Quarterly report [Sections 13 or 15(d)]

Information about QVC's Operating Segments

v3.25.3
Information about QVC's Operating Segments
 9 Months Ended
Sep. 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 nine months ended September 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 (benefits) 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 September 30, 2025 Nine months ended September 30, 2025
(in millions) QxH QVC Int'l Total QxH QVC Int'l Total
Home $ 570  227  797  1,635  683  2,318 
Apparel 283  106  389  840  317  1,157 
Beauty 204  128  332  623  386  1,009 
Accessories 174  52  226  527  154  681 
Jewelry 61  39  100  186  109  295 
Electronics 89  14  103  254  45  299 
Other revenue 35  —  35  110  2  112 
Total net revenue $ 1,416  566  1,982  4,175  1,696  5,871 
Three months ended September 30, 2024 Nine months ended September 30, 2024
(in millions) QxH QVC Int'l Total QxH QVC Int'l Total
Home $ 611  226  837  1,796  684  2,480 
Apparel 294  98  392  904  311  1,215 
Beauty 225  135  360  703  405  1,108 
Accessories 185  52  237  598  153  751 
Jewelry 63  43  106  216  115  331 
Electronics 104  17  121  285  48  333 
Other revenue 39  —  39  116  3  119 
Total net revenue $ 1,521  571  2,092  4,618  1,719  6,337 
Performance measures
Three months ended September 30, 2025 Nine months ended September 30, 2025
(in millions) QxH QVC-Int'l Total QxH QVC-Int'l Total
Net revenue $ 1,416  566  1,982  4,175  1,696  5,871 
Costs of goods sold (exclusive of depreciation and amortization) 944  373  1,317  2,767  1,102  3,869 
Segment gross profit 472  193  665  1,408  594  2,002 
Operating expense 106  46  152  324  136  460 
Advertising 78  9  87  201  27  228 
Selling, general and administrative, excluding stock-based compensation and advertising 153  80  233  476  235  711 
Adjusted OIBDA $ 135  58  193  407  196  603 
Three months ended September 30, 2024 Nine months ended September 30, 2024
(in millions) QxH QVC-Int'l Total QxH QVC-Int'l Total
Net revenue $ 1,521  571  2,092  4,618  1,719  6,337 
Costs of goods sold (exclusive of depreciation and amortization) 997  369  1,366  3,011  1,102  4,113 
Segment gross profit 524  202  726  1,607  617  2,224 
Operating expense 121  44  165  368  134  502 
Advertising 62  8  70  178  24  202 
Selling, general and administrative, excluding stock-based compensation and advertising 159  80  239  500  237  737 
Adjusted OIBDA $ 182  70  252  561  222  783 
Other information
September 30, 2025
(in millions) Total
assets		 Property and equipment, net
QxH1
$ 6,432  169 
QVC International 1,897  152 
Consolidated QVC $ 8,329  321 
(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.
December 31, 2024
(in millions) Total
assets		 Property and equipment, net
QxH $ 8,128  259 
QVC International 1,761  151 
Consolidated QVC $ 9,889  410 
September 30, 2025 September 30, 2024
(in millions) Capital expenditures Capital expenditures
QxH $ 67  89 
QVC International 21  29 
Consolidated QVC $ 88  118 

The following table provides a reconciliation of Adjusted OIBDA to operating income and earnings before income taxes:
Three months ended September 30, Nine months ended September 30,
(in millions) 2025 2024 2025 2024
Adjusted OIBDA $ 193  252  603  783 
Gain on sale leaseback transaction —  —  —  1 
Restructuring (benefits) costs
 1  —  (56) (18)
Impairment of goodwill and intangible assets —  —  (2,395) — 
Stock-based compensation (6) (1) (14) (15)
Depreciation and amortization (97) (87) (290) (267)
Operating income (loss) 91  164  (2,152) 484 
Interest expense, net (66) (62) (189) (191)
Foreign currency gain (loss) 1  (6) (12) (6)
Other income (expense) —  (7) —  (7)
Earnings (loss) before income taxes $ 26  89  (2,353) 280