Q2 2025 QVC Group Inc Earnings Call

August 7, 2025

Operator: Greetings. Welcome to QVC Group's Q2 2025 Earnings Call. It is now my pleasure to hand the call over to Jessica Donati.

Jessica Donati: Thank you, and good morning. Before we begin, we'd like to remind you that this call includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual events or results could differ materially due to a number of risks and uncertainties, including those mentioned in the most recent Form 10-K and Form 10-Q filed by QVC Group and QVC with the SEC. These forward-looking statements speak only as of the date of this call, and QVC expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in QVC Group's expectations with regard thereto, or any change in events, conditions, or circumstances on which any such statement is based. Please note that we have published slides to accompany the earnings release.

Greetings. Welcome to the QVC Group, Inc. second quarter 2025 earnings call. It is now my pleasure to hand the call over to Jessica Donati.

Thank you and good morning.

Before we begin, we'd like to remind you that this call includes certain forward-looking statements within the meaning of the private Securities. Litigation Reform, Act of 1995.

Actual events or results could differ materially due to a number of risks and uncertainties.

Recent forms 10K, and 10 Q.

Filed by QVC group and QVC with the SEC.

These forward-looking statements speak only as a date of the date of this call and QVC expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained. Herein to reflect any change in QBC groups, expectations with regard there, too or any change in events conditions, or circumstances on which any such statement is based.

Jessica Donati: On today's call, we will discuss certain non-GAAP financial measures, including adjusted OIBDA, adjusted OIBDA margin, free cash flow, and constant currency. Information regarding the comparable GAAP metrics, along with required definitions and reconciliations, including preliminary note and schedules 1 and 2, can be found in the earnings press release issued today or our earnings presentation, which are available on our website. Today, speaking on the earnings call, we have QVC Group President and CEO David Rawlinson, QVC Group CFO and CAO Bill Wafford, and QVC Group Executive Chairman Greg Maffei. Following today's presentation, we will address questions that were submitted in advance of the call. There will be no live Q&A session. Now I'll hand the call over to David Rawlinson.

Please note that we have published slides to accompany the earnings release.

On today's call we will discuss certain non-gaap Financial measures including adjusted oea. Adjusted oea margin.

Free cash flow and constant currency.

Information regarding the comparable, gaap metrics along, with required, definitions and reconciliations, including preliminary note and schedules 1 and 2 can be found in the earnings press release issued today, or our earnings presentation, which are available on our website.

Today, speaking on the earnings call, we have QVC group president and CEO David Rawlinson.

QVC Group CFO and CAO, Bill Walford, and QVC Group Executive Chairman, Greg May.

Following today's presentation, we will address questions that were submitted in advance of the call. There will be no live Q&A session.

David Rawlinson II: Thank you, and good morning, everyone. We appreciate you joining us and your continued interest in QVC Group. Coming off a challenging Q1, we continue to manage through what has proven to be a difficult macro environment in Q2. Namely, we continue to experience declining linear TV viewership as well as ongoing volatility in consumer confidence. QxH minutes viewed declined 15% in the second quarter. Declining consumer confidence in the earlier part of the second quarter was primarily driven by international economic policies and geopolitical events. Our implementation of key initiatives to strengthen our capital structure for the long term remains ongoing. At the same time, we are acutely focused on moving the business forward and implementing our win strategy to drive the future of live social shopping. To this end, we continue to advance the number of cost-cutting efforts and accomplish various milestones this quarter.

David Rawlinson: Thank you, and good morning, everyone. We appreciate you joining us and your continued interest in QVC Group. Coming off a challenging Q1, we continue to manage through what has proven to be a difficult macro environment in Q2. Namely, we continue to experience declining linear TV viewership as well as ongoing volatility in consumer confidence. QxH minutes viewed declined 15% in the second quarter. Declining consumer confidence in the earlier part of the second quarter was primarily driven by international economic policies and geopolitical events. Our implementation of key initiatives to strengthen our capital structure for the long term remains ongoing. At the same time, we are acutely focused on moving the business forward and implementing our win strategy to drive the future of live social shopping. To this end, we continue to advance the number of cost-cutting efforts and accomplish various milestones this quarter.

Now, I'll hand the call over to David Rawlinson.

Thank you and good morning everyone. We appreciate you joining us in your continued interest in QVC group.

Coming off a challenge. In q1. We continue to manage through what is proven to be a difficult macro environment. In Q2, namely, we continue to experience declining, linear TV viewership as well as ongoing volatility in consumer confidence.

QX minutes view decline, 15% in the second quarter.

Declining consumer confidence in the earlier. Part of the second quarter was primarily driven by International economic policies and geopolitical events, our implementation of key initiatives to strengthen, our capital structure for the long term remains ongoing at the same time, we are acutely focused on moving the business forward and implementing our wind strategy to drive the future of live social shopping.

David Rawlinson II: In late June, we successfully completed the transition of HSN's operations to Studio Park in West Chester, Pennsylvania, bringing our five US TV channels across HSN and QVC under one roof. In total, we now feature 52 hours of linear content a day. This will not only generate cost reductions but is also a major milestone in our WIN Growth Strategy and a testament to the dedication of our team. With a single headquarters for QVC and HSN, we believe we are in a much stronger position to efficiently create content for multiple platforms. To keep our customers engaged through this transition, particularly for our avid and elite customers, HSN launched Hello HSN PA, a month-long marketing campaign across all of our touchpoints.

David Rawlinson: In late June, we successfully completed the transition of HSN's operations to Studio Park in West Chester, Pennsylvania, bringing our five US TV channels across HSN and QVC under one roof. In total, we now feature 52 hours of linear content a day. This will not only generate cost reductions but is also a major milestone in our WIN Growth Strategy and a testament to the dedication of our team. With a single headquarters for QVC and HSN, we believe we are in a much stronger position to efficiently create content for multiple platforms. To keep our customers engaged through this transition, particularly for our avid and elite customers, HSN launched Hello HSN PA, a month-long marketing campaign across all of our touchpoints.

To this end, we continue to advance the number of cost cutting efforts and accomplish. Various Milestones. This quarter in late June, we successfully completed the transition of hsn's operations to Studio Park in West, Chester Pennsylvania, bringing our 5 us TV channels across HSN and QVC under 1 roof

In total, we now feature 52 hours of linear content a day.

This will not only generate cost reductions but is also a major milestone in our wind growth strategy and a testament to the dedication of our team with a single headquarters for QVC and HSN. We believe we are in a much stronger position to efficiently, create content for multiple platforms.

David Rawlinson II: We brought our customers with us on this exciting journey through moving-theme programming and deals, shout-outs in our top-rated shows, behind-the-scenes social clips with our host, and much, much more. Hello HSN PA culminated in a blowout housewarming party in late July. More than 130 customers joined our host and guest in person at our new Studio H in West Chester, and we broadcast the party live to the entire HSN community. As HSN President Stacy Bowe told customers in an open letter, "HSN may have a new address, but the HSN they know and love isn't going anywhere. The fun is here to stay." We also welcomed 11 of our HSN hosts to Studio Park, and three others will commute to Pennsylvania for the remainder of the year.

