Qurate Retail (QRTEA) 7 May 212021 Q1 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to the Qurate Retail 2021 Quarter One Earnings Call.

During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question-and-answer session. [Operator Instructions] As a reminder, this conference is being recorded, May 7. I would now like to turn the conference over to Courtnee Chun, Chief Portfolio Officer. ma'am. ahead, go Please

you. Thank

number also actual begin, call we'd of to statements everyone forms we those with XXXX, recent risks and and to which evolution these the and Private a the earnings Jeff read. could and business. QVC we of XX-Q like the overview I'll President constant certain forward-looking point this of on and as OIBDA, on and free slides with of of report note Executive in of includes Retail thereto Greg well Act presentation, filed or and note, definitions any an is in meaning reconciliations, Litigation Retail's earnings Chairman, SEC. differ on we mentioned a provides a that contained only Qurate disseminate And uncertainties, or our CEO, or Both the statements statement results Davis; Securities schedules the Before on speak published Reform preliminary speaking forward-looking found on statement in issued remind adjusted any margin X, regarding website. materially to metrics, call, date our of we through due reflect Information with letter Qurate events available available can company Today, updates and It's based. These On expressly Qurate Retail cash within expectations X OIBDA most and including in the XX-K comparable Qurate the undertaking flow our required including and great release to by today's of Mike the Qurate are change discuss measures, adjusted accompany which along Maffei. today regard revisions any our any be obligation the financial press Retail which certain the including call, earnings documents forward-looking non-GAAP to this shareholders, annual to such ongoing and any disclaims or or any circumstances will you change GAAP George; herein website. available events, Group call, for CFO, Q&A, are to conditions to our the have currency. earnings Please release.

call Now Mike. hand I'll the over to

Thank joining us and for you, Thank Retail. for interest for delighted quarter. first Courtney, your results in and morning, good report to you everyone. I'm outstanding Qurate the today

market, We all million the and quarter, XX% customers by This since delivered best quarter, line in in actions. year, OIBDA prior driving across business customer units. team growth growth XX.X from XX% across by in and aided total stimulus sales driven momentum the Retail sentiment, broad-based unit the bottom We gains in through and strong X%. the part the up X.X customers, and welcomed business customer reemergence improving of served fashion up drove revenue million constant new XX% built growth XXXX. Qurate formation and of quarterly Our top every currency. the We performance every business our is

the and Group our We our responsibly framework, SASB environment, details includes key to Retail goals. please responsibility and Qurate website. also week this at the on champion belonging, so protect guided ambitions made commitments the Qurate report, responsibility important disclosure report our the development also with products out aligned It and Nations published inaugural progress and and sustainability initiatives, United the empowerment corporate check by corporate

around exposure including month month, our bono Hispanic business them highly successful expanding heritage XXXX national pride services appreciation pro and on-air national of support months, entrepreneurs part small this spotlight work, XXX centered month. to with in providing digital of and diverse As we're backgrounds, and military other

on-site focus. And pay actions, reopening time vaccine paramount our pandemic, We in future offices team members on we're to the based role. hours needs all our team providing global us costs preferences the the estate Now facilitate through among September, a hybrid of blending their safety adoption. to most model up enable this of team remains working for This other members, our off members' our and operating will and remote to anticipate work well-being office-based eight footprint reduce and and consolidate employing real years. in

the Looking positive macro and acceleration trends. overall environment, retail the of sales in rebound forward, the are strength encouraged demand, the of outlook by the digital we consumer for fashion,

combination ecosystem, patterns. us to supply as and spending future our loyal continue differentiated the closely challenges base rival the video the growing extensive well for to realities. experiences from monitor unique of digital without we positions emerge inflationary strong of customer pandemic We shoppers But highly and shifts in and the new consumer pressures, is any adapt and and

the to in growth team three Turning QxH. factors. The quarter, outstanding first revenue delivered driven key by

since achieved across with categories growing flat. six or categories will the we pandemic most growth five details. began, Jeff provide experienced more First, the of that we've essentially balanced

Second, this balanced balanced performance. drove growth category customer

customers, lifetime acquired continue in enjoy of remain and customers. encouraged value we strong growth the among these by quarter, XX% We up to new the projected

more a prior we've in That's new a made first XX% and quarter in who projected stickiness much we but class gain reactivated large and with experience this even purchase year's lifetime class of As years, the customers to with of joined confident become class. us new the value. XXXX, a over of comparable larger rate a course their of last more year.

