QVC Group, Inc. · NASDAQ:QVCG
QVC — Qurate Retail — Q3 2020 Earnings Presentation
11 slides from QVC's earnings presentation, Nov 5, 2020
Slide 1: Q3 2020 Earnings Presentation
Curated Experiences. Infinite Possibilities.® Q3 2020 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 OIBDA, adjusted OIBDA margin, free cash flow, and constant currency. meaning of the Private Securities Litigation Reform Act of 1995, including Information regarding the comparable GAAP metrics
Slide 3: Revenue & Adjusted OIBDA: Business Segment Contribution
Revenue & Adjusted OIBDA Business Segment Contribution Q3 2020 8% 6% 5% 12% 23% 21% Revenue Adjusted OIBDA $3.4B $0.6B +10% +24% Cornerstone 66% 59% Zulily QVC International QxH $2.1B eCommerce Revenue Note: Percentages within the stacked bars exclude intersegment eliminations and unallocated corpor
Slide 4: 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 Q2 Q3 QxH -4% -1% -4% -3% -3% -4% 7% 7% QVC International -5% -2% 2% 1% -1% -1% 11% 11% QVC International (Constant Currency) 1% 1% 3% 1% 1% 0% 12% 8% Zulily -5% -13% -17% -18% -14% -20% 16% 10% Corn
Slide 5: QxH Category Performance
QxH Category Performance Prior-Year Comparative CATEGORY 2019 2020 Q1 Q2 Q3 Q4 FY 2019 Q1 Q2 Q3 Home Apparel Beauty Accessories Electronics Flat Jewelry Notable Brands SOLUTIONS QURATE RETAIL, INC. 5
Slide 6: QxH Category Mix Shift to Home
QxH Category Mix Shift to Home Category % of Revenue 2% 2% 5% 5% 11% 11% 17% 15% 16% 18% 10% 11% 41% 36% Q3-19 Q3-20 Home Electronics Apparel Beauty Accessories Jewelry Other Fashion Categories: Apparel, Beauty, Accessories and Jewelry QURATE RETAIL, INC. 6 Home Categories: Home and Electronics
Slide 7: QxH Customer Profile
QxH Customer Profile Trailing Twelve Months Ended September 2020 Existing 49% Existing 85% Reactivated 7% Reactivated 22% New 8% Percentage of Percentage of All Customers Shipped Sales New 29% Existing Customers Annual Purchases: 28 Items purchased $1.4K Spend New: Never purchased previously Reactiv
Slide 8: QxH Customer Growth
QxH Customer Growth Number of Customers Year-on-Year Comparative 11,282 +6% 2,517 +7% 5,236 3,310 +17% +8% +15% 587 +27% 665 5,455 (1%) +5% 3,984 Q3-20 LTM September '20 Existing New Reactivated New: Never purchased previously Reactivated: Purchased in past, but not in last 12 months Existing: Made
Slide 9: QxH Adjusted OIBDA Margin
QxH Adjusted OIBDA Margin Basis Point Change Year Over Year Adjusted OIBDA Explanation Q3-19 Margin 18.7% (+) Customer Returns, Shipping & Handling Revenue, Vendor Negotiations, Pricing/Promotional Actions Product Margin1 Cost of Goods Sold 220 (-) Category Mix (-) Freight Rates, Bethlehem-Related D
Slide 10: Qurate Retail, Inc. Free Cash Flow
Qurate Retail, Inc. Free Cash Flow US$ Millions Nine Months Ended September 2019 September 2020 Net Cash Provided by Operating Activities 910 1,855 Less: Capital Expenditures (249) (165) Less: Expenditures for Television Distribution Rights (128) (41) Less: Investments in and Loans to Cost and Equit
Slide 11: Qurate Retail, Inc.
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