David Rawlinson: We brought our customers with us on this exciting journey through moving-theme programming and deals, shout-outs in our top-rated shows, behind-the-scenes social clips with our host, and much, much more. Hello HSN PA culminated in a blowout housewarming party in late July. More than 130 customers joined our host and guest in person at our new Studio H in West Chester, and we broadcast the party live to the entire HSN community. As HSN President Stacy Bowe told customers in an open letter, "HSN may have a new address, but the HSN they know and love isn't going anywhere. The fun is here to stay." We also welcomed 11 of our HSN hosts to Studio Park, and three others will commute to Pennsylvania for the remainder of the year.

To keep our customers engaged through this transition, particularly for our Avid and Elite customers HSN launched. Hello HSN PA, a month-long marketing campaign, across all of our touch points. We brought our customers with us on this exciting journey, through moving thing, programming and Deals. Shout outs in our top rated shows behind the scenes, social Clips, with our host and much much more.

Hello HSN PA culminated in a blowout housewarming party in Late. July more than 130 customers. Joined our hosts and guests in person at our new Studio, H in Westchester and we broadcast the party live to the entire HSN community.

David Rawlinson II: In addition, we continue to take strategic steps to diversify our sourcing and reduce our dependence on any single country and related tariff pressures. During our last call, we mentioned monitoring the tariff impact, being prudent about placing new orders, and canceling certain orders with high-tariffed countries, actively sourcing from new countries, negotiating with vendors to share any tariff impacts, and potentially taking price action when necessary. In June, we launched Christmas in July, a large home decor event with items largely sourced from countries impacted by tariffs. Although the tariff rates varied, we did not see significant impact to demand for items with tariff price adjustments. Our longer-term strategy of sourcing diversification continues, and as we shared last quarter, we are still targeting that no single country will represent more than 1/3 of our sourced goods in the US by the end of the year.

David Rawlinson: In addition, we continue to take strategic steps to diversify our sourcing and reduce our dependence on any single country and related tariff pressures. During our last call, we mentioned monitoring the tariff impact, being prudent about placing new orders, and canceling certain orders with high-tariffed countries, actively sourcing from new countries, negotiating with vendors to share any tariff impacts, and potentially taking price action when necessary. In June, we launched Christmas in July, a large home decor event with items largely sourced from countries impacted by tariffs. Although the tariff rates varied, we did not see significant impact to demand for items with tariff price adjustments. Our longer-term strategy of sourcing diversification continues, and as we shared last quarter, we are still targeting that no single country will represent more than 1/3 of our sourced goods in the US by the end of the year.

As they test in President, Stacy Boto customers in an open letter, HSN may have a new address, but the HSN they know and love isn't going anywhere. The button is here to stay. We also welcome 11 of our HSN hosts to Studio Park, and 3 others will commute to Pennsylvania for the remainder of the year.

In addition, we continue to take strategic strategic steps to diversify, our sourcing, and reduce our dependence on any single country and related tariff pressures during our last call, we mentioned monitoring the Tariff impact being prudent about placing new orders and canceling certain orders with high tariff countries.

Ing from new countries.

Negotiating with vendors to share any tariff impacts and potentially taking price action when necessary.

In June, we launched Christmas in July, a large home decor event with items, largely sourced from countries impacted by tariffs.

Although the Tariff rates buried, we did not see significant impact to demand for items with tariff price adjustments.

David Rawlinson II: As a reminder, at the end of 2024, we committed to finding an additional $100 million worth of OIBDA opportunities by examining all areas of spending across the company. In Q2, we saw the favorable impact of our organizational changes and our expenses. We also saw the benefits from our IT outsourcing initiative, allowing us to reinvest in marketing and technology that drives our growth businesses. Also, we completed the operational move of HSN, including standing up a new content organization and merchandise function. Returning our company to growth continues to be difficult as certain macroeconomic challenges persist. It will take time to ramp up. However, we believe the current strategy we have in place, our WIN Growth Strategy, is the right one and is already delivering results.

David Rawlinson: As a reminder, at the end of 2024, we committed to finding an additional $100 million worth of OIBDA opportunities by examining all areas of spending across the company. In Q2, we saw the favorable impact of our organizational changes and our expenses. We also saw the benefits from our IT outsourcing initiative, allowing us to reinvest in marketing and technology that drives our growth businesses. Also, we completed the operational move of HSN, including standing up a new content organization and merchandise function. Returning our company to growth continues to be difficult as certain macroeconomic challenges persist. It will take time to ramp up. However, we believe the current strategy we have in place, our WIN Growth Strategy, is the right one and is already delivering results.

Our longer-term strategy of sourcing diversification continues, and as we shared last quarter, we are still targeting that. No single country, will represent more than 1/3 of our sourced Goods in the US by the end of the year.

As a reminder at the end of 2024, we committed to finding an additional hundred million dollars worth of void opportunities by examining all areas of spending across the company.

In Q2, we saw the favorable impact of our organizational changes in our expenses.

We also saw the benefits from our. It Outsourcing initiative allowing us to reinvest in marketing and technology that drives our growth businesses.

also, we completed the operational move of HSN, including standing up, a new content, organization and merchandise function,

David Rawlinson II: I'd like to walk through some of the wins we saw just this quarter and why we're excited for what is to come. Our social and streaming channels continue to grow, and we estimate that the percentage of QxH revenue that was attributable during Q2 through these platforms is approaching double digits. This is an increase from what we saw in Q1. Social and streaming revenue experienced over 30% growth versus Q2 of 2024. As we will discuss more fully below, Q2 experienced substantial growth in new social customers, with well over 100,000 new customers finding us through TikTok Shop alone. In streaming, we continue to expand content and distribution. QVC and HSN recently joined Filo, a popular live TV streaming service with approximately 1.3 million paid subscribers. This launch reflects our strategic initiative to drive live shopping content to everywhere customers are spending their time.

David Rawlinson: I'd like to walk through some of the wins we saw just this quarter and why we're excited for what is to come. Our social and streaming channels continue to grow, and we estimate that the percentage of QxH revenue that was attributable during Q2 through these platforms is approaching double digits. This is an increase from what we saw in Q1. Social and streaming revenue experienced over 30% growth versus Q2 of 2024. As we will discuss more fully below, Q2 experienced substantial growth in new social customers, with well over 100,000 new customers finding us through TikTok Shop alone. In streaming, we continue to expand content and distribution. QVC and HSN recently joined Filo, a popular live TV streaming service with approximately 1.3 million paid subscribers. This launch reflects our strategic initiative to drive live shopping content to everywhere customers are spending their time.

Returning, our company to growth continues to be difficult as certain macroeconomic challenges. Persist, it will take time to ramp up, however we believe the current strategy we have in place our wind growth strategy is the right 1 and is already delivering results. I'd like to walk through some of the Winds. We saw just this quarter and while we're excited for what is to come

Our social and streaming channels continue to grow and we estimate that. The percentage of QX Revenue, that was attributable during Q2 through these platforms is approaching double digits. This is an increase from what we saw in q1.

Social and streaming Revenue experienced over 30% growth versus Q2 of 2024. As we will discuss more fully below Q2 experience substantial growth and new social customers with well over 100,000 new customers finding us through Tik Tok shop alone.

In streaming, we can continue to expand content and distribution.

