items purchased $1.4K Spend Existing customer: Customer who made a purchase in two consecuti
Slide 7: QxH Adjusted OIBDA Margin
QxH Adjusted OIBDA Margin Basis Point Change Year-on-Year CONTRIBUTING FACTOR Q3 2019 Commissions1 95 Product Mix Impact2 35 Warehouse3 (65) Inventory Management4 (60) Freight (QxH Operated Facilities) (45) Marketing (25) Other5 15 TOTAL (50) 1 Includes accounting changes and synergies from renegoti
Slide 8: Qurate Retail Tariff Update
Qurate Retail Tariff Update Annualized Net Exposure Other Culinary Electronics Home Innovations 100% Category 90% Fulfillment & Exposure Other 80% 70% Home Décor Apparel 60% Accessories 50% Product 40% Cost of Retail Sales 30% 35% – 40% 20% Total Cost Retail Sales 10% 0% Total Total Cost Retail Sale