Quarterly report [Sections 13 or 15(d)]

Information About QVC Group's Operating Segments

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Information About QVC Group's Operating Segments
 3 Months Ended
Mar. 31, 2026
Segment Reporting, Disclosure of Other Information about Entity's Reportable Segments [Abstract]  
Information About QVC Group's Operating Segments
(9) 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 QVC Group Chief Operating Decision Maker (“CODM”), 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 expenses (“SG&A”) and Adjusted OIBDA (as defined below), 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 total revenue, net less cost of goods sold, operating expenses, and SG&A 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) costs, pre-petition charges (primarily professional fees directly related to, and incurred prior to, the filing of the Chapter 11 Cases), and (gain) loss on sale of assets, 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 three months ended March 31, 2026, 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 2025 10-K.
Performance Measures
Disaggregated total revenue, net by segment and product category consisted of the following:
Three months ended
March 31, 2026
QxH QVC Int'l CBI Total
in millions
Home $ 497  223  147  867 
Apparel 247  96  41  384 
Beauty 179  115  —  294 
Accessories 147  48  —  195 
Jewelry 65  37  —  102 
Electronics 60  19  —  79 
Other revenue 36  —  —  36 
Total revenue, net $ 1,231  538  188  1,957 
Three months ended
March 31, 2025
QxH QVC Int'l CBI Total
in millions
Home $ 538  223  160  921 
Apparel 258  99  40  397 
Beauty 211  120  —  331 
Accessories 173  46  —  219 
Jewelry 63  33  —  96 
Electronics 89  15  —  104 
Other revenue 36  1  —  37 
Total revenue, net $ 1,368  537  200  2,105 
Other performance measures reviewed by the CODM are as follows:
Three months ended March 31, 2026
QxH QVC Int'l CBI Corporate and other Total
amounts in millions
Total revenue, net $ 1,231  538  188  —  1,957 
Cost of goods sold (excluding depreciation and amortization) 824  356  108  —  1,288 
Gross profit 407  182  80  —  669 
Operating expense 92  45  9  —  146 
Advertising expense 70  8  41  —  119 
SG&A (excluding stock-based compensation, advertising and pre-petition charges) 153  80  39  6  278 
Adjusted OIBDA $ 92  49  (9) (6) 126 
Three months ended March 31, 2025
QxH QVC Int'l CBI Corporate and other Total
amounts in millions
Total revenue, net $ 1,368  537  200  —  2,105 
Cost of goods sold (excluding depreciation and amortization) 923  348  115  —  1,386 
Gross profit 445  189  85  —  719 
Operating expense 111  43  9  —  163 
Advertising expense 55  8  39  —  102 
SG&A (excluding stock-based compensation, advertising and pre-petition charges) 157  75  41  4  277 
Adjusted OIBDA $ 122  63  (4) (4) 177 
Other Information
March 31, 2026 December 31, 2025
Total assets Property and equipment, net Total assets Property and equipment, net
amounts in millions
QxH (1)
$ 4,377  159  4,780  166 
QVC International 1,870  140  1,927  150 
CBI 473  85  495  85 
Corporate and other 355  —  441  — 
Consolidated QVC Group $ 7,075  384  7,643  401 
(1) QxH Property and equipment, net as of March 31, 2026 and December 31, 2025 excludes assets classified as assets held for sale in the condensed consolidated balance sheet.
March 31, 2026 March 31, 2025
Depreciation Amortization Capital Expenditures Depreciation Amortization Capital Expenditures
amounts in millions
QxH $ 9  52  28  28  55  25 
QVC International 6  7  4  6  6  5 
CBI 3  3  4  4  3  4 
Consolidated QVC Group $ 18  62  36  38  64  34 
The following table provides a reconciliation of Adjusted OIBDA to Operating income (loss) and Earnings (loss) before income taxes:
Three months ended
March 31,
2026 2025
amounts in millions
Adjusted OIBDA $ 126  177 
Depreciation and amortization (80) (102)
Gain (loss) on sale of assets 10  — 
Pre-petition charges (41) — 
Stock-based compensation —  (4)
Restructuring benefits (costs) —  (57)
Operating income (loss) 15  14 
Interest expense (132) (112)
Realized and unrealized gains (losses) on financial instruments, net 79  (15)
Interest and dividend income 12  8 
Other, net 1  2 
Earnings (loss) before income taxes $ (25) (103)