David Rawlinson II: We also recently launched an ad-supported version of QVC 2 on several leading FAST platforms. Additionally, season two of Busy This Week, on streaming, is off to a strong start. Season two reached over 1 million households, 80% of which were new. In fact, in Q2, streaming monthly active users grew over 80% to nearly 1.5 million users, and streaming minutes watched grew 25% in the quarter. Building off the strategic agreement we discussed last quarter with TikTok, we hosted our first TikTok Shop Super Brand Day, kicking off the second year of the Age of Possibility. Over 80 of our top affiliate creators joined us for the event, along with 40 of our Q50 ambassadors, including Hoda Kotb, Jennie Garth, Billie Jean King, and more. The event was our highest-viewed and most engaged QVC-hosted live stream today.

David Rawlinson: We also recently launched an ad-supported version of QVC 2 on several leading FAST platforms. Additionally, season two of Busy This Week, on streaming, is off to a strong start. Season two reached over 1 million households, 80% of which were new. In fact, in Q2, streaming monthly active users grew over 80% to nearly 1.5 million users, and streaming minutes watched grew 25% in the quarter. Building off the strategic agreement we discussed last quarter with TikTok, we hosted our first TikTok Shop Super Brand Day, kicking off the second year of the Age of Possibility. Over 80 of our top affiliate creators joined us for the event, along with 40 of our Q50 ambassadors, including Hoda Kotb, Jennie Garth, Billie Jean King, and more. The event was our highest-viewed and most engaged QVC-hosted live stream today.

QVC and HSN recently joined a popular live TV streaming service with approximately 1.3 million paid subscribers. This launch reflects our strategic initiative to drive live shopping content to everywhere customers are spending their time.

We also recently launched an ad supported version of qvc2 on several leading fast platforms.

Additionally, season 2 of busy this week on streaming is off to a strong start season 2 reached over 1 million households 80% of, which were new in fact, in Q2

Streaming monthly active users grew over 80% to nearly 1.5 million users and streaming minutes. Watched grew 25% in the quarter.

Building off the Strategic agreement. We discussed last quarter with Tik Tok, we hosted our first Tik Tok. Sorry. First, we hosted our first Tik Tok shop, super brand day kicking off the second year of the age of possibility.

Over 80 of our top affiliate creators joined us for the event, along with 40 of our Q50 ambassadors, including Hoda Kotb, Jennie, Garth, Billie Jean King, and more. The event was our highest viewed and most engaged QBC-hosted live stream to date.

David Rawlinson II: We are integrating TikTok creators into customer events like QVC's Foodie Fest and are seeing the success of our push into the ever-crucial streaming and social businesses. We now have 8.4 million followers across all of our social media accounts, a 700,000 increase from last quarter. We've uploaded our full QVC catalog into Meta Shop for a seamless shopping experience on Facebook and Instagram. Notwithstanding the successful accomplishments we achieved this past quarter, given QVC Group's unique business model, certain elements of the tougher macro environment continue to apply pressure on our business. Total revenue declined in Q2 by 9% in constant currency. QxH revenue declined 11%. QVC International revenue declined 3% in constant currency, and Cornerstone revenue declined 8%.

David Rawlinson: We are integrating TikTok creators into customer events like QVC's Foodie Fest and are seeing the success of our push into the ever-crucial streaming and social businesses. We now have 8.4 million followers across all of our social media accounts, a 700,000 increase from last quarter. We've uploaded our full QVC catalog into Meta Shop for a seamless shopping experience on Facebook and Instagram. Notwithstanding the successful accomplishments we achieved this past quarter, given QVC Group's unique business model, certain elements of the tougher macro environment continue to apply pressure on our business. Total revenue declined in Q2 by 9% in constant currency. QxH revenue declined 11%. QVC International revenue declined 3% in constant currency, and Cornerstone revenue declined 8%.

We are integrating Tik Tok creators into Customer Events, like QVC's foodie Fest and are seeing the success of our push into the ever crucial streaming and social businesses.

We now have 8.4 million followers across all of our social media accounts, a 700,000 increase from last quarter.

And we've uploaded our full QVC, catalog into meta shop for a seamless shopping experience on Facebook and Instagram.

The past quarter giving QVC groups unique business models. Certain elements of the tougher macro environment continued to apply pressure on our business.

David Rawlinson II: As a result of top-line softness, consolidated Adjusted OIBDA declined 19% in constant currency in Q2, an improvement from Q1, which was down 31% versus last year. While these results are not yet where we want them to be, we are working to remain agile as we navigate the current landscape. Drilling down on our capital structure, thanks to the hard work of everyone at QVC Group, over the past few years, we've made meaningful progress in reducing our net debt by over $1.5 billion since the end of 2021. Our goal is to create more flexibility for our transformation and put ourselves on the strongest and most sustainable path forward. Improving gross margins and aggressively managing costs also continue to be top of mind.

David Rawlinson: As a result of top-line softness, consolidated Adjusted OIBDA declined 19% in constant currency in Q2, an improvement from Q1, which was down 31% versus last year. While these results are not yet where we want them to be, we are working to remain agile as we navigate the current landscape. Drilling down on our capital structure, thanks to the hard work of everyone at QVC Group, over the past few years, we've made meaningful progress in reducing our net debt by over $1.5 billion since the end of 2021. Our goal is to create more flexibility for our transformation and put ourselves on the strongest and most sustainable path forward. Improving gross margins and aggressively managing costs also continue to be top of mind.

total revenue declined in Q2, by 9% in constant currency, qx8 Revenue declined, 11% QVC, International Revenue declined, 3% in constant currency in, Cornerstone Revenue declined, 8%

As a result of topline softness, consolidated adjusted oil and Vida declined 19% in constant currency in the second quarter. This improvement from the first quarter, which was down 31% versus last year.

While these results are not year-old, not yet where we want them to be, we are working to remain agile as we navigate the current landscape.

Drilling down on our capital structure. Thanks to the hard work of everyone at QVC group over the past few years. We've made meaningful progress in reducing our net debt by over 1.5 billion since the end of 2021. Our goal is to create more flexibility for our transformation and put ourselves on the strongest and most sustainable path forward.

David Rawlinson II: As you can see on slide 8 in our presentation, on a trailing 12-month basis, customer count declined on a sequential basis with a decrease of approximately 3% versus March 2025. Please note, this does not include any new customers purchasing through our TikTok Shop. Existing customers continue to purchase at healthy levels, spending on average $1,622 and purchasing 31 items in the 12 months ended 30 June. And at QVC, our best customers, who buy 20 or more items annually, also continue to purchase at very attractive levels. In the 12 months ending 30 June, they bought 76 items and spent $300, $990 on average, up approximately 1% versus last year. Total QxH customer count declined 12% in the quarter, driven by a 10% decrease in existing customers, a 21% decrease in new, and a 16% decrease in reactivated customers.

David Rawlinson: As you can see on slide 8 in our presentation, on a trailing 12-month basis, customer count declined on a sequential basis with a decrease of approximately 3% versus March 2025. Please note, this does not include any new customers purchasing through our TikTok Shop. Existing customers continue to purchase at healthy levels, spending on average $1,622 and purchasing 31 items in the 12 months ended 30 June. And at QVC, our best customers, who buy 20 or more items annually, also continue to purchase at very attractive levels. In the 12 months ending 30 June, they bought 76 items and spent $300, $990 on average, up approximately 1% versus last year. Total QxH customer count declined 12% in the quarter, driven by a 10% decrease in existing customers, a 21% decrease in new, and a 16% decrease in reactivated customers.