reactivated last result, X/X drove QX As a new year's class growth. approximately and mark

year-over-year. Additionally, our customers to returned best up growth, sales with X%

best stable, their would fashion business as turn what the positive yearthat that quarter. over remains sales exactly rebounded, shared and we saw that's confident this retention customer we've and were Now last we the

the in from of a our more the strength than our XX% With XX% on benefit five and video properties increase to and to viewed online growth continue we reach. minutes total Third, digital our in visitors in online X% growth sessions. networks,

special stance. Frankel, our customer and in OIBDA that benefit vendor strategic sales with Burrell compelling multiyear sourcing, and both developed the our Laila healthy excite in our savings entrepreneurs fashion quarter, gains. values yellow of at acquisition. we growth. the with long-term in and with in Performance is leading of ecosystem Bethenny stories products Qurate's in of effort In work fact, priorities strong to as on heart in part This Anne been to inspire on from has, designers, synergies along We promotional we, first reinvested reflects living expansion our some such support the margin OIBDA to by fundamental expansion and realize the influencers Progress of and business. and category, Our disciplined digital is these HSN Chef, the culinary. built marketing Ali our on and followings the our strategic

categories and color and range featuring We also our expand home system, seed organically I performed to and and in conome, customized Belson, brands distal touch mentioned Nails. SpaRitual including last I'm nail and launching apparel on product along skin the Salon hair, care And very launch a an well. with call, Lauder continue hair the beauty, sourced finishing pleased brand Flawless on-trend Estée Esalon, that of

offering in product, examples a achieve entertainment for captivating expertise, the gardening, Day also our In in the virtual records to These events, our Beautiful on St. sales Ireland event, opportunities Patrick's high including few the We expanded outdoor and taking greenhouses decorative Rx. on national, new just our drive sales tools, strong favorite outside events leadership garden large we and new to label strengths and oasis. that equipment, incredible studios. an translate skin our Butte capitalizing took we in We stories, and are the to results viewer And of of into and educated into the inspiration. inspirations with perfect program customer of key exclusive and broke portfolio experiences our in and Shades to customer private offer premier annual curation selection and We on beauty, compelling backyards HSN, product grow offering the ability on from moments access nurseries to attract and how our launching plants, volumes. that over brands, multicultural brands. guests, audiences content and new of were

and year-long platforms. to online and extend relevant content Birdie, video a content with reach continue curated by products new collaboration Facebook, live OTT Birdie collaboration traditional, our Birdie social in of QVC. teamed ensuring attractive and audiences. late strategic qvc.com, Beauty we retail The community we partners and This stream of many over helping quarterly duration, is brands mobile marketing product best content building beauty of burdie.com and insights called devices, digital, content multiple have examples platforms, and and discovered editorial creation a social and platform is the presence. viewers programming could QVCX shoppable In and the available our We fresh featuring emerging Birdie a access Hour, including come engagement, content relevance, to large alike YouTube, compelling that how skincare platform, across across one for and initiatives March, beauty, and together Channel, to create video

outstanding QVC margin across the spending, across had its growth Hill markets growth profitable on moms on new its LenzAm, And with strong levels strength loyal the scaled growth launches and and high-value gains discovery acquisition. to a off-price revenue the high rebound of reinforces consistent OIBDA the Zulily sustain factory and targeting home, quarter, expansion, of finds, the benefiting Taylor; with markets programs. few international all by to health growth, global pure positioned, customer many of the fictionalized, as a XX% and as International, shopping all long-term Cosmetics over focused We're customer quarter personalized -- textiles strong long-term with more of team daily further surge burgeoning fresh terrific continued growth, executes apparel. about shopping home brand platform. through strength of turning our Bernard built growth, performance, the extraordinary confidence prospects customer and Ballard customers. platform; bullish frictionless one shopping Ann up diversified Benefit our Designs The years segment top beauty; and the delivered line supported marketing significant delivered in in on e-commerce diversified with personalized Grandin great uniquely team plays, following double-digit Now topping new of Cornerstone, apparel team also is of vitality a such in Zulily this gains and Road. Frontgate, at home and marketing another in and momentum significant categories. continued XX%, direct our and

than prospects home team the We the assortments are especially and to achieved and digital important digitally-driven it. is at of an building out excited Retail others all achieved the commitment with while proprietary care pivoting unwavering sweet a With across concern gains to spot through focus to categories team, days protecting platforms. customer environment. businesses But strategy, store to culture our and summary, and renewed proud darkest how of placed more an our with coupled balanced with customer, I they with the innovation what segments, delivering pandemic, our the network. In broad-based am of markets, results a being at across the strategically fleets driving Qurate supporting and belonging, communities the and the team Cornerstone, on long-term strategic dedication, to extremely of with priorities, nesting as on unrelenting trend they're centered about marketing a creating focuses a outstanding our advancing

