Quarterly report [Sections 13 or 15(d)]

Information about QVC's Operating Segments

v3.25.1
Information about QVC's Operating Segments
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Segment reporting disclosure Information about QVC's Operating Segments
The Company's chief operating decision maker ("CODM") is the Company's Chief Executive Officer who has ultimate responsibility for enterprise decisions. QVC's CODM determines, in particular, resource allocation for, and monitors performance of, the consolidated enterprise, QxH, and QVC International. The segment managers have responsibility for operating decisions, allocating resources and assessing performance within their respective segments. QVC's CODM relies on internal management reporting that analyzes enterprise results and segment results to the Adjusted OIBDA level (see below).
For the three months ended March 31, 2025 and 2024, QVC has identified QxH and QVC International as its two reportable segments. Both operating segments are retailers of a wide range of consumer products, which are marketed and sold primarily by merchandise-focused televised-shopping programs as well as via the internet and mobile applications in certain markets.
The Company evaluates performance and makes decisions about allocating resources to its operating segments based on financial measures such as net revenue, Adjusted OIBDA (defined below), gross margin, average sales price per unit, number of units shipped and revenue or sales per customer. For segment reporting purposes, the Company defines Adjusted OIBDA, as net revenue less cost of goods sold, operating expenses, and selling, general and administrative expenses (excluding stock-based compensation, and restructuring costs). The Company believes this measure is an important indicator of the operational strength and performance of its segments by identifying those items that are not directly a reflection of each segment's performance or indicative of ongoing business trends. In addition, this measure allows management to view operating results and perform analytical comparisons and benchmarking among the Company's businesses and identify strategies to improve performance. This measure of performance excludes depreciation, amortization, impairment losses, gains on sale of assets and sale-leaseback transactions, restructuring, and stock-based compensation that are included in the measurement of operating income pursuant to U.S. GAAP. Accordingly, Adjusted OIBDA should be considered in addition to, but not as a substitute for, operating income, net earnings (loss), cash flow provided by operating activities and other measures of financial performance prepared in accordance with U.S. GAAP. The segment presentation for prior periods has been conformed to the current period segment presentation.
Disaggregated revenue by segment and product category consisted of the following:
Three months ended March 31, 2025 Three months ended March 31, 2024
(in millions) QxH QVC Int'l Total QxH QVC Int'l Total
Home $ 538  223  761  589  237  826 
Apparel 258  99  357  282  108  390 
Beauty 211  120  331  239  129  368 
Accessories 173  46  219  201  48  249 
Electronics 89  15  104  108  15  123 
Jewelry 63  33  96  80  33  113 
Other revenue 36  1  37  40  2  42 
Total net revenue $ 1,368  537  1,905  1,539  572  2,111 

Performance measures
Three months ended March 31, 2025 Three months ended March 31, 2024
(in millions) QxH QVC-Int'l Total QxH QVC-Int'l Total
Net revenue $ 1,368  537  1,905  1,539  572  2,111 
Costs of goods sold (exclusive of depreciation and amortization) 923  348  1,271  1,007  366  1,373 
Segment gross profit 445  189  634  532  206  738 
Operating expense 111  43  154  125  45  170 
Advertising 55  8  63  53  7  60 
Selling, general and administrative, excluding stock-based compensation and advertising 157  75  232  169  79  248 
Adjusted OIBDA $ 122  63  185  185  75  260 
Other information
March 31, 2025
(in millions) Total
assets		 Capital
expenditures		 Property and equipment, net
QxH $ 7,891  25  235 
QVC International 1,784  5  153 
Consolidated QVC $ 9,675  30  388 
March 31, 2024
(in millions) Total
assets		 Capital
expenditures		 Property and equipment, net
QxH $ 9,582  22  254 
QVC International 1,793  10  153 
Consolidated QVC $ 11,375  32  407 
The following table provides a reconciliation of Adjusted OIBDA to operating income and income before income taxes:
Three months ended March 31,
(in millions) 2025 2024
Adjusted OIBDA $ 185  260 
Gain on sale leaseback transaction —  1 
Restructuring costs (57) — 
Stock-based compensation (4) (12)
Depreciation and amortization (95) (92)
Operating income 29  157 
Interest expense, net (60) (62)
Foreign currency gain (loss) (4) (1)
(Loss) earnings before income taxes $ (35) 94