Improving gross, margins and aggressively managing costs. Also continue to be top of mind.

As you can see on slide 8, in our presentation on a trailing 12-month basis, the customer count declined on a sequential basis with a decrease of approximately 3% versus March 2025.

Please note, this does not include any new customers purchasing through our Tik Tok shop.

Existing customers can continue to purchase at healthy levels, spending on average $1,622 and purchasing 31 items in the 12 months ended June 30.

And that QVC, our best customers who buy 20 or more items annually. Also continue to purchase at very attractive levels, and the 12 months ending June 30th, they bought 76 items and spent 300990 on average up approximately 1% versus last year.

Total QX customer count, declined. 12% in the quarter driven by a 10% decrease in existing customers. A 21%, decrease in new and a 16% decrease, in reactivated customers.

David Rawlinson II: The decline in linear TV households continues to put pressure on our customer count year-over-year. Our traditional customer reporting does not include any new customers who purchase from our TikTok Shop. We estimate that well over 100,000 new customers purchased through our TikTok Shop in Q2. There are still many unknowns in this relatively immature business. We continue to grow our catalog and improve our technology, and we expect to have more robust customer-level analytics and reporting in the coming quarters. Notably, when the estimated new TikTok Shop customers are now added to traditional customer reporting, we saw the number of new customers grow substantially year-over-year in a halving of the rate of decline in the overall customer file. We believe this is a strong and early sign of success in our social strategy.

David Rawlinson: The decline in linear TV households continues to put pressure on our customer count year-over-year. Our traditional customer reporting does not include any new customers who purchase from our TikTok Shop. We estimate that well over 100,000 new customers purchased through our TikTok Shop in Q2. There are still many unknowns in this relatively immature business. We continue to grow our catalog and improve our technology, and we expect to have more robust customer-level analytics and reporting in the coming quarters. Notably, when the estimated new TikTok Shop customers are now added to traditional customer reporting, we saw the number of new customers grow substantially year-over-year in a halving of the rate of decline in the overall customer file. We believe this is a strong and early sign of success in our social strategy.

The decline in linear TV, households continues to put pressure on our customer count year over year, our traditional customer reporting does not include any new customers who purchase from our Tik Tok shop. We estimate that well over 100,000 new customers purchase through our Tik Tok shop in the second quarter.

There are still many unknowns in this relatively immature business. We continue to grow our catalog and improve our technology and we expect to have more robust customer, level analytics and Reporting and the coming quarters, notably.

When we?

David Rawlinson II: When we look within our categories, we saw declines in all categories with the exception of electronics compared to last year. Although apparel was down, we experienced strength from several of our core apparel brands, including Kim Gravel, Denim & Co., Diane Gilman, and LOGO by Lori Goldstein, and also saw success in accessories driven by handbags and luggage. The Christmas in July event we kicked off in June drew strong sales with customers responding to our food offerings, along with new items from favorite brands like Valerie Parr Hill, Bethlehem Lights, and HomeWorx by Slatkin. Our home business was down 12%, but we saw success in our private label Bed & Bath, Home Environment, and Smart Home categories. Tariffs were a factor in our inventory mix and impacted deliveries and product availability.

David Rawlinson: When we look within our categories, we saw declines in all categories with the exception of electronics compared to last year. Although apparel was down, we experienced strength from several of our core apparel brands, including Kim Gravel, Denim & Co., Diane Gilman, and LOGO by Lori Goldstein, and also saw success in accessories driven by handbags and luggage. The Christmas in July event we kicked off in June drew strong sales with customers responding to our food offerings, along with new items from favorite brands like Valerie Parr Hill, Bethlehem Lights, and HomeWorx by Slatkin. Our home business was down 12%, but we saw success in our private label Bed & Bath, Home Environment, and Smart Home categories. Tariffs were a factor in our inventory mix and impacted deliveries and product availability.

When the estimated new TikTok Shop customers are now added to traditional customer reporting, we saw the number of new customers grow substantially year-over-year, and a housing of the rate of the clients and the overall customer files. We believe this is a strong and early sign of success in our social strategy.

When we look within our categories, we saw declines in all categories, with the exception of electronics compared to last year. Although apparel was down. We experienced strength from several of our core apparel Brands, including Kim, growl Denim, and Company, Diane, Gilman, and Logo by Lori Goldstein. And also also saw success and accessories driven by Handbags and luggage.

The Christmas in July event. We kicked off in June, through strong sales with customers responding to our food offerings along with new items from favor Brands like Valerie farhill Bethlehem light and homeworks by slatkin.

Our home business was down 12%, but we saw success in our private label bed and bath home environment and smart home categories. Tariffs were a factor in our inventory, mix and impacted deliveries and products available.

David Rawlinson II: Moving to QVC International, we saw revenue decline 3% in constant currency compared to prior quarters of broadly stable revenue performance. We continue to experience top-line pressure in Japan, but revenue in our European markets was only down approximately 1%. Total customer count declined 4% in the quarter, driven by a 3% decrease in existing customers, a 5% decrease in new customers, and an 8% decrease in reactivated customers. Finally, for our Cornerstone brands, revenue declined 8% in the second quarter, an improvement from our first quarter results driven by our transformation efforts. To wrap up, while some of the uncertainty we experienced last quarter has persisted in Q2, we remain guided by our confidence in our business strategy and leadership. We continue to do what we do best, creating an opportunity for shoppers to explore, dream, and connect.

David Rawlinson: Moving to QVC International, we saw revenue decline 3% in constant currency compared to prior quarters of broadly stable revenue performance. We continue to experience top-line pressure in Japan, but revenue in our European markets was only down approximately 1%. Total customer count declined 4% in the quarter, driven by a 3% decrease in existing customers, a 5% decrease in new customers, and an 8% decrease in reactivated customers. Finally, for our Cornerstone brands, revenue declined 8% in the second quarter, an improvement from our first quarter results driven by our transformation efforts. To wrap up, while some of the uncertainty we experienced last quarter has persisted in Q2, we remain guided by our confidence in our business strategy and leadership. We continue to do what we do best, creating an opportunity for shoppers to explore, dream, and connect.

Performance.

We continue to experience, Topline pressure in Japan, but Revenue in our European markets was only down approximately 1%.

Total customer count declined 4% in the quarter driven by a 3%, decrease, in existing customers, a 5% decrease in new customers, and an 8% decrease in reactivated customers.

Finally, for our Cornerstone brands Revenue declined, 8% in the second quarter and improvement from our first quarter results, driven by our transformation efforts

to wrap up.

David Rawlinson II: We've evolved with the changing consumer preferences towards newer channels and platforms like streaming, TikTok, and Facebook, and are now beginning to see those efforts positively impact our business. We will continue to be a class leader here while also tightly managing costs and the balance sheet. Now I'll turn the call to Bill to review Q2 financial results for each of our businesses.

