QVC Group, Inc. · NASDAQ:QVCG
QVC — Qurate Retail — Q1 2020 Earnings Presentation
10 slides from QVC's earnings presentation, May 6, 2020
Slide 1: Q1 2020 Earnings Presentation
Q1 2020 Earnings Presentation
Slide 2: Safe Harbor and Non-GAAP Measures
Safe Harbor and Non-GAAP Measures This presentation includes certain forward-looking statements contained herein to reflect any change in QRI’s or QVC’s within the meaning of the Private Securities Litigation Reform Act expectations with regard thereto or any change in events, of 1995, including sta
Slide 3: COVID-19 Response
COVID-19 Response Our Team Members Our Customers Our Communities Our Investors • Protecting our team members’ • Stayed open for business on • Committed $10M to support • Maintained operations safety and financial wellbeing multiple platforms urgent needs in communities • Managing our cost structure
Slide 4: Revenue & Adjusted OIBDA: Business Segment Contribution
Revenue & Adjusted OIBDA Business Segment Contribution Q1 2020 1% 6% 11% 25% 22% Revenue Adjusted OIBDA $2.9B $0.4B 75% 61% Cornerstone Zulily QVC International QxH -1% $1.7B eCommerce Revenue Note: Percentages exclude intersegment eliminations and unallocated corporate costs QURATE RETAIL, INC. 4
Slide 5: Revenue & Adjusted OIBDA: Year-on-Year Quarterly Comparative
Revenue & Adjusted OIBDA Year-on-Year Quarterly Comparative REVENUE 2019 2020 Q1 Q2 Q3 Q4 FY 2019 Q1 QxH -4% -1% -4% -3% -3% -4% QVC International -5% -2% 2% 1% -1% -1% QVC International (Constant Currency) 1% 1% 3% 1% 1% 0% Zulily -5% -13% -17% -18% -14% -20% Cornerstone -10% -11% -2% -6% -7% -5% T
Slide 6: QxH Category Performance
QxH Category Performance Prior Year Comparative CATEGORY 2019 2020 Q1 Q2 Q3 Q4 FY 2019 Q1 Home Apparel Beauty Accessories Electronics Flat Jewelry Notable Brands QURATE RETAIL, INC. 6
Slide 7: QxH Customer Profile
QxH Customer Profile TTM March 2020 Existing 53% Existing 87% Reactivated 6% Reactivated 22% New 7% Percentage of Percentage of All Customers Shipped Sales New 25% Existing Customers Annual Purchases: 27 Items purchased $1.4K Spend Existing customer: Made a purchase in two consecutive 12-month perio
Slide 8: QxH Adjusted OIBDA Margin
QxH Adjusted OIBDA Margin Basis Point Change Year-on-Year CONTRIBUTING FACTOR Q1 2020 Product Margin1 Costs of Goods Sold 5 Fulfillment (Warehouse/Freight)2 Costs of Goods Sold (125) Obsolescence Costs of Goods Sold 30 Commissions3 Operating Expense (10) Marketing SG&A (25) Bad Debt SG&A (50) Admini
Slide 9: Qurate Retail, Inc. Free Cash Flow
Qurate Retail, Inc. Free Cash Flow US$ in Millions Q1 2019 Q1 2020 Net Cash Provided by Operating Activities 156 172 Less: Capital Expenditures (61) (45) Less: Expenditures for Television Distribution Rights (52) (1) Less: Investments in and Loans to Cost and Equity Investees (43) (36) Less: Dividen
Slide 10: Qurate Retail, Inc.
qu rate RETAIL, INC. Qvc | Ss | Zubily | BALLARD DESIGNS | FRONTGATE | Garnet Hill | grandinroad. | Ryllace