QVC Group, Inc. · NASDAQ:QVCG
QVC — Qurate Retail — Q1 2021 Earnings Presentation
13 slides from QVC's earnings presentation, May 7, 2021
Slide 1: Q1 2021 Earnings Presentation
Q1 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 → Outstanding Q1-21 results • Strong revenue and profit growth and margin expansion • Broad-based gains across all businesses and markets • Robust new customer growth • Expanded reach across new digital platforms → Built sales momentum in quarter • Sustained momentum in Home categorie
Slide 4: Revenue & Adjusted OIBDA Growth
Revenue & Adjusted OIBDA Growth Business Segment Contribution Q1 2021 5% 8% 1% 11% 27% 23% Revenue Adjusted OIBDA $3.3B $0.5B +14% +35% Cornerstone 67% 58% Zulily QVC International QxH eCommerce Revenue $2.1B (+19%) | 61% of Revenue Note: Percentages within the stacked bars exclude intersegment elim
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 QxH -4% 7% 7% 1% 3% 8% QVC International -1% 11% 11% 16% 10% 22% QVC International A 0% 12% 8% 10% 8% 15% Zulily -20% 16% 10% 11% 4% 19% Cornerstone -5% 18% 26% 30% 19% 41% Total Qurate Retail
Slide 6: QxH Category Performance
QxH Category Performance Prior-Year Comparative 2020 2021 Q1 Q2 Q3 Q4 FY 2020 Q1 Home 0% 22% 22% 17% 16% 14% Electronics -4% 25% -6% -17% -6% 16% Apparel -9% -12% -7% -10% -9% -3% Beauty -1% 2% -2% -10% -3% -1% Accessories -4% -1% 10% 6% 3% 12% Jewelry -13% -11% -5% -9% -10% 0% Total -4% 7% 7% 1% 3%
Slide 7: QxH Category Mix Shift to Home
QxH Category Mix Shift to Home Category % of Revenue 2% 3% 5% 5% 12% 12% 16% 15% 17% 15% 10% 10% 38% 40% Q1-20 Q1-21 Home Electronics Apparel Beauty Accessories Jewelry Other Fashion Categories: Apparel, Beauty, Accessories and Jewelry QURATE RETAIL, INC. 7 Home Categories: Home and Electronics
Slide 8: QxH Customer Profile
QxH Customer Profile Trailing Twelve Months Ended March 2021 Existing 47% Existing 85% Reactivated 7% Reactivated 22% New 8% Percentage of Percentage of All Customers Shipped Sales New 31% Existing Customers Annual Purchases: 28 Items purchased $1.4K Spend New: Never purchased previously Reactivated
Slide 9: QxH Customer Growth
QxH Customer Growth Number of Customers Year-on-Year Comparative 11,777 +12% 3,613 +35% 5,326 +8% 2,611 +14% +20% 695 +10% 593 5,553 (1%) +5% 4,038 Q1-21 LTM March 2021 Existing Reactivated New New: Never purchased previously Reactivated: Purchased in past, but not in last 12 months Existing: Made a
Slide 10: QxH and QVC International Strategic Priorities
QxH and QVC International Strategic Priorities Strategic Priority Create Special Products at Compelling Values • Offer winning products with stories that inspire and excite • Differentiate on compelling all-in value that triggers purchases Extend Reach and Relevance • Provide holistic shopping and l
Slide 11: QxH Adjusted OIBDA Margin
QxH Adjusted OIBDA Margin Basis Point Change Year Over Year Basis Point Change Fiscal 2021 Q1 Trend Driver Year over Year Q1 Prior Year 16.4% Returns, Strategic Sourcing, Promotional Pullback Product Margin1 50 Shipping and Handling Revenue Fixed Cost Leverage Fulfillment2 (55) Freight Rates and Sur
Slide 12: Qurate Retail, Inc. Free Cash Flow
Qurate Retail, Inc. Free Cash Flow US$ Millions Three Months Ended March 31 2020 2021 Net Cash Provided by Operating Activities 172 153 Less: Capital Expenditures (45) (47) Less: Expenditures for Television Distribution Rights (1) (56) Less: Investments in Green Energy1 (36) (40) Less: Dividends Pai
Slide 13: Qurate Retail, Inc.
qu rate RETAIL, INC. Qvc | GH | zufily. | Baviann DESIGNS | FRONTGATE | Garnet Hill’ | grandinroad.