qvc-20250331

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2025

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 001-38654

QVC, Inc.

(Exact name of Registrant as specified in its charter)


State of Delaware						23-2414041
(State or other jurisdiction of						(I.R.S. Employer Identification
incorporation or organization)						Number)

1200 Wilson Drive						19380
West Chester, Pennsylvania						(Zip Code)
(Address of principal executive offices)

Registrant's telephone number, including area code: (484) 701-1000

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol	Name of each exchange on which registered
6.375% Senior Secured Notes due 2067	QVCD	New York Stock Exchange
6.250% Senior Secured Notes due 2068	QVCC	New York Stock Exchange

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer o Accelerated filer o Non-accelerated filer ☒ Smaller reporting company Emerging growth

☐ company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No x

None of the voting stock of the registrant is held by a non-affiliate of the registrant. There is no publicly traded market for any class of voting stock of the registrant. There is one holder of record of our equity, Qurate Retail Group, Inc., an indirect wholly-owned subsidiary of QVC Group, Inc.

QVC, Inc.

2025 QUARTERLY REPORT ON FORM 10-Q

Table of Contents


	Part I	Page

Item 1.	Financial Statements (unaudited)	I-1
	Condensed Consolidated Balance Sheets	I-1
	Condensed Consolidated Statements of Operations	I-2
	Condensed Consolidated Statements of Comprehensive Earnings	I-3
	Condensed Consolidated Statements of Cash Flows	I-4
	Condensed Consolidated Statements of Equity	I-5
	Notes to the Condensed Consolidated Financial Statements (unaudited)	I-6
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	I-18
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	I-30
Item 4.	Controls and Procedures	I-31

	Part II
Item 1A.	Risk Factors	II-1
Item 5.	Other Information	II-1
Item 6.	Exhibits	II-1
	Signatures	II-2

Item 1. Financial Statements

QVC, Inc.

Condensed Consolidated Balance Sheets

(unaudited)


	March 31,		December 31,
(in millions, except share amounts)	2025		2024
Assets
Current assets:
Cash and cash equivalents	$	295	297
Trade and other receivables, net of allowance for credit losses of $88 million and $89 million, respectively	832		1,134
Inventories	1,001		901
Other current assets	145		172
Total current assets	2,273		2,504
Property and equipment, net of accumulated depreciation of $934 million and $891 million, respectively	388		410
Intangible assets not subject to amortization (note 2):
Goodwill	2,230		2,204
Tradenames	2,120		2,120
Intangible assets subject to amortization, net (note 2)	402		385
Operating lease right-of-use assets	476		482
Note receivable - related party (note 1)	1,740		1,740
Other noncurrent assets	46		44
Total assets	$	9,675	9,889
Liabilities and Equity
Current liabilities:
Accounts payable	$	624	722
Accrued liabilities	729		874
Current debt (note 3)	—		585
Other current liabilities	47		52
Total current liabilities	1,400		2,233
Long-term debt (note 3)	3,969		3,313
Deferred income tax liabilities (note 4)	397		394
Operating lease liabilities	472		475
Other liabilities	101		105
Total liabilities	6,339		6,520
Equity:
Stockholder's equity:
Common stock, $0.01 par value, 1 authorized share	—		—
Additional paid-in capital	11,204		11,201
Accumulated deficit	(7,622)		(7,538)
Accumulated other comprehensive earnings (loss)	(324)		(370)
Total stockholder's equity	3,258		3,293
Noncontrolling interest in equity of subsidiary	78		76
Total equity	3,336		3,369
Commitments and contingencies (note 5)
Total liabilities and equity	$	9,675	9,889

See accompanying notes to condensed consolidated financial statements

I-1


	Three months ended March 31,
(in millions)	2025		2024
Total revenue, net	$	1,905	2,111
Operating costs and expenses:
Cost of goods sold (exclusive of depreciation and amortization shown separately below)	1,271		1,373
Operating expense	154		170
Selling, general and administrative, including stock-based compensation	299		320
Depreciation and amortization	95		92
Restructuring costs (note 5)	57		—
Gain on sale leaseback transaction	—		(1)
	1,876		1,954
Operating income (loss)	29		157
Other income (expense):
Interest expense, net	(60)		(62)
Foreign currency gain (loss)	(4)		(1)
	(64)		(63)
Earnings (loss) before income taxes	(35)		94
Income tax (expense) benefit	2		(32)
Net earnings (loss)	(33)		62
Less net (earnings) loss attributable to the noncontrolling interest	(9)		(11)
Net earnings (loss) attributable to QVC, Inc. shareholder	$	(42)	51


	Common stock			Additional paid-in capital	Accumulated other comprehensive loss	Accumulated deficit	Noncontrolling interest	Total equity
(in millions, except share data)	Shares	Amount
Balance, December 31, 2023	1	$	—	10,901	(290)	(6,361)	87	4,337
Net (loss) earnings	—	—		—	—	51	11	62
Foreign currency translation adjustments, net of tax	—	—		—	(38)	—	(6)	(44)
Stock-based compensation	—	—		7	—	—	—	7
Dividends paid to QVC Group, Inc. and noncontrolling interest	—	—		—	—	(42)	(11)	(53)
Withholding taxes on net share settlements of stock-based compensation	—	—		(1)	—	—	—	(1)
Impact of tax liability allocation and indemnification agreement with QVC Group, Inc.	—	—		1	—	—	—	1
Balance, March 31, 2024	1	$	—	10,908	(328)	(6,352)	81	4,309