David Rawlinson: We've evolved with the changing consumer preferences towards newer channels and platforms like streaming, TikTok, and Facebook, and are now beginning to see those efforts positively impact our business. We will continue to be a class leader here while also tightly managing costs and the balance sheet. Now I'll turn the call to Bill to review Q2 financial results for each of our businesses.

While some of the uncertainty we experienced last quarter, has persisted in Q2, we remain Guided by our confidence, in our business strategy, and Leadership, we continue to do what we do. Best, creating an opportunity for Shoppers to explore dream and connect.

We've evolved with the changing consumer preferences, towards newer channels and platforms. Like streaming Tik Tok, and Facebook, and are now beginning to see those efforts, positively impact our business, we will continue to be a class leader here while also tightly managing costs in the balance sheet. Now, I'll turn the call to Bill to review Q2 Financial results for each of our businesses.

Jessica Donati: Thank you, David, and good morning, everyone. Unless otherwise noted, my comments compare financial performance for the three months ended June 30, 2025, to the same period in 2024. Starting with QxH, revenue declined by 11% due to lower unit volume and less shipping and handling revenue, with a partial offset in favorable returns rate and higher average selling price. From a category perspective, home revenue decreased 12%, driven by reduced demand in culinary and pressure in many of our Today's Special Value events. Apparel revenue decreased by 9%, consistent with what we experienced in Q1. Beauty revenue fell by 13% in Q2, although we did see wins in brands like bareMinerals, ELEMIS, and tarte. Accessories experienced another challenging quarter with a 15% decline, driven again by footwear and loungewear. Electronics grew 4%, driven by smart home, computers, audio, and gaming.

Bill Wafford: Thank you, David, and good morning, everyone. Unless otherwise noted, my comments compare financial performance for the three months ended June 30, 2025, to the same period in 2024. Starting with QxH, revenue declined by 11% due to lower unit volume and less shipping and handling revenue, with a partial offset in favorable returns rate and higher average selling price. From a category perspective, home revenue decreased 12%, driven by reduced demand in culinary and pressure in many of our Today's Special Value events. Apparel revenue decreased by 9%, consistent with what we experienced in Q1. Beauty revenue fell by 13% in Q2, although we did see wins in brands like bareMinerals, ELEMIS, and tarte. Accessories experienced another challenging quarter with a 15% decline, driven again by footwear and loungewear. Electronics grew 4%, driven by smart home, computers, audio, and gaming.

Thank you, David and good morning everyone. Unless otherwise noted my comments compare financial performance for the 3 months ended June 30th 2025 to the same period in 2024

Starting with QX.

Revenue decline by 11% due to lower unit volume and less shipping and handling Revenue with a partial offset in favorable returns rate and higher average selling price.

From a category perspective, home Revenue, decreased 12% driven by reduced demanding culinary, and pressure in many of our Today's Special Value events.

The Peril Revenue decreased by 9% consistent with what we experienced in q1.

Beauty Revenue fell by 13% in Q2, although we did see winds and Brands like Bare Minerals, elements and touche.

accessories, experienced another challenging quarter with a 15% decline driven, Again by Footwear and loungewear

Jessica Donati: Operating loss was primarily driven by a $2.4 billion non-cash impairment charge related to goodwill and trade names. Adjusted OIBDA margin contracted 165 basis points. Gross margin declined approximately 15 basis points, with higher product margins and favorability in obsolescence more than offset by fulfillment pressure, and sales deleverage. Product margins increased by 50 basis points, driven by better return rates, partially offset by lower shipping and handling revenue, and initial margin. Obsolescence favorability of 25 basis points is driven by the overlap of an abnormally high balance in Q2 2024. Fulfillment expenses were unfavorable 90 basis points due to increased freight rates and sales deleverage. On an aggregate dollar basis, operating expenses decreased 13%, and SG&A expenses were flat. Operating expenses decreased $16 million, largely driven by lower commissions. SG&A expenses were flat, driven by lower personnel costs offset by higher marketing costs.

Bill Wafford: Operating loss was primarily driven by a $2.4 billion non-cash impairment charge related to goodwill and trade names. Adjusted OIBDA margin contracted 165 basis points. Gross margin declined approximately 15 basis points, with higher product margins and favorability in obsolescence more than offset by fulfillment pressure, and sales deleverage. Product margins increased by 50 basis points, driven by better return rates, partially offset by lower shipping and handling revenue, and initial margin. Obsolescence favorability of 25 basis points is driven by the overlap of an abnormally high balance in Q2 2024. Fulfillment expenses were unfavorable 90 basis points due to increased freight rates and sales deleverage. On an aggregate dollar basis, operating expenses decreased 13%, and SG&A expenses were flat. Operating expenses decreased $16 million, largely driven by lower commissions. SG&A expenses were flat, driven by lower personnel costs offset by higher marketing costs.

Electronics, grew, 40%, 4%, driven by smart home, computers audio and gaming.

Operating loss was primarily driven by a 2.4 billion. Non-cash impairment charge related to Goodwill and trade names.

Adjusted orbit and margin contracted 165 basis points.

Gross margin declined, approximately 15, basis points with higher product, margins and favorability, and obsolescence more than offset by fulfillment, pressure and sales deleverage.

Product margins, increased by 50 basis points, driven by better return rates partially offset by lower shipping and handling revenue, and initial margin.

Pops of less than favorability of 25. Basis points is driven by the overlap of an abnormally high balance in Q2 2024.

Fulfillment expenses were unfavorable 90 basis points. Due to increased Freight rates in sales deleverage

on an aggregate dollar basis. Operating expenses decreased 13% and sgna expenses were flat.

Operating expenses decreased by $16 million, largely driven by lower commissions.

Jessica Donati: SG&A was unfavorable by approximately 175 basis points due to sales deleverage. Moving to QVC International, my comments will focus on constant currency results. Revenue declined 3%, reflecting a 3% decrease in unit shipped and a 2% decrease in average selling price, partially offset by a favorable returns rate. From a category perspective, QVC International experienced sales growth in apparel, while home and accessories categories were flat, and beauty, jewelry, and electronics declined. Germany net revenue increased 1%, while Japan revenue declined 7%, and the UK declined 1%. Adjusted OIBDA decreased 8%, and adjusted OIBDA margin declined 60 basis points. Gross margin decreased 40 basis points due to sales deleverage and fulfillment pressure, partially offset by product margin gains. Fulfillment pressure is due to higher variable wage rates in Europe. Product margin strength was due to favorable returns rate offset by initial margin pressure.

Bill Wafford: SG&A was unfavorable by approximately 175 basis points due to sales deleverage. Moving to QVC International, my comments will focus on constant currency results. Revenue declined 3%, reflecting a 3% decrease in unit shipped and a 2% decrease in average selling price, partially offset by a favorable returns rate. From a category perspective, QVC International experienced sales growth in apparel, while home and accessories categories were flat, and beauty, jewelry, and electronics declined. Germany net revenue increased 1%, while Japan revenue declined 7%, and the UK declined 1%. Adjusted OIBDA decreased 8%, and adjusted OIBDA margin declined 60 basis points. Gross margin decreased 40 basis points due to sales deleverage and fulfillment pressure, partially offset by product margin gains. Fulfillment pressure is due to higher variable wage rates in Europe. Product margin strength was due to favorable returns rate offset by initial margin pressure.

