QVC Group, Inc. · NASDAQ:QVCG
QVC — Qurate Retail — Q2 2021 Earnings Presentation
13 slides from QVC's earnings presentation, Aug 6, 2021
Slide 1: Q2 2021 Earnings Presentation
Q2 2021 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 This presentation includes non-GAAP financial measures including adjusted meaning of the Private Securities Litigation Reform Act of 1995, including OIBDA, adjusted OIBDA margin, free cash flow
Slide 3: Key Highlights
Key Highlights → Encouraging Q2-21 results • Sustained growth on top of 2020 performance • Continued to expand and innovate digital ecosystem • Experienced unit volume growth and increased spend per customer at QxH • High engagement from best customers → Category mix shift evolved as expected • Rebo
Slide 4: Revenue & Adjusted OIBDA Growth
Revenue & Adjusted OIBDA Growth Business Segment Contribution Q2 2021 9% 9% 11% 1% 24% 23% Revenue Adjusted OIBDA $3.5B $0.6B +2% vs 2020 +3% vs 2020 +13% vs 2019 +13% vs 2019 Cornerstone 66% 57% Zulily QVC International QxH $2.2B eCommerce Revenue I 62% of Revenue Flat vs 2020 | +19% vs 2019 Note:
Slide 5: Revenue & Adjusted OIBDA Growth: Year-on-Year Quarterly Comparative
Revenue & Adjusted OIBDA Growth Year-on-Year Quarterly Comparative REVENUE 2020 2021 Q1 Q2 Q3 Q4 FY2020 Q1 Q2 QxH (4)% 7% 7% 1% 3% 8% (1)% QVC International (1)% 11% 11% 16% 10% 22% 11% QVC International A 0% 12% 8% 10% 8% 15% 5% Zulily (20)% 16% 10% 11% 4% 19% (6)% Cornerstone (5)% 18% 26% 30% 19%
Slide 6: QxH Category Performance
QxH Category Performance Prior-Year Comparative 2020 2021 Q1 Q2 Q3 Q4 FY 2020 Q1 Q2 Home 0% 22% 22% 17% 16% 14% (3)% Electronics (4)% 25% (6)% (17)% (6)% 16% (23)% Apparel (9)% (12)% (7)% (10)% (9)% (3)% 19% Beauty (1)% 2% (2)% (10)% (3)% (1)% (10)% Accessories (4)% (1)% 10% 6% 3% 12% 11% Jewelry (1
Slide 7: QxH Category Mix Shift to Apparel and Accessories
QxH Category Mix Shift to Apparel and Accessories Category % of Revenue 2% 2% 2% 5% 4% 4% 13% 12% 14% Other 16% Jewelry 17% 15% Accessories 15% 18% Beauty 19% 11% Apparel 8% 9% Electronics Home 40% 39% 35% Q2-19 Q2-20 Q2-21 Fashion Categories: Apparel, Beauty, Accessories and Jewelry QURATE RETAIL,
Slide 8: QxH Customer Profile
QxH Customer Profile Trailing Twelve Months Ended June 2021 Existing 49% Existing 86% Reactivated 6% Reactivated 22% New 8% Percentage of Percentage of All Customers Shipped Sales New 29% Existing Customers Annual Purchases: 28 Items purchased $1.4K Spend New: Never purchased previously Reactivated:
Slide 9: QxH Customer Growth
QxH Customer Growth Customer Count Year-on-Year Comparative Q2 2021 LTM June 2021 ‘000s Count vs 2020 vs 2019 Count vs 2020 vs 2019 New 588 (32%) +17% 3,329 +5% +17% Reactivated 569 (17%) +7% 2,496 +2% +5% Existing 3,978 (2%) +1% 5,616 +3% +3% Total 5,135 (9%) +4% 11,441 +3% +7% New: Never purchased
Slide 10: QxH and QVC International Strategic Priorities
QxH and QVC International Strategic Priorities Strategic Priority Create Special Products at Compelling Values • Offer winning products with stories that inspire and excite • Differentiate on compelling all-in value that triggers purchases Extend Reach and Relevance • Provide holistic shopping and l
Slide 11: QxH Adjusted OIBDA Margin
QxH Adjusted OIBDA Margin Basis Point Change Year Over Year Basis Point Change Fiscal 2021 Q2 Trend Driver Year over Year Q1 Q2 Prior Year 16.4% 19.3% Product Mix | Strategic Sourcing Product Margin1 50 60 Liquidations Decommission Fulfillment Site Ramp Down Fulfillment2 (55) (145) ASP Deleverage |
Slide 12: Qurate Retail, Inc. Free Cash Flow
Qurate Retail, Inc. Free Cash Flow US$ Millions Six Months Ended June 30 2020 2021 Net Cash Provided by Operating Activities 1,198 702 Less: Capital Expenditures (108) (110) Less: Expenditures for Television Distribution Rights (10) (170) Less: Investments in Green Energy1 (55) (60) Less: Dividends
Slide 13: Qurate Retail, Inc.
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