Supply constraints crimp American firm Qurate Retail's Q3 earnings

12 Nov '21

2 min read

Pic: Qurate Retail

Qurate Retail, a US-based media conglomerate and provider of e-commerce services, has reported a 7 per cent revenue decline to $3.1 billion in the third quarter (Q3) of FY21 ended on September 30, 2021, compared to the revenue of $3.4 billion in the same period of previous fiscal. The company’s net earnings slipped to $150 million (Q3 FY20: $352 million).

“While there are near-term industry challenges to work through, I couldn’t be more excited about the long-term opportunity at Qurate Retail to accelerate growth and drive shareholder value,” David Rawlinson, president and CEO of Qurate Retail, said in a press release.

“Our team is managing through current industry pressures while simultaneously working intently to accelerate growth initiatives and reimagine our strategic plan. Supply chain constraints and cost inflation are impacting our entire industry, and we have taken action to help mitigate the potential impacts,” Rawlinson added.

During the third quarter, Qurate Retail’s e-commerce revenue decreased by 6 per cent to $2.0 billion, representing 63 per cent of the total revenue. Operating income plunged to $274 million ($406 million).

By segments, QxH’s revenue dropped by 8 per cent to $2.0 billion ($1.8 billion), primarily due to a 9 per cent decrease in units sold, reflecting industry-wide supply constraints. QVC international recorded a 3 per cent dip in sales to $699 million ($723 million), while supply constraints and reduced marketing effectiveness resulted in a 17 per cent sales decline of Zulily to $328 million ($395 million).

On the contrary, Cornerstone generated record third quarter revenue of $304 million ($285 million), primarily due to strong demand for home décor, interior furnishings, bath and textiles, and for apparel at Garnet Hill.

“Our business is built on a solid foundation of long-standing relationships with highly engaged customers, expert hosts, compelling entrepreneurs, an established vendor network and our talented employee base. This is a solid foundation for accelerating our effort to humanise retail, in contrast to the scaled transactional players,” Rawlinson concluded.

Fibre2Fashion News Desk (JL)

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