Dive Brief:

• Qurate Retail Group’s fourth-quarter revenue fell 11% to $3.14 billion from $3.5 billion a year ago, the company said in a Wednesday earnings announcement. Revenue at the company’s main banners, QVC and HSN, fell 4% for the quarter.
• Full-year revenue fell 10% to $10.9 billion from $12.1 billion a year earlier. Qurate posted positive operating income for the year of $590 million versus a $2 billion loss year over year.
• Qurate on Tuesday also announced Stacy Bowe is HSN’s new president, effective immediately. Bowe was previously chief merchandising officer of QVC U.S. She succeeds Rob Muller, who has been with the company 23 years and is leaving for family reasons and to pursue other opportunities. He will remain with HSN through April to support the transition. 

Dive Insight:

Qurate President and CEO David Rawlinson described 2023 as “a transformational year.”

However, the company’s performance remained soft following the sale of Zulily to an investment firm in May. Zulily had been part of the company since 2015. After seven months of new ownership, Zulily went out of business in December. The company is now trying to liquidate its assets. In its release, Qurate noted that, excluding Zulily, its revenue decline would be only 4% for the quarter and just 5% for the year.

The fall in revenue at QVC and HSN was due fewer units shipped, down 5% in Q4 and 6% for the full year. The two banners saw gains in apparel and jewelry but declines in electronics and home in Q4. 

Fourth quarter e-commerce revenue for QVC and HSN dropped 1.5%, while full-year e-commerce revenues for both brands fell 3% from about $4.5 billion to $4.3 billion year over year. Rawlinson said the company also reduced its gross debt by about $1 billion in 2023. 

“As we enter 2024, we have confidence in our ability to sustain momentum in creating a more streamlined, profitable, cash-producing and relevant company,” Rawlinson said during a call with analysts. 

Rawlinson said Qurate sees an opportunity with its streaming business. “Though still a small percent of our overall revenue base, streaming revenue grew more than 50% in 2023. We see similar growth rates continuing into 2024 as the business begins to scale,” he said. The company opened two new retail stores and relocated one in Q4, and the expansion has driven sales and improved conversion, Rawlinson said.

Rawlinson lauded Bowe’s tenure as QVC’s chief merchant. During that time, Bowe recalibrated the buying program, improved inventory levels, and reinvigorated the newness of the assortment. “Stacy's consumer focus and experience at top brands like Macy's will be critical in accelerating HSN's position with consumers, brands, and the celebrities and entertainers that differentiate HSN in the marketplace,” Rawlinson said in Tuesday’s announcement.