SG&A expenses were flat, driven by lower personnel costs offset by higher marketing costs.

Sgna was unfavorable by approximately 175 basis points due to sales de-lever.

Moving to QVC International, my comments will focus on constant currency results.

Revenue declined, 3% reflecting a 3%, decrease in unit shipped and a 2% decrease in average selling price off partially offset by a favorable returns rate.

From a category perspective, QVC International experienced sales growth in apparel while home and accessories categories were flat.

Or flat, and beauty, and jewelry, and electronics declined.

Germany, net revenue increased 1% while Japan Revenue declined 7% and the UK decline 1%.

Adjusted orbit decreased 8%, and adjusted over the margin declined 60 basis points.

Gross margin decreased, 40 basis points due to sales de leverage and fulfillment pressure partially offset by product margin gains.

Jessica Donati: Operating expenses were flat, and the margin was unfavorable due to sales deleverage. SG&A expenses decreased 2% due to lower personnel expenses. SG&A margin was unfavorable by approximately 10 basis points due to sales deleverage. Moving to Cornerstone, revenue declined 8% in the quarter as we continue to experience soft demand for furniture and decor and from continued challenges in the home sector. Adjusted OIBDA margin decreased approximately 30 basis points, driven by costs for outside services related to Cornerstone's transformation plan and sales deleverage, partially offset by product margin and fulfillment. Turning to cash flow and the balance sheet for the quarter. In the first half of 2025, free cash flow was a use of $156 million compared to a source of $164 million last year. The decrease in cash flow was primarily due to a reduction in cash provided by operations and higher payments for TV distribution rights.

Bill Wafford: Operating expenses were flat, and the margin was unfavorable due to sales deleverage. SG&A expenses decreased 2% due to lower personnel expenses. SG&A margin was unfavorable by approximately 10 basis points due to sales deleverage. Moving to Cornerstone, revenue declined 8% in the quarter as we continue to experience soft demand for furniture and decor and from continued challenges in the home sector. Adjusted OIBDA margin decreased approximately 30 basis points, driven by costs for outside services related to Cornerstone's transformation plan and sales deleverage, partially offset by product margin and fulfillment. Turning to cash flow and the balance sheet for the quarter. In the first half of 2025, free cash flow was a use of $156 million compared to a source of $164 million last year. The decrease in cash flow was primarily due to a reduction in cash provided by operations and higher payments for TV distribution rights.

Fulfillment pressure is due to higher variable wage rates in Europe. Product margin strength was due to favorable returns rate offset by initial margin pressure.

Operating expenses were flat and the margin was unfavorable due to sales deal Leverage.

A margin was unfavorable by approximately 10 basis points, due to sales to Leverage.

Moving to Cornerstone.

Revenue declined 8% in the quarter as we continue to experience soft demand for furniture and decor and from continued challenges in the home sector.

Adjusted orbit of margin decreased approximately, 30 basis points, driven by cost for outside Services related to cornerstone's transformation plan and sales de leverage partially offset by product, margin fulfillment.

Turning the cash flow and the balance sheet for the quarter.

In the first half of 2025 free, cash flow was the use of 156 million compared to a source of 164 million last year.

Jessica Donati: As a reminder, our TV distribution payments fluctuate year-over-year depending on renewal cycles. Looking at the QVC Group, Inc. debt profile. As of 30 June 2025, net debt was $4.7 billion, and the QVC Group revolver had $1.925 billion drawn. QVC Group had total cash of $897 million, of which $330 million was at QVC, Inc., $200 million was at Liberty Interactive LLC, and $262 million was at QVC Group. Our leverage ratio, as of 30 June 2025, as defined by the QVC revolving credit facility, was 3.9 times, excluding Cornerstone, compared to our maximum covenant threshold of 4.5 times. Please note that covenant OIBDA includes the adjusted OIBDA of QVC, Inc., as Cornerstone was removed as a borrower under QVC's credit agreement as of 1 April 2025.

Bill Wafford: As a reminder, our TV distribution payments fluctuate year-over-year depending on renewal cycles. Looking at the QVC Group, Inc. debt profile. As of 30 June 2025, net debt was $4.7 billion, and the QVC Group revolver had $1.925 billion drawn. QVC Group had total cash of $897 million, of which $330 million was at QVC, Inc., $200 million was at Liberty Interactive LLC, and $262 million was at QVC Group. Our leverage ratio, as of 30 June 2025, as defined by the QVC revolving credit facility, was 3.9 times, excluding Cornerstone, compared to our maximum covenant threshold of 4.5 times. Please note that covenant OIBDA includes the adjusted OIBDA of QVC, Inc., as Cornerstone was removed as a borrower under QVC's credit agreement as of 1 April 2025.

The decrease in cash flow was primarily due to a reduction in cash provided by operations and higher payments for TV distribution rights.

As a reminder, our TV, distribution payments fluctuate year-over-year depending on renewal Cycles.

Looking at the QVC Group Inc, debt profile.

As of June 30th, 2025 net debt was 4.7 billion and the QVC group revolver had 1.925 billion drawn.

QVC group had total cache of 897 million.

Of which 330 million was at QVC, Inc, 200 million was at Liberty Interactive, LLC and 262 million was at QVC group.

Our leverage ratio as of June 30th 2025 as defined by the QVC revolving credit facility. With 3.9 times, excluding Cornerstone compared to our maximum Covenant threshold of 4.5 times.

Jessica Donati: In light of the numerous macroeconomic factors and current leverage levels, as we previously announced on 23 May 2025, the board of directors unanimously decided to suspend payment of our quarterly dividend for preferred stockholders. Additionally, to further increase our financial flexibility, we made the decision to borrow $975 million of the funds available on a revolving credit facility in July 2025. These decisions reflect the board's focus on and commitment to taking the necessary steps to preserve cash and enhance long-term value for our business, customers, partners, and investors. As you heard from David, we are focused on taking the necessary steps to strengthen our capital structure. We are in the process of evaluating a range of proactive financial and strategic alternatives. This review is ongoing, and no decisions have been made at this stage.

Bill Wafford: In light of the numerous macroeconomic factors and current leverage levels, as we previously announced on 23 May 2025, the board of directors unanimously decided to suspend payment of our quarterly dividend for preferred stockholders. Additionally, to further increase our financial flexibility, we made the decision to borrow $975 million of the funds available on a revolving credit facility in July 2025. These decisions reflect the board's focus on and commitment to taking the necessary steps to preserve cash and enhance long-term value for our business, customers, partners, and investors. As you heard from David, we are focused on taking the necessary steps to strengthen our capital structure. We are in the process of evaluating a range of proactive financial and strategic alternatives. This review is ongoing, and no decisions have been made at this stage.

Please note that Covenant oyla, includes the adjusted oil of QVC Inc, as Cornerstone was removed as a borrower under QVC's credit agreement as of April 1st.

In light of the numerous macroeconomic factors and current leverage levels as we previously announced on May 23rd, 2025 the board of directors unanimously decided to suspend payment of our quarterly dividend for preferred stockholders.

additionally to further, increase our financial flexibility, we made the decision to borrow 975 million of the funds available on our revolving credit facility in July, 2025

These decisions reflect the board's focus on and commitment to taking the necessary steps to preserve cash and enhance long-term value for our business, customers, partners, and investors.

