Executive Summary

Q1 2025 revenue was $1.905B, down 9.8% year over year (Q1 2024: $2.111B) as units shipped fell 7.6% and average selling price declined 1.8%; cost of goods sold rose to 66.7% of revenue, compressing gross margin .
Adjusted OIBDA fell to $185M (−28.8% YoY), operating income dropped to $29M (vs. $157M in Q1 2024), and net loss attributable to QVC, Inc. shareholder was −$42M (vs. +$51M in Q1 2024); restructuring from WIN strategy totaled $57M in the quarter .
Segment performance: QxH revenue −11.1% and QVC International −6.1% (−3.7% in constant currency); Adjusted OIBDA fell to $122M at QxH and $63M internationally .
Liquidity and capital: $863M revolver availability; 4.45% notes due 2025 repaid at maturity; Fitch downgraded QVC’s issuer rating to B− and senior secured rating to B+ during Q1 2025; dividend capacity constrained by leverage covenants .

What Went Well and What Went Wrong

What Went Well

Lower SG&A excluding advertising: SG&A fell $16M YoY driven by a $13M reduction in personnel costs at QxH (bonus plan and workforce changes) .
Returns improved: Estimated product returns decreased by $42M YoY, partially offsetting demand headwinds .
International category mix: In constant currency, QVC International saw shipped sales growth in electronics and jewelry even as overall revenue declined .
“WIN” strategy launched: Management emphasized “Wherever She Shops,” “Inspiring People & Products,” and “New Ways of Working” to broaden content and streamline operations—“we envisage content creation as an integrated, efficient process that adapts to various platforms” .

What Went Wrong

Demand softness and pricing mix: Units shipped fell 7.6% and ASP declined 1.8%, driving the top‑line contraction .
Gross margin pressure from logistics: COGS rose to 66.7% of revenue (vs. 65.0% in Q1 2024) due to higher warehouse and freight costs across segments .
Restructuring impact: WIN reorganization and accelerated depreciation from the HSN campus closure drove $57M of restructuring costs and $14M of incremental depreciation .
Leverage and ratings: Leverage restrictions limited dividends; Fitch downgraded ratings, highlighting refinancing and leverage risks .

Financial Results

Metric	Q2 2024	Q3 2024	Q1 2025
Revenue ($USD Millions)	$2,134	$2,092	$1,905
Operating Income ($USD Millions)	$163	$164	$29
Adjusted OIBDA ($USD Millions)	$271	$252	$185
Net (Loss) Earnings Attributable to QVC, Inc. Shareholder ($USD Millions)	$53	$51	$(42)
COGS as % of Revenue	64.4%	65.3%	66.7%
Gross Margin % (derived)	35.6% (2,134−1,374)/2,134	34.7% (2,092−1,366)/2,092	33.3% (1,905−1,271)/1,905

YoY comparison (Q1 2025 vs Q1 2024):

Revenue: $1,905M vs $2,111M (−9.8%)
COGS %: 66.7% vs 65.0% (+170 bps)
Operating income: $29M vs $157M
Net attributable: −$42M vs +$51M

Segment breakdown (Q1 2025 vs Q1 2024):

Segment	Q1 2024 Revenue ($MM)	Q1 2025 Revenue ($MM)	Change	Q1 2024 Adjusted OIBDA ($MM)	Q1 2025 Adjusted OIBDA ($MM)
QxH	$1,539	$1,368	−11.1%	$185	$122
QVC International	$572	$537	−6.1% (−3.7% CC)	$75	$63
Total	$2,111	$1,905	−9.8%	$260	$185

KPIs and cost lines (Q1 2025 vs Q1 2024):

KPI / Cost	Q1 2024	Q1 2025
Advertising Expense ($MM)	$60	$63
Operating Expense ($MM)	$170	$154
COGS ($MM)	$1,373	$1,271

Estimates vs actuals:

S&P Global consensus for Q1 2025 revenue and EPS was unavailable for QVCD; actual revenue reported $1.905B . Values retrieved from S&P Global.*

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Capital Expenditures ($USD Millions)	FY 2025	N/A	$151–$167	Initial range
Effective Tax Rate (%)	Q1 2025	N/A	5.7% (reported)	Informational
Revolver Availability ($USD Millions)	As of 3/31/2025	N/A	$863	Informational
Dividend Capacity	Ongoing	Unlimited subject to leverage	Restricted; leverage ratio >3.5× limits unrestricted dividends	Lowered flexibility

Note: No explicit revenue, margin, or segment guidance was provided in filings reviewed .

