Qurate Retail Group, Inc. (QRTEA) Misses Q1 EPS by 3c, Revenues Miss

Qurate Retail Group, Inc. (NASDAQ: QRTEA) reported Q1 EPS of $0.35, $0.03 worse than the analyst estimate of $0.38. Revenue for the quarter came in at $3.1 million versus the consensus estimate of $3.25 billion.

Operating results:

• Qurate Retail revenue decreased 4% to $3.1 billion
  • Revenue decreased 3% in constant currency(2)
  • eCommerce revenue of $1.8 billion or 59% of total revenue
• Qurate Retail reported diluted EPS of $0.13; adjusted EPS(3) of $0.35
• QxH revenue decreased 4% to $1.9 billion
• QVC International revenue decreased 5% to $644 million, as reported
  • Revenue increased 1% in constant currency
• Zulily revenue decreased 5% to $397 million
• Cornerstone revenue decreased 10% to $187 million, as reported; decreased 4% excluding Improvements
• Realized total run-rate cost synergies of $67 million to-date through March 31st

Corporate updates:

• From February 1st through April 30th, repurchased 5.9 million QRTEA shares at an average price per share of $20.36 and total cost of $119 million

“Our first quarter performance was disappointing amidst a changing retail and media landscape,” said Mike George, President and CEO of Qurate Retail. “Our recent results have been more variable as we navigate the evolution of our business model and the integration of HSN, fine-tune our investments, and strike the right balance between sensible revenue growth, margin expansion, new customer acquisition and our strategic initiatives. We are taking a disciplined approach, investing in initiatives to drive high-quality customer growth and engagement, broaden and deliver our assortments, particularly across new digital platforms, and optimize our fulfillment network. Our customer fundamentals remain strong, including customer count, retention and purchase frequency. We are confident we are taking the right actions to deliver attractive operating margins and free cash flow for the long-term.”

For earnings history and earnings-related data on Qurate Retail Group, Inc. (QRTEA) click here.

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