As you heard from David, we are focused on taking the necessary steps to strengthen our capital structure.

Jessica Donati: We will provide updates if and when there are material developments that warrant further communication. Finally, as we previously announced on 16 May 2025, our board approved a 1-for-50 reverse stock split of the company's Series A common stock and Series B common stock. The reverse stock split was approved by stockholders at our annual meeting on 12 May 2025, and took effect after market closed on 22 May 2025. On 27 May 2025, the company elected to have QVCGB suspended from trading on the NASDAQ Capital Market, and QVCGB began quotation on the over-the-counter market on 28 May 2025. Finally, on 9 June 2025, we received notice that our Series A common stock had regained compliance with NASDAQ, and as a result, QVCGA and QVCGP stocks continue to trade on NASDAQ. Now I'll turn the call over to Greg.

Bill Wafford: We will provide updates if and when there are material developments that warrant further communication. Finally, as we previously announced on 16 May 2025, our board approved a 1-for-50 reverse stock split of the company's Series A common stock and Series B common stock. The reverse stock split was approved by stockholders at our annual meeting on 12 May 2025, and took effect after market closed on 22 May 2025. On 27 May 2025, the company elected to have QVCGB suspended from trading on the NASDAQ Capital Market, and QVCGB began quotation on the over-the-counter market on 28 May 2025. Finally, on 9 June 2025, we received notice that our Series A common stock had regained compliance with NASDAQ, and as a result, QVCGA and QVCGP stocks continue to trade on NASDAQ. Now I'll turn the call over to Greg.

This review is ongoing and no decisions have been made at this stage. We will provide updates if and when there are material developments that warrant further communication,

Finally, as we previously announced on, May 16th 2025, our board approved a 1 450, reverse stock, split of the company's series, a common stock and series B common stock.

the verse the reverse stock split was approved by stockholders at our annual meeting on May 12th 2025 and took effect after market closed on May 22nd 2025

On May 27th the company elected to have QVC, GB suspended from trading on the NASDAQ Capital Market and QVC GB began quotation on the over-the-counter Market on May 28th.

Finally, on June 9th. 2025 we received notice that our series a common stock had regained compliance with NASDAQ. And as a result QVC, a and qvz GP stocks, continue to trade on NASDAQ.

David Rawlinson II: Thank you, Bill. This was another challenging quarter for QVC Group, and we aren't where we want to be. We remain unable to offset the declines in linear in a challenging environment, but we're pleased to see the growth in social and streaming. As I said, and you've heard it from the above, we are making good progress in social and streaming, and we continue to lean in here. We are balancing execution and a cost focus with investing in this growth businesses. We are also working on our capital structure and our balance sheet, and we are proactively evaluating financial and strategic alternatives. We were pleased to regain compliance and it with the NASDAQ, and with that, we'll address the questions we received prior to the call. Thank you, operator.

Greg Maffei: Thank you, Bill. This was another challenging quarter for QVC Group, and we aren't where we want to be. We remain unable to offset the declines in linear in a challenging environment, but we're pleased to see the growth in social and streaming. As I said, and you've heard it from the above, we are making good progress in social and streaming, and we continue to lean in here. We are balancing execution and a cost focus with investing in this growth businesses. We are also working on our capital structure and our balance sheet, and we are proactively evaluating financial and strategic alternatives. We were pleased to regain compliance and it with the NASDAQ, and with that, we'll address the questions we received prior to the call. Thank you, operator.

Now, I'll turn the call over to Greg.

Thank you, Bill. Uh, this was another challenging quarter.

For QVC group and we aren't where we want to be.

We remain unable to offset the declines in linear and the challenging environment, but we we're, we're pleased to see the growth in Social and streaming.

As I said, you've heard it from the above, we are making good progress in Social and streaming. And we continue to lean in here.

We are balancing execution and it cost focus with investing in this growth businesses.

We are also working on our capital structure.

And our balance sheet, and we are proactively evaluating financial and strategic alternatives.

We were pleased to regain compliance. And that with the NASDAQ,

and with that,

We'll address the questions we received prior to the call.

Thank you, our prayer.

[Company Representative] (QVC Group): Thank you, Greg. As I mentioned before, we received a number of questions submitted prior to the call. Our first question is for David and comes from Carla Casella at JPMorgan. David, can you share some trends in new customers versus reactivated customers versus core customers?

Jessica Donati: Thank you, Greg. As I mentioned before, we received a number of questions submitted prior to the call. Our first question is for David and comes from Carla Casella at JPMorgan. David, can you share some trends in new customers versus reactivated customers versus core customers?

Thank you, Greg. As I mentioned before we received a number of questions submitted prior to the call.

Bill Wafford: Yeah. Thank you for the question. As I mentioned during the call, our traditional customer count does not include any new customers we have purchasing through TikTok Shop. Our trailing 12-month customer count declined 3% versus Q1, and versus last year, our total customer count was down about 12%. But as I mentioned before, we know that over 100,000 new customers bought from us through our TikTok Shop, and comparing that to Q2 2024, that would improve our new customer count to +7% versus the reported -21%. We expect that social will continue to help drive new and reactivated customers like we saw in Q2. A few other things I'd call out. We are seeing some stability in average customer spend. Best customer spend is up 1% this quarter, and existing customer retention is also up, improving about 100 basis points versus last year.

David Rawlinson: Yeah. Thank you for the question. As I mentioned during the call, our traditional customer count does not include any new customers we have purchasing through TikTok Shop. Our trailing 12-month customer count declined 3% versus Q1, and versus last year, our total customer count was down about 12%. But as I mentioned before, we know that over 100,000 new customers bought from us through our TikTok Shop, and comparing that to Q2 2024, that would improve our new customer count to +7% versus the reported -21%. We expect that social will continue to help drive new and reactivated customers like we saw in Q2. A few other things I'd call out. We are seeing some stability in average customer spend. Best customer spend is up 1% this quarter, and existing customer retention is also up, improving about 100 basis points versus last year.

David, can you share some trends in new customers versus reactivated customers versus core customers?

Thank you for the question. As I mentioned, during the call, our traditional customer count does not include any new customers. We have purchasing through Tik Tok shop, our trailing 12-month, customer count declined, 3% versus q1 versus uh last year. Our total customer count was down about 12%. But as I mentioned before, we know that over 100,000 new customers bought brought uh, bought from us through our Tik Tok shop and comparing that to Q2 2024 that would improve. Our new customer count to plus 7% versus the reported negative -21. We expect that social will continue to help Drive New and reactivated customers. Like we saw in Q2, uh, a few other things I call out. We are seeing some stability and the average customer spend best. Customer spend is up 1% this quarter and existing customer retention. Is also up improving about a 100 basis point.

Uh, versus last year.

[Company Representative] (QVC Group): Thank you. Next question also for you, David. Can you share the percentage of sales coming from the core business, and has that changed?

Jessica Donati: Thank you. Next question also for you, David. Can you share the percentage of sales coming from the core business, and has that changed?

Thank you.

