XML 26 R16.htm IDEA: XBRL DOCUMENT v3.25.1
Information about QVC's Operating Segments
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Segment reporting disclosure Information about QVC's Operating Segments
The Company's chief operating decision maker ("CODM") is the Company's Chief Executive Officer who has ultimate responsibility for enterprise decisions. QVC's CODM determines, in particular, resource allocation for, and monitors performance of, the consolidated enterprise, QxH, and QVC International. The segment managers have responsibility for operating decisions, allocating resources and assessing performance within their respective segments. QVC's CODM relies on internal management reporting that analyzes enterprise results and segment results to the Adjusted OIBDA level (see below).
For the three months ended March 31, 2025 and 2024, QVC has identified QxH and QVC International as its two reportable segments. Both operating segments are retailers of a wide range of consumer products, which are marketed and sold primarily by merchandise-focused televised-shopping programs as well as via the internet and mobile applications in certain markets.
The Company evaluates performance and makes decisions about allocating resources to its operating segments based on financial measures such as net revenue, Adjusted OIBDA (defined below), gross margin, average sales price per unit, number of units shipped and revenue or sales per customer. For segment reporting purposes, the Company defines Adjusted OIBDA, as net revenue less cost of goods sold, operating expenses, and selling, general and administrative expenses (excluding stock-based compensation, and restructuring costs). The Company believes this measure is an important indicator of the operational strength and performance of its segments by identifying those items that are not directly a reflection of each segment's performance or indicative of ongoing business trends. In addition, this measure allows management to view operating results and perform analytical comparisons and benchmarking among the Company's businesses and identify strategies to improve performance. This measure of performance excludes depreciation, amortization, impairment losses, gains on sale of assets and sale-leaseback transactions, restructuring, and stock-based compensation that are included in the measurement of operating income pursuant to U.S. GAAP. Accordingly, Adjusted OIBDA should be considered in addition to, but not as a substitute for, operating income, net earnings (loss), cash flow provided by operating activities and other measures of financial performance prepared in accordance with U.S. GAAP. The segment presentation for prior periods has been conformed to the current period segment presentation.
Disaggregated revenue by segment and product category consisted of the following:
Three months ended March 31, 2025Three months ended March 31, 2024
(in millions)QxHQVC Int'lTotalQxHQVC Int'lTotal
Home$538 223 761 589 237 826 
Apparel258 99 357 282 108 390 
Beauty211 120 331 239 129 368 
Accessories173 46 219 201 48 249 
Electronics89 15 104 108 15 123 
Jewelry63 33 96 80 33 113 
Other revenue36 1 37 40 2 42 
Total net revenue$1,368 537 1,905 1,539 572 2,111 

Performance measures
Three months ended March 31, 2025Three months ended March 31, 2024
(in millions)QxHQVC-Int'lTotalQxHQVC-Int'lTotal
Net revenue$1,368 537 1,905 1,539 572 2,111 
Costs of goods sold (exclusive of depreciation and amortization)923 348 1,271 1,007 366 1,373 
Segment gross profit445 189 634 532 206 738 
Operating expense111 43 154 125 45 170 
Advertising55 8 63 53 7 60 
Selling, general and administrative, excluding stock-based compensation and advertising157 75 232 169 79 248 
Adjusted OIBDA$122 63 185 185 75 260 
Other information
March 31, 2025
(in millions)Total
assets		Capital
expenditures		Property and equipment, net
QxH$7,891 25 235 
QVC International1,784 5 153 
Consolidated QVC$9,675 30 388 
March 31, 2024
(in millions)Total
assets		Capital
expenditures		Property and equipment, net
QxH$9,582 22 254 
QVC International1,793 10 153 
Consolidated QVC$11,375 32 407 
The following table provides a reconciliation of Adjusted OIBDA to operating income and income before income taxes:
Three months ended March 31,
(in millions)20252024
Adjusted OIBDA$185 260 
Gain on sale leaseback transaction— 1 
Restructuring costs(57)— 
Stock-based compensation(4)(12)
Depreciation and amortization(95)(92)
Operating income 29 157 
Interest expense, net(60)(62)
Foreign currency gain (loss)(4)(1)
(Loss) earnings before income taxes$(35)94