(in millions)	QxH		QVC Int'l	Total
Balance as of December 31, 2024	$	1,464	740	2,204
Exchange rate fluctuations	—		26	26
Balance as of March 31, 2025	$	1,464	766	2,230


	March 31, 2025				December 31, 2024
(in millions)	Gross cost		Accumulated amortization	Intangible assets subject to amortization, net	Gross cost	Accumulated amortization	Intangible assets subject to amortization, net
Purchased and internally developed software	$	1,129	(888)	241	1,094	(852)	242
Affiliate and customer relationships	2,822		(2,740)	82	2,816	(2,722)	94
Television distribution rights	531		(454)	77	535	(489)	46
Debt origination fees	9		(7)	2	9	(6)	3
	$	4,491	(4,089)	402	4,454	(4,069)	385


			Fair value measurements at March 31, 2025
(in millions)	Total		Quoted prices in active markets for identical assets (Level 1)	Significant other observable inputs (Level 2)
Cash equivalents	$	18	18	—
Debt	3,000		286	2,714


			Fair value measurements at December 31, 2024
(in millions)	Total		Quoted prices in active markets for identical assets (Level 1)	Significant other observable inputs (Level 2)
Cash equivalents	$	52	52	—
Debt	3,137		344	2,793


	Three months ended March 31, 2025				Three months ended March 31, 2024
(in millions)	QxH		QVC Int'l	Total	QxH	QVC Int'l	Total
Home	$	538	223	761	589	237	826
Apparel	258		99	357	282	108	390
Beauty	211		120	331	239	129	368
Accessories	173		46	219	201	48	249
Electronics	89		15	104	108	15	123
Jewelry	63		33	96	80	33	113
Other revenue	36		1	37	40	2	42
Total net revenue	$	1,368	537	1,905	1,539	572	2,111


	March 31, 2025
(in millions)	Total assets		Capital expenditures	Property and equipment, net
QxH	$	7,891	25	235
QVC International	1,784		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 International	1,793		10	153
Consolidated QVC	$	11,375	32	407


	Three months ended March 31, 2025
	U.S. Dollars		Foreign Currency Exchange Impact		Constant Currency
QxH	(11.1)	%	—	%	(11.1)	%
QVC International	(6.1)	%	(2.4)	%	(3.7)	%


Remainder of 2025	$	174
2026	169
2027	45
2028	10
2029	4


31.1			Rule 13a-14(a)/15d-14(a) Certification*
31.2			Rule 13a-14(a)/15d-14(a) Certification*
32.1			Section 1350 Certification**
101.INS			Inline XBRL Instance Document* - The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document.
101.SCH			Inline XBRL Taxonomy Extension Schema Document*
101.CAL			Inline XBRL Taxonomy Calculation Linkbase Document*
101.LAB			Inline XBRL Taxonomy Label Linkbase Document*
101.PRE			Inline XBRL Taxonomy Presentation Linkbase Document*
101.DEF			Inline XBRL Taxonomy Definition Document*
104			Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)*


Date: May 7, 2025			By:/s/ DAVID L. RAWLINSON II
			David L. Rawlinson II
			President and Chief Executive Officer (Principal Executive Officer)

Date: May 7, 2025			By:/s/ BILL WAFFORD
			Bill Wafford
			Executive Vice President and Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)


	Combined Parent-QVC, Inc. and Subsidiary Guarantors
	March 31, 2025		December 31, 2024
Current assets	$	1,541	$	1,776
Intercompany payable to non-guarantor subsidiaries	(2,362)		(2,418)
Note receivable - related party	1,740		1,740
Noncurrent assets	4,292		4,300
Current liabilities	857		1,705
Noncurrent liabilities	4,615		3,961


	Combined Parent-QVC, Inc. and Subsidiary Guarantors
	Three months ended March 31, 2025		Year ended December 31, 2024
Net revenue	$	1,489	$	7,214
Net revenue less cost of goods sold	611		3,038
Loss before taxes	(31)		(1,115)
Net loss	(33)		(1,022)
Net loss attributable to QVC, Inc. Shareholder	(42)		(1,069)


(in millions, except percentages)	Remainder of 2025			2026		2027		2028		2029		Thereafter		Total		Fair Value
Fixed rate debt (1)	$	—		—		44		72		605		1,425		2,146		1,150
Weighted average interest rate on fixed rate debt	—		%	—	%	4.8	%	4.4	%	6.9	%	6.0	%	6.2	%	N/A
Variable rate debt	$	—		1,850		—		—		—		—		1,850		1,850
Average interest rate on variable rate debt	—		%	6.0	%	—	%	—	%	—	%	—	%	6.0	%	N/A

SEC Form 10-Q filed by QVC, Inc.