QVC Group A 2025 Q2 Earnings Sharp Net Loss Amid Revenue Decline

QVC Group A reported a significant net loss in Q2 2025, missing expectations amid a 7.1% revenue decline. The company swung to a net loss of $2.21 billion, a 7003.1% drop from Q2 2024. No guidance was provided, and management emphasized ongoing challenges in its transformation strategy.

Revenue
The company reported total revenue of $2.24 billion, a 7.1% decline from $2.41 billion in the prior-year period. Within the U.S. QVC eXperience & Home (QxH) segment, revenue fell 11% primarily due to a 13% drop in units shipped and lower shipping and handling revenue, though a 1% increase in average selling price and favorable return rates partially offset the decline. The electronics category saw growth, while all other categories posted declines. QVC International revenue rose 3% in U.S. dollars but fell 3% in constant currency due to a 3% decrease in units shipped and a 2% drop in average selling price, partially offset by favorable return rates. Revenue in apparel and accessories remained flat, while beauty, jewelry, and electronics saw declines. Cornerstone revenue decreased 8% due to continued softness in interior furniture, outdoor furniture, and decor.

Earnings/Net Income
QVC Group A posted a net loss of $2.21 billion in Q2 2025, a 7003.1% deterioration from a net income of $32 million in Q2 2024. The loss per share was $275.46, compared to $2.57 in the prior year, a 10818.3% negative change. The operating loss of $2.3 billion was driven by a $2.4 billion non-cash impairment charge related to goodwill and tradenames. Despite the decline in revenue, the company maintained a double-digit Adjusted OIBDA margin. The earnings performance indicates a significant deterioration in profitability, highlighting the challenges in the transformation strategy.

Price Action
The stock of QVC Group A surged 11.76% during the latest trading day, marking a strong short-term rebound. However, over the past full trading week, the stock tumbled 11.86%. Month-to-date, it has posted a 17.93% gain, showing a volatile but ultimately positive trend over the past 30 days.

Post-Earnings Price Action Review
The buy-and-hold strategy of purchasing QVC Group A shares after the company posted a revenue increase quarter-over-quarter and holding for 30 days has shown historically strong performance. Over the past three years, this approach generated an 87.33% return, outperforming the benchmark by 37.93%. The strategy also delivered a 23.55% compound annual growth rate with zero maximum drawdown, indicating strong profitability and minimal downside risk. The positive return underscores the potential for strategic investing following key earnings reports, even amid broader financial challenges.

CEO Commentary
CEO David Rawlinson acknowledged the challenging environment, noting continued decline in linear television, volatile consumer confidence, and uncertainty in international trade. Despite the revenue decline, the company achieved a double-digit Adjusted OIBDA margin, made progress on its WIN strategy by growing its social and streaming business to near double-digits as a percentage of QxH revenue, diversified sourcing to mitigate tariff risks, and completed the transition of HSN to the Studio Park campus. He expressed confidence in the long-term growth plan despite the need for time to realize full benefits.

Guidance
No guidance was provided in the earnings report.

Additional News
QVC Group announced the removal of Cornerstone as a borrower under its credit agreement effective April 1, 2025, impacting its leverage calculations. The company also reported a $975 million borrowing in July 2025 under its bank credit facility, increasing total drawn availability to $1.93 billion as of June 30. QVC Group’s leverage ratio stood at 3.9x at quarter-end, with the consolidated leverage ratio exceeding 3.5x, restricting its ability to make unlimited dividends. The company remains in compliance with all debt covenants. Additionally, QVC Group plans to discuss its financial results in a conference call on August 7, 2025.