Quarterly report [Sections 13 or 15(d)]

Information about QVC's Operating Segments

v3.26.1
Information about QVC's Operating Segments
 3 Months Ended
Mar. 31, 2026
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 (defined below).
For the three months ended March 31, 2026 and 2025, 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 total revenue, net, 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 total revenue, net 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. 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 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 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.
Disaggregated revenue by segment and product category consisted of the following:
Three months ended March 31, 2026 Three months ended March 31, 2025
(in millions) QxH QVC-International Total QxH QVC-International Total
Home $ 497  223  720  538  223  761 
Apparel 247  96  343  258  99  357 
Beauty 179  115  294  211  120  331 
Accessories 147  48  195  173  46  219 
Jewelry 65  37  102  63  33  96 
Electronics 60  19  79  89  15  104 
Other revenue 36  —  36  36  1  37 
Total net revenue $ 1,231  538  1,769  1,368  537  1,905 
Performance measures
Three months ended March 31, 2026 Three months ended March 31, 2025
(in millions) QxH QVC-Int'l Total QxH QVC-Int'l Total
Total revenue, net $ 1,231  538  1,769  1,368  537  1,905 
Costs of goods sold (excluding depreciation and amortization) 824  356  1,180  923  348  1,271 
Segment gross profit 407  182  589  445  189  634 
Operating expense 92  45  137  111  43  154 
Advertising 70  8  78  55  8  63 
Selling, general and administrative (excluding stock-based compensation, advertising and pre-petition charges) 153  80  233  157  75  232 
Adjusted OIBDA $ 92  49  141  122  63  185 

Other information
March 31, 2026
(in millions) Total
assets		 Property and equipment, net
QxH1
$ 6,120  159 
QVC International 1,870  140 
Consolidated QVC $ 7,990  299 
(1) QxH Property and equipment, net as of March 31, 2026 excludes assets classified as assets held for sale in the condensed consolidated balance sheet.
March 31, 2025
(in millions) Total
assets		 Property and equipment, net
QxH $ 7,891  235 
QVC International 1,784  153 
Consolidated QVC $ 9,675  388 
March 31, 2026 March 31, 2025
(in millions) Capital expenditures Capital expenditures
QxH $ 28  25 
QVC International 4  5 
Consolidated QVC $ 32  30 
March 31, 2026 March 31, 2025
(in millions) Depreciation Amortization Depreciation Amortization
QxH $ 9  52  28  55 
QVC International 6  7  6  6 
Consolidated QVC $ 15  59  34  61 
The following table provides a reconciliation of Adjusted OIBDA to operating income and earnings before income taxes:
Three months ended March 31,
(in millions) 2026 2025
Adjusted OIBDA $ 141  185 
Depreciation and amortization (74) (95)
(Gain) loss on sale of assets 10  — 
Pre-petition charges (21) — 
Stock-based compensation —  (4)
Restructuring benefits (costs)
 —  (57)
Operating income (loss) 56  29 
Interest expense (76) (64)
Interest income 11  4 
Other income (expense) 1  (4)
Earnings (loss) before income taxes $ (8) (35)