Earnings Call Themes & Trends

Call transcript was not available in our document system for Q1 2025; themes below reflect MD&A and filings.

Topic	Q2 2024 (Prior)	Q3 2024 (Prior)	Q1 2025 (Current)	Trend
Strategy shift	Project Athens: cost to serve, pricing, assortment optimization	Project Athens continued; category mix optimization	WIN strategy launched: content reach, social/streaming, process enhancements	From turnaround to growth focus
Operations footprint	Normal operations; Rocky Mount history	Sale-leasebacks; Rocky Mount impacts	Consolidation of QVC/HSN at Studio Park; closing St. Petersburg; $14M accel. depreciation	Streamlining; near‑term cost
Demand and pricing	Units shipped −2.4%; ASP +0.6% (QxH)	Units shipped −3.9%; ASP −1.2%	Units shipped −7.6%; ASP −1.8%	Weakening volume and price mix
Logistics costs	Freight favorability at QxH	Higher warehouse costs	Higher warehouse and freight costs	Cost pressure intensifying
International FX	Unfavorable FX impacted revenue	Mixed FX impacts	FX headwind (International −6.1% USD; −3.7% CC)	Persistent FX drag
Tariffs/Macro	Inflation; macro uncertainty	Inflation; macro uncertainty	New baseline tariffs; higher China tariffs risk; inflationary pressures	Macro risk up

Management Commentary

“On November 14, 2024 QVC announced the WIN strategy… to broaden content outreach… and streamline operations and fuel innovation” .
“On January 29, 2025, the Company announced the consolidation of its QVC and HSN operations… and the closing of the St. Petersburg, FL campus” .
QxH decline driven by “a 9.6% decrease in units shipped and a 1.8% decrease in ASP,” partially offset by lower returns .
Cost structure: “increase in cost of goods sold as a percentage of revenue… due to higher warehouse and freight costs across both segments” .

Q&A Highlights

The Q1 2025 earnings call transcript was not available in our corpus; no Q&A themes could be extracted.

Estimates Context

S&P Global consensus estimates for QVCD (QVC, Inc.) Q1 2025 EPS and revenue were unavailable; we therefore benchmark actuals only. Values retrieved from S&P Global.*

Where estimates are unavailable, we expect the sell‑side to lower revenue and OIBDA assumptions given volume softness, margin pressure from logistics, and restructuring charges .

Key Takeaways for Investors

Volume and pricing remain the core headwind: Units shipped and ASP declines drove a 9.8% revenue drop; expect cautious near‑term demand and potential category rebalancing .
Margin watch: COGS % rose to 66.7% on warehouse/freight costs; logistics cost normalization would be a key margin lever; absent that, OIBDA pressure likely persists .
WIN strategy should be viewed as medium‑term: Near‑term costs (restructuring, accelerated depreciation) are pressuring P&L; benefits hinge on content reach and operational efficiency execution .
Liquidity adequate, but leverage constrains flexibility: $863M availability provides runway; leverage covenants limit unrestricted dividends and ratings were downgraded, raising the bar on deleveraging .
International: Constant currency resilience in select categories but FX and ASP pressure persist; monitor electronics/jewelry growth vs apparel/beauty softness .
Tariffs/macros are new catalysts: Baseline and China‑specific tariffs, inflation, and shipping disruptions are incremental risks to cost structure and price positioning .
Trading lens: Watch upcoming quarters for signs of unit stabilization, return improvement continuity, logistics cost relief, and opex discipline; any positive inflection could re‑rate OIBDA trajectory .

Footnote: *Values retrieved from S&P Global.

QVC INC (QVCD)·Q1 2025 Earnings Summary