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Mar 31, 2020
Qurate Q1 2020 Earnings Report
Qurate Retail's financial performance was impacted by COVID-19, with revenue decreasing and a shift towards lower-margin products.
Key Takeaways
Qurate Retail reported a 5% decrease in revenue to $2.9 billion, impacted by COVID-19. Diluted EPS was $(0.05), while adjusted diluted EPS was $0.27. The company focused on team member safety and adjusted its offerings to address changing consumer needs.
Total Qurate Retail revenue decreased by 5% to $2.9 billion.
Qurate Retail reported diluted EPS of $(0.05) and adjusted diluted EPS of $0.27.
eCommerce revenue accounted for 59% of total revenue, totaling $1.7 billion.
The company focused on the safety and financial well-being of its team members in response to COVID-19.
Revenue by Segment
Forward Guidance
Qurate Retail is reducing planned spending and supporting COVID-19 relief programs.
Positive Outlook
- Qurate Retail shifted all team members who could work from home to do so temporarily.
- Qurate Retail increased safety and sanitation protocols at fulfillment centers and live studios.
- Qurate Retail rapidly adjusted product offerings, merchandising, marketing, and on-air and online programming.
- Qurate Retail reduced planned spending, including an anticipated $30 to $50 million reduction in capital spend in 2020.
- Qurate Retail has ample liquidity and a healthy balance sheet.
Challenges Ahead
- Qurate Retail experienced significant margin impact from COVID-19 in the first quarter.
- Qurate Retail experienced challenges, including a demand shift to lower-margin products and reduced productivity in fulfillment centers.
- Qurate Retail incurred additional costs impacting margins, including appreciation and emergency pay for onsite team members.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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