QVC parent company downbeat on Q4 revenue; changes to come

Qurate Retail gave a preliminary look at fourth-quarter revenue results that showed declining fourth-quarter revenue.

The parent company of QVC, HSN, Zulily, Ballard Designs and other banners said its revenue fell 8% to 9% in the fourth quarter, ended Dec. 31. Revenue for QxH, which represent the QVC U.S. and HSN businesses, is expected to be down 6.5% to 7.5%.

“Revenue performance at QxH deteriorated throughout the fourth quarter, deviating from initial trends indicated on our third-quarter earnings conference call,” said David Rawlinson, who took the reins as president and CEO of Qurate Retail in October. “We are not pleased with these results and are actively taking steps to improve our long-term performance across business units. We are looking forward to a new leadership approach at QxH and Zulily and the ongoing development of our long-term strategy.”

Qurate also noted, as previously reported, that its fulfillment center in Rocky Mount, N.C., experienced a fire on Dec. 18 that will result in the shuttering of the facility and nearly 2,000 job losses. The retailer said it is still assessing the impact of the “tragic” fire in coordination with its insurance carriers.

Following the fire, QVC diverted incoming fulfillment orders to its other fulfillment centers. The company said it will continue to leverage its existing fulfillment center footprint in the near-term to mitigate the impact to business operations.

Qurate Retail is comprised of seven retail brands: QVC, HSN, Zulily, Ballard Designs, Frontgate, Garnet Hill, and Grandin Road (collectively, “Qurate Retail Group”). Qurate Retail Group is the largest player in video commerce which includes video-driven shopping across linear TV, e-commerce sites, digital streaming and social platforms. The retailer reaches more than 200 million homes worldwide via 14 television networks and reaches millions more via multiple streaming services, social pages, mobile apps, websites, print catalogs, and in-store destinations.