QVC Group, Inc. · NASDAQ:QVCG
QVC — Qurate Retail — Q4 2023 Earnings Presentation
14 slides from QVC's earnings presentation, Feb 28, 2024
Slide 1: Q4 2023 Earnings Presentation
Q4 2023 Earnings Presentation
Slide 2: Safe Harbor and Non-GAAP Measures
Safe Harbor and Non-GAAP Measures This presentation includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including This presentation includes non-GAAP financial measures including adjusted statements about business strategies and ini
Slide 3: Revenue & Adjusted OIBDA
Revenue & Adjusted OIBDA Business Segment Contribution Q4 2023 10% 8% 21% 28% Revenue Adjusted OIBDA $3.1B $340M (11)% vs 2022 73% vs 2022 (4)% vs 2022 (excl. Zulily) 46% vs. 2022 (excl. Zulily) 69% 64% Revenue OIBDA QxH QVC Internatinoal Cornerstone $2.0B eCommerce Revenue I 64% of Revenue (1)% YoY
Slide 4: Revenue & Adjusted OIBDA: Prior Year Quarterly Comparative
Revenue & Adjusted OIBDA Prior Year Quarterly Comparative REVENUE 2022 2023 Q1 Q2 Q3 Q4 FY-22 Q1 Q2 Q3 Q4 FY-23 QxH (13)% (12)% (8)% (11)% (11)% (5)% (8)% (3)% (4)% (5)% QVC International (13)% (19)% (21)% (18)% (18)% (12)% (5)% 4% 2% (3)% QVC International A (7)% (8)% (5)% (4)% (6)% (3)% (3)% 1% 0%
Slide 5: QxH Category Performance
QxH Category Performance Prior-Year Comparative 2022 2023 Q1 Q2 Q3 Q4 FY-22 Q1 Q2 Q3 Q4 FY-23 Home (16)% (12)% (9)% (13)% (13)% (2)% (11)% 2% (2)% (3)% Electronics (27)% (33)% (11)% (14)% (20)% (25)% (27)% (18)% (17)% (20)% Apparel 2% (1)% (2)% (15)% (4)% (0)% (4)% (8)% 3% (3)% Beauty (9)% (14)% (10
Slide 6: QxH Category Mix
QxH Category Mix Category % of Revenue 3% 2% 3% 4% 10% 10% Other 15% 16% Jewelry Accessories 12% 12% Beauty 16% 14% Apparel Electronics Home 41% 42% Q4-22 Q4-23 Fashion Categories: Apparel, Beauty, Accessories and Jewelry Home Categories: Home and Electronics QURATE RETAIL, INC. 6
Slide 7: QxH Customer Profile
QxH Customer Profile Trailing Twelve Months Ended December 2023 Existing 52% Reactivated Existing 90% 6% Reactivated 24% New 4% Percentage of Percentage of All Customers Shipped Sales New 24% Existing Customers Annual Purchases: 31 Items purchased $1.6K Spend New: Never purchased previously Reactiva
Slide 8: QxH Customer Count
QxH Customer Count Last 12 Months Ended (‘000s) 8,873 8,547 8,259 8,150 8,064 2,166 2,106 1,995 1,980 1,965 1,938 1,823 1,816 1,814 1,902 4,769 4,618 4,448 4,356 4,197 Dec '22 Mar '23 Jun '23 Sep '23 Dec '23 Existing New Reactivated New: Never purchased previously Reactivated: Purchased in past, but
Slide 9: QxH Adjusted OIBDA Margin
QxH Adjusted OIBDA Margin Basis Point Change Year Over Year Fiscal 2023 Q4 Trend Driver Q1 Q2 Q3 Q4 FY Prior Year 13.4% 13.2% 8.6% 6.6% 10.2% Gross Margin Product Margin1 (125) 70 185 215 95 Higher-Margin Products, Less Clearance/Improved Inventory, Initial Margin Initiatives Gross Margin Fulfillmen
Slide 10: Qurate Retail, Inc. Free Cash Flow
Qurate Retail, Inc. Free Cash Flow US$ Millions Twelve Months Ended December 31 2022 2023 Net Cash Provided (Used) by Operating Activities1 194 919 Plus: Insurance Proceeds Related to Fixed Assets 184 54 Less: Capital Expenditures (268) (230) Less: Expenditures for Television Distribution Rights (45
Slide 11: Sale Leaseback Transactions Summary
Sale Leaseback Transactions Summary ➢ Completed sale leaseback for Ontario, CA fulfillment center on 6/28/22 • $340 million aggregate consideration o $250 million cash proceeds o $84 million debt forgiveness related to previous lease o $37 million right-of-use asset, offset by $31 million operating
Slide 12: QVC, Inc. Headline Financial Covenant Summary
QVC, Inc. Headline Financial Covenant Summary ➢ Liberty Interactive LLC (“LI LLC”) Debt • No material covenants other than liens tests ➢ QVC, Inc. Credit Facility • Primary covenant is 4.5x net leverage test (maintenance based) o QVC, Inc. leverage as of 12/31/23 is 2.4x as defined in QVC’s credit a
Slide 13: Glossary
Glossary Existing Customer: Made a purchase in two consecutive 12-month periods. New Customer: Never made a purchase previously. Reactivated Customer: Purchased in past, but not in last 12 months. Best Customer (QVC): Purchased 20+ units in last 12 months. QURATE RETAIL, INC. 13
Slide 14: Qurate Retail, Inc.
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