Quarterly report [Sections 13 or 15(d)]

Information about QVC's Operating Segments

v3.25.2
Information about QVC's Operating Segments
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segment reporting disclosure
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 and six months ended June 30, 2025 and 2024, QVC has identified QxH and QVC International as its two operating segments. Both operating segments (which are also the reportable 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 (including social media) 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 of goodwill and intangible assets, 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 June 30, 2025 Six months ended June 30, 2025
(in millions) QxH QVC Int'l Total QxH QVC Int'l Total
Home $ 527  233  760  1,065  456  1,521 
Apparel 299  112  411  557  211  768 
Beauty 208  138  346  419  258  677 
Accessories 180  56  236  353  102  455 
Jewelry 62  37  99  125  70  195 
Electronics 76  16  92  165  31  196 
Other revenue 39  1  40  75  2  77 
Total net revenue $ 1,391  593  1,984  2,759  1,130  3,889 
Three months ended June 30, 2024 Six months ended June 30, 2024
(in millions) QxH QVC Int'l Total QxH QVC Int'l Total
Home $ 596  221  817  1,185  458  1,643 
Apparel 328  105  433  610  213  823 
Beauty 239  141  380  478  270  748 
Accessories 212  53  265  413  101  514 
Jewelry 73  39  112  153  72  225 
Electronics 73  16  89  181  31  212 
Other revenue 37  1  38  77  3  80 
Total net revenue $ 1,558  576  2,134  3,097  1,148  4,245 
Performance measures
Three months ended June 30, 2025 Six months ended June 30, 2025
(in millions) QxH QVC-Int'l Total QxH QVC-Int'l Total
Net revenue $ 1,391  593  1,984  2,759  1,130  3,889 
Costs of goods sold (exclusive of depreciation and amortization) 900  381  1,281  1,823  729  2,552 
Segment gross profit 491  212  703  936  401  1,337 
Operating expense 107  47  154  218  90  308 
Advertising 68  10  78  123  18  141 
Selling, general and administrative, excluding stock-based compensation and advertising 166  80  246  323  155  478 
Adjusted OIBDA $ 150  75  225  272  138  410 
Three months ended June 30, 2024 Six months ended June 30, 2024
(in millions) QxH QVC-Int'l Total QxH QVC-Int'l Total
Net revenue $ 1,558  576  2,134  3,097  1,148  4,245 
Costs of goods sold (exclusive of depreciation and amortization) 1,007  367  1,374  2,014  733  2,747 
Segment gross profit 551  209  760  1,083  415  1,498 
Operating expense 122  45  167  247  90  337 
Advertising 63  9  72  116  16  132 
Selling, general and administrative, excluding stock-based compensation and advertising 172  78  250  341  157  498 
Adjusted OIBDA $ 194  77  271  379  152  531 
Other information

June 30, 2025
(in millions) Total
assets		 Capital
expenditures		 Property and equipment, net
QxH $ 5,476  49  215 
QVC International 1,899  14  158 
Consolidated QVC $ 7,375  63  373 
June 30, 2024
(in millions) Total
assets		 Capital
expenditures		 Property and equipment, net
QxH $ 9,493  61  252 
QVC International 1,748  20  146 
Consolidated QVC $ 11,241  81  398 
The following table provides a reconciliation of Adjusted OIBDA to operating income and earnings before income taxes:
Three months ended June 30, Six months ended June 30,
(in millions) 2025 2024 2025 2024
Adjusted OIBDA $ 225  271  410  531 
Gain on sale leaseback transaction —  —  —  1 
Restructuring costs
 —  (18) (57) (18)
Impairment of goodwill and intangible assets (2,395) —  (2,395) — 
Stock-based compensation (4) (2) (8) (14)
Depreciation and amortization (98) (88) (193) (180)
Operating income (loss) (2,272) 163  (2,243) 320 
Interest expense, net (63) (67) (123) (129)
Foreign currency gain (loss) (9) 1  (13) — 
Earnings (loss) before income taxes $ (2,344) 97  (2,379) 191