Quarterly report [Sections 13 or 15(d)]

Information About QVC Group's Operating Segments

v3.25.3
Information About QVC Group's Operating Segments
 9 Months Ended
Sep. 30, 2025
Segment Reporting, Disclosure of Other Information about Entity's Reportable Segments [Abstract]  
Information About QVC Group's Operating Segments
(11) Information About QVC Group's Operating Segments
QVC Group, through its ownership interests in subsidiaries and other companies, is primarily engaged in the video and online commerce industries. QVC Group identifies its reportable segments as (A) those operating segments that represent 10% or more of its consolidated annual revenue, annual Adjusted OIBDA (as defined below) or total assets and (B) those equity method affiliates whose share of earnings represent 10% or more of QVC Group's annual pre-tax earnings. The segment presentation for prior periods has been conformed to the current period segment presentation.
The QVC Group chief operating decision maker, the chief executive officer, primarily evaluates performance and makes decisions about allocating resources to its operating segments based on financial measures such as revenue, cost of goods sold, gross profit, operating expense, advertising expense, selling, general and administrative expense and Adjusted OIBDA, in addition to average sales price per unit, number of units shipped and revenue or sales per customer equivalent. In addition, QVC Group reviews nonfinancial measures such as unique website visitors, conversion rates and active customers, as appropriate.
For segment reporting purposes, QVC Group defines Adjusted OIBDA as revenue less cost of goods sold, operating expenses, and selling, general and administrative expenses excluding stock-based compensation and, where applicable, separately identified items impacting comparability. QVC Group believes this measure is an important indicator of the operational strength and performance of its businesses by identifying those items that are not directly a reflection of each business’ performance or indicative of ongoing business trends. In addition, this measure allows management to view operating results and perform analytical comparisons and benchmarking between businesses and identify strategies to improve performance. This measure of performance excludes depreciation and amortization, stock-based compensation, and where applicable, separately identified impairments, litigation settlements, restructuring (benefits), acquisition-related costs, and gains (losses) on sale-leaseback transactions, that are included in the measurement of operating income (loss) pursuant to GAAP. Accordingly, Adjusted OIBDA should be considered in addition to, but not as a substitute for, operating income (loss), net earnings (loss), cash flows provided by operating activities and other measures of financial performance prepared in accordance with GAAP. QVC Group generally accounts for intersegment sales and transfers as if the sales or transfers were to third parties, that is, at current prices.
For the nine months ended September 30, 2025, QVC Group has identified the following operating segments as its reportable segments:
•QxH – QVC U.S. and HSN market and sell a wide variety of consumer products in the U.S., primarily by means of their televised shopping programs and via the Internet through their websites (including social media) and mobile applications.
•QVC International – QVC International markets and sells a wide variety of consumer products in several foreign countries, primarily by means of its televised shopping programs and via the Internet through its international websites (including social media) and mobile applications.
•CBI – CBI consists of a portfolio of aspirational home and apparel brands in the U.S. that sell merchandise through brick-and-mortar retail locations as well as via the Internet through their websites.
QVC Group's operating segments are strategic business units that offer different products and services. They are managed separately because each segment requires different technologies, distribution channels and marketing strategies. The accounting policies of the segments are the same as those described in the Company's Summary of Significant Accounting Policies in the 2024 10-K.
Performance Measures
Disaggregated revenue by segment and product category consisted of the following:
Three months ended
September 30, 2025
QxH QVC Int'l CBI Corp and other Total
in millions
Home $ 570  227  195  —  992 
Apparel 283  106  36  —  425 
Beauty 204  128  —  —  332 
Accessories 174  52  —  —  226 
Jewelry 61  39  —  —  100 
Electronics 89  14  —  —  103 
Other revenue 35  —  —  —  35 
Total Net Revenue $ 1,416  566  231  —  2,213 
Nine months ended
September 30, 2025
QxH QVC Int'l CBI Corp and other Total
in millions
Home $ 1,635  683  568  —  2,886 
Apparel 840  317  114  —  1,271 
Beauty 623  386  —  —  1,009 
Accessories 527  154  —  —  681 
Jewelry 186  109  —  —  295 
Electronics 254  45  —  —  299 
Other revenue 110  2  —  —  112 
Total Net Revenue $ 4,175  1,696  682  —  6,553 
Three months ended
September 30, 2024
QxH QVC Int'l CBI Corp and other Total
in millions
Home $ 611  226  214  —  1,051 
Apparel 294  98  38  —  430 
Beauty 225  135  —  —  360 
Accessories 185  52  —  —  237 
Jewelry 63  43  —  —  106 
Electronics 104  17  —  —  121 
Other revenue 39  —  —  —  39 
Total Net Revenue $ 1,521  571  252  —  2,344 
Nine months ended
September 30, 2024
QxH QVC Int'l CBI Corp and other Total
in millions
Home $ 1,796  684  637  —  3,117 
Apparel 904  311  119  —  1,334 
Beauty 703  405  —  —  1,108 
Accessories 598  153  —  —  751 
Jewelry 216  115  —  —  331 
Electronics 285  48  —  —  333 
Other revenue 116  3  —  —  119 
Total Net Revenue $ 4,618  1,719  756  —  7,093 
Other performance measures reviewed by the CODM are as follows:
Three months ended September 30, 2025
QxH QVC Int'l CBI Corporate and other Total
amounts in millions
Net Revenue $ 1,416  566  231  —  2,213 
Cost of goods sold (exclusive of depreciation and amortization) 944  373  144  —  1,461 
Gross profit 472  193  87  —  752 
Operating expense 106  46  10  —  162 
Advertising expense 78  9  39  —  126 
Selling, general and administrative expense (exclusive of stock-based compensation and advertising) 153  80  40  22  295 
Adjusted OIBDA $ 135  58  (2) (22) 169 
Nine months ended September 30, 2025
QxH QVC Int'l CBI Corporate and other Total
amounts in millions
Net Revenue $ 4,175  1,696  682  —  6,553 
Cost of goods sold (exclusive of depreciation and amortization) 2,767  1,102  400  —  4,269 
Gross profit 1,408  594  282  —  2,284 
Operating expense 324  136  29  —  489 
Advertising expense 201  27  123  —  351 
Selling, general and administrative expense (exclusive of stock-based compensation and advertising) 476  235  120  37  868 
Adjusted OIBDA $ 407  196  10  (37) 576 
Three months ended September 30, 2024
QxH QVC Int'l CBI Corporate and other Total
amounts in millions
Net Revenue $ 1,521  571  252  —  2,344 
Cost of goods sold (exclusive of depreciation and amortization) 997  369  151  —  1,517 
Gross profit 524  202  101  —  827 
Operating expense 121  44  10  —  175 
Advertising expense 62  8  46  —  116 
Selling, general and administrative expense (exclusive of stock-based compensation and advertising) 159  80  39  8  286 
Adjusted OIBDA $ 182  70  6  (8) 250 

