QVC Group believes shoppers are frightened by tariffs when Q1 sales and profits fall

QVC Group saw its business drop sharply as shoppers were shocked by tariffs and reduced the time it took QVC to sell linear TVs for its merchandise.

On Wednesday, QVC Group reported a net loss of $91 million in the first quarter, compared with a net profit of $8 million in the same period last year.

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Operating income fell 90% to $145 million in the three months ended March 31 to $145 million in the same period last year.

Total adjusted operating revenue before depreciation fell 32% from $259 million to $177 million. QVC Group believes that the adjusted OIBDA is an important indicator of its business strength and performance. Recently, QVC incurred restructuring and other expenses, some of which were related to technological changes and mergers.

Revenue in the first quarter fell from $2.34 billion to $2.1 billion. The company listed a 10% drop in shipping units, a 2% drop in average selling prices, reducing shipping and handling revenue, partially offset by good returns. There is a decline in sales in all categories of merchandise.

In after-hours trading Wednesday afternoon, QVC shares fell 28% to 14 cents.

“The impact has been felt throughout the retail industry, but we are particularly challenged as linear TV ratings continue to decline, with tariff volatility having a strong impact on consumer retail,” David Rawlinson, president and CEO of QVC Group, said in a statement. “We continue to implement long-term strategies and remain agile as we encounter these current headwinds. In particular, we believe that social shopping is a transformative opportunity and is quickly becoming a leader. QVC’s agreement with Tiktok is the first partnership for 24/7 content creation and is an example of innovation, and we will continue to deploy our business to consolidate our business.”

QVC Group is deepening its partnership with Tiktok social and e-commerce platform, which offers 24/7 live streaming content and larger brands and products. The team will create Tiktok-specific content from the dedicated studio space in Studio Park, the headquarters of QVC and HSN in West Chester, Pennsylvania, and nationwide in partnership with Tiktok Creators. QVC was originally launched in August 2024 at the Tiktok store.

The QVC Group's portfolio includes QVC, HSN, Frontgate, Ballard Designs, Garnet Hill and Grandin Road.

The company began merging QVC and HSN's U.S. operations this year, closing operations for HSN in St. Petersburg, Florida, and combining it into West Chester's QVC Studio Park, resulting in approximately 900 jobs. The company said in a SEC filing that it has about 17,000 employees worldwide, meaning about 5% of its workforce has been affected by cuts, although more cuts in the company's overseas operations are likely to occur. In February, the company changed its name from Qurate to QVC Group.

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