Qurate Retail, Inc. reported a decline in revenue and profitability for the third quarter and the first nine months of 2024 compared to the same periods in 2023. For the three months ended September 30, 2024, total revenue was $2,344 million, a decrease of 5.4% from $2,479 million in the prior year. For the nine months ended September 30, 2024, revenue fell 8.7% to $7,093 million from $7,772 million. The decline was attributed to a decrease in units shipped and average selling prices, particularly in the QxH segment, which generated $1,521 million in Q3 2024, down from $1,617 million in Q3 2023.
Despite the revenue drop, Qurate Retail's operating income for the three months ended September 30, 2024, increased slightly to $152 million from $151 million in the same period last year. However, for the nine months, operating income decreased to $462 million from $693 million. Net earnings for the third quarter were a loss of $15 million, compared to a profit of $12 million in Q3 2023, while net earnings for the nine months fell to $25 million from $164 million.
The company’s total assets decreased to $10,773 million as of September 30, 2024, down from $11,368 million at the end of 2023. Current assets also declined, with cash and cash equivalents dropping to $873 million from $1,121 million. Inventory levels increased to $1,299 million, up from $1,044 million, indicating a potential buildup of unsold goods.
Strategically, Qurate Retail has been focusing on operational efficiencies and cost reductions through its Project Athens initiative, which aims to enhance customer experience and optimize brand performance. The company recorded restructuring charges of $18 million in the nine months ended September 30, 2024, related to a shift in its IT operating model. Additionally, Qurate Retail divested its subsidiary Zulily in May 2023, which had previously reported losses and contributed to a $64 million loss on divestiture.
Debt management remains a priority, with total consolidated debt reported at $5,583 million as of September 30, 2024. The company has initiated a private exchange offer for its senior secured notes to manage its debt obligations effectively. As of the same date, Qurate Retail's liquidity position stood at $873 million, with significant cash reserves held in highly rated financial instruments.
Overall, Qurate Retail is navigating a challenging market environment, marked by inflationary pressures and shifts in consumer spending, while implementing strategic initiatives to enhance its operational framework and financial stability.
About Qurate Retail, Inc.
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