Nine months ended September 30, 2024
QxH QVC Int'l CBI Corporate and other Total
amounts in millions
Net Revenue $ 4,618  1,719  756  —  7,093 
Cost of goods sold (exclusive of depreciation and amortization) 3,011  1,102  447  —  4,560 
Gross profit 1,607  617  309  —  2,533 
Operating expense 368  134  31  —  533 
Advertising expense 178  24  137  —  339 
Selling, general and administrative expense (exclusive of stock-based compensation and advertising) 500  237  110  23  870 
Adjusted OIBDA $ 561  222  31  (23) 791 
Other Information
September 30, 2025
Total assets Capital expenditures
amounts in millions
QxH (1) $ 4,657  67 
QVC International 1,897  21 
CBI 520  15 
Corporate and other 486  — 
Consolidated QVC Group $ 7,560  103 
(1) QxH Property and equipment, net as of September 30, 2025 excludes assets classified as assets held for sale in the condensed consolidated balance sheet.

The following table provides a reconciliation of Adjusted OIBDA to Operating income (loss) and Earnings (loss) before income taxes:
Three months ended
September 30,		 Nine months ended
September 30,
2025 2024 2025 2024
amounts in millions
Adjusted OIBDA $ 169  250  576  791 
Stock-based compensation (7) (3) (15) (22)
Depreciation and amortization (103) (95) (310) (290)
Impairment of goodwill and intangible assets —  —  (2,395) — 
Restructuring (benefits) costs 1  —  (56) (18)
Gain on sale leaseback transaction —  —  —  1 
Operating income (loss) 60  152  (2,200) 462 
Interest expense (134) (117) (363) (353)
Realized and unrealized gains (losses) on financial instruments, net (7) (36) (43) (53)
Other, net 25  1  35  22 
Earnings (loss) before income taxes $ (56) —  (2,571) 78