Bill Wafford: Sure. We estimate that social and streaming revenue is approaching low double digits as a percentage of QxH revenue. That obviously still leaves 90% of revenue in QxH driven by core linear and digital. However, our social and streaming businesses grew over 30% in Q2 versus last year and is now a larger percentage of QxH revenue than they were in the first quarter. And so I would say less is coming out of our core, given just some of the trends that we are seeing there. And then with a significant growth in social and streaming, we would continue to expect to see a shift with increasingly more social and streaming revenue as a percentage of total revenue over time.

David Rawlinson: Sure. We estimate that social and streaming revenue is approaching low double digits as a percentage of QxH revenue. That obviously still leaves 90% of revenue in QxH driven by core linear and digital. However, our social and streaming businesses grew over 30% in Q2 versus last year and is now a larger percentage of QxH revenue than they were in the first quarter. And so I would say less is coming out of our core, given just some of the trends that we are seeing there. And then with a significant growth in social and streaming, we would continue to expect to see a shift with increasingly more social and streaming revenue as a percentage of total revenue over time.

Uh, next question, also for you David. Um, can you share the percentage of sales uh coming from The Core Business and has that changed?

Sure. Um,

We estimate that social and streaming revenue is approaching low double digits as a percentage of QX H revenue. That obviously still leaves 90% of revenue in QXA, driven by core linear and digital. However, our social and streaming businesses grew over 30% in Q2 versus last year and are now a larger percentage of QX revenue than they were in the first quarter. Uh, we’ve, uh, and so I would say.

[Company Representative] (QVC Group): Great. Thank you. And our final question is a two-part question around tariffs. First, can you share the tariff impact expected for fiscal 2025, and what are your top ways to mitigate tariffs? And then second, follow on, did you see any tariff impact in Q2, and are your vendors passing on increased tariff costs?

Jessica Donati: Great. Thank you. And our final question is a two-part question around tariffs. First, can you share the tariff impact expected for fiscal 2025, and what are your top ways to mitigate tariffs? And then second, follow on, did you see any tariff impact in Q2, and are your vendors passing on increased tariff costs?

Less is coming out of our core um, given just some of the trends that we are seeing there and then with the uh a significant growth in Social and streaming, we would continue to expect to see a shift with uh increasingly more uh social and streaming Revenue as a percentage of total revenue over time.

Um, and our final question.

Bill Wafford: Great. A lot there. We're monitoring tariff impact. We're taking a lot of the steps that we've discussed. We're being prudent about placing new orders and canceling certain existing orders from high tariff countries. We're managing sourcing. We're actively negotiating with vendors, and in some circumstances, we've implemented price changes. We're still working towards our target that no single country will represent more than 1/3 of our source goods in the US by the end of the year. That is a big change from where we were, which is more than 1/2 of our goods coming from a single country. And so that's a major effort, and we think that's one of the major that diversification will be a major source of stability going forward. But we continue to see volatility. You've seen lots of changes even in the last few days.

David Rawlinson: Great. A lot there. We're monitoring tariff impact. We're taking a lot of the steps that we've discussed. We're being prudent about placing new orders and canceling certain existing orders from high tariff countries. We're managing sourcing. We're actively negotiating with vendors, and in some circumstances, we've implemented price changes. We're still working towards our target that no single country will represent more than 1/3 of our source goods in the US by the end of the year. That is a big change from where we were, which is more than 1/2 of our goods coming from a single country. And so that's a major effort, and we think that's one of the major that diversification will be a major source of stability going forward. But we continue to see volatility. You've seen lots of changes even in the last few days.

Is a two-part question around tariffs. Uh, first, did you see? Um, can you share the tariff impact expected for fiscal 2025? And what are your top ways to mitigate tariffs? And then, second follow-on. Um, did you see any tariff impact in the second quarter? Um, are your vendors passing on increased tariff costs? Great, a lot there. Uh,

Bill Wafford: We saw the first real impact of tariffs in our Christmas in July event, which kicked off in June. We completed an inventory assessment. For that, we limited some orders and buys, and then we also took some price actions on the things we were selling during the Christmas in July event. As I said, tariffs will continue to be fluid, and we continue to adjust in changes in rates, including to the most recent ones. But what was encouraging about the Christmas in July event is we did not see big drop-offs in demand in response to the price changes that we made in that event. And so it gives us some confidence about our ability to continue to navigate our way through some of the current tariff challenges. And the last comment I have is that we should also remember that our international business had minimal tariff impact.

David Rawlinson: We saw the first real impact of tariffs in our Christmas in July event, which kicked off in June. We completed an inventory assessment. For that, we limited some orders and buys, and then we also took some price actions on the things we were selling during the Christmas in July event. As I said, tariffs will continue to be fluid, and we continue to adjust in changes in rates, including to the most recent ones. But what was encouraging about the Christmas in July event is we did not see big drop-offs in demand in response to the price changes that we made in that event. And so it gives us some confidence about our ability to continue to navigate our way through some of the current tariff challenges. And the last comment I have is that we should also remember that our international business had minimal tariff impact.

we're monitoring tariff impact. Uh, we're taking a lot of the steps that we've discussed. We're being prudent about places new orders and canceling certain existing orders from high tariffs countries, we're managing sourcing. We're actively negotiating with vendors. And in some circumstances we've implemented a price changes. Uh, we're still working towards, uh, our Target that no single country will represent more than a third of our source Goods in the US, by the end of the year, that is, uh, a big change from uh, where we were, which is more than half of our Goods coming from a single country. And so that's a major effort and we think that's 1 of the major that diversification uh, will be a major source of stability, going forward. Uh, but we continue to see uh, volatility you've seen lots of changes even in the last few days.

Bill Wafford: I would just remind everybody not to forget about that business. Our international business makes up over 25% of our revenue and is more insulated from some of the impacts of the tariffs. With that, I think that is all the questions. I want to thank you again for your interest in the QVC Group, and I want to thank you for your interest in our results and look forward to continuing to share our story and continue to visit as we make more progress on this transformation.

David Rawlinson: I would just remind everybody not to forget about that business. Our international business makes up over 25% of our revenue and is more insulated from some of the impacts of the tariffs. With that, I think that is all the questions. I want to thank you again for your interest in the QVC Group, and I want to thank you for your interest in our results and look forward to continuing to share our story and continue to visit as we make more progress on this transformation.

We saw the first real impact of tariffs and our Christmas in July event, which uh, kicked off in June, we completed an inventory assessment. Uh, for that we limited some orders and buys. And then, we also took some price actions on the things. We were selling during the Christmas and July event. Uh, as I said, uh, tariffs will continue to be fluid and we continue to adjust and changes in rates, uh, including to the most recent ones. But what was encouraging about the Christmas in July event is we did not see big drop offs in in demand um in response to the price changes that we made in that event. And so, it gives us some confidence, our about our ability to navigate continue to navigate our way through some of the current tariff challenges. Uh, and last comment, I have, is that we should also remember that our international business had minimal tariff impact,

Tariffs.

Um with that I think that is all the questions I want to thank you. Uh again for your interest in uh the QVC group. And I want to thank you for your interest, in our results and uh look forward to continuing to share our story and continue to visit as we make uh, more progress on this transformation.

Operator: Thank you. This will conclude today's conference. You may disconnect your lines at this time, and thank you for your participation.

Thank you, this will conclude today's conference. You may disconnect your lines at this time and thank you for your participation.

Q2 2025 QVC Group Inc Earnings Call

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