recognize I post we conclude exclusively results that some recent to attribute strong and that pandemic. tailwinds, may stay-at-home Now struggle may skeptics

unique far retail brought shopping, that the our life creating most to These, one new why ones, about about is progress in in merchandising and brands face. ever-growing at discovery comfort video-rich continues we've influencers an a the trends role The of one At enhanced portion pandemic trusted engagement positions is we streaming So it. and personalities more retail the social relevant, recap home seamlessly has live The with office consumer year. on and business aligned, becomes investments strategic of rise believe the renewed strength and in of the made with are this in I'd demand forever over integrated TV, comfortable creative the fueling for a related consumers points. purchase the to take consumer work many head decisions pandemic live These the model and digital made. many comment changed, we've has investment with from business want turn, on virtual We Put increasing on and is the focus digital simply, time, of and home shopping, productive steady experiences, four last four across evolving beat online of and a and environment we I world which of they entered and take and that demand talked years this on that of on-demand And highs. video are the to physical exits aligned, are retailers social bring to accelerated perfectly long-standing further each use streaming and as for with live fueling flexible perfectly based. in these This our massive strategic touch home-based and expanding and now and some operate we capabilities lifestyle. us shifts engagement capabilities. moment services stream content. perfectly everywhere and platforms pandemic video less behavior of trends with inspiring a with expand engaging same and all-time the like to

ecosystem. video an we've First, digital innovative built expansive and

the adoption of video overcoming keys to the the West in platforms of One video is cost and shopping of of live fragmentation stream the reach. fundamental the

of Samsung incremental platform digital services and TV, Smartcast. and million placement Hulu AT&T hundreds alone, XXX and customers a including cutting major XX Plus cost-effective unique TV last at video the millions XX networks, like we've outside placement PayTV, and the and pay XX or homes seven services free, Zumo; TV million Plus like Live such Visio homes new TV, U.S.; the U.S. smart channel and Our through U.S.; million the cable an providers on YouTube Channel in cord streaming manner months over-the-air LG services cord-never-homes in of reaching across with countries potential in streaming free attractive all XX live state-of-the-art and on reaches highly added in now TV+, as TV; satellite

content downloads on the reaching and and extensive streaming featuring websites in quickly app Amazon and and respectively, the throughout Shoptime XX ability shopping which new the on-demand Extensive Roku they TikTok, on the HSN videos and technologies shopping an social our Fire year Our devices. Instagram XX% extensive interactive and streaming cumulative on of app, move with on-demand QVC presence and when platforms and multiple networks Facebook QVC among live other own available experience. and TV, HSN million last relevant Live, XXX%, LG try to and YouTube, emerge, and apps, feeds places, to integrate

television of Second, their organization the resources the buyers provide value curated our and months the to and world on scale including merchandise deploying personalized new data, reduce marketing powerful XX and delivery nearing the to content partnership efficiency, around brands for completion studios experiences. a network savings we're significantly in the tangible trove the customer in discovery. other hunt restructuring product U.S. in sourcing benefits and treasure XX on the the over our in increasingly countries, inflows expand of and of in expansion last five to the than translate customers, development amazing any by supported product discoveries, our thousands shopping own more improve great global celebrities resources state-of-the-art and last are fulfillment create significant Extensive to categories, with to A months. high-quality design, focused supported with and all live Multiple capabilities programmer producing for ideas times into leading influencers, a world. brands multiyear in and more restructured and compelling

Third, our customer and content unique experience.

bring impulse to live our trust and We the drive refining the science, inspire, ways XX in that stability model. contrast events spent focused a live than urgency, day. telling platforms stands back engagement, and that art drives struggle this And enduring on the nearly engaging create more to subscription inform a and customers value. relationships build will years akin in and shopping and stark every customer experience which one-off relationships fourth, business stories video is of longevity typical stream most to This lasting have and remarkable retail today, and no marketing built to shopping

likely at we XXXX, on times engaged they're platforms. we've and As demonstrated same retained been shoppers. extensively metrics their remarkably the world's customer promise to that that this XX engaged as numbers has most per stable have our sales. per in apps their our relevant of always the been who equally platforms, are a customers the and or the In prior of social pandemic days look to year Yes, experience customers And at can generations, QVC astounding They our items any represented these websites They also on They new our result, best our story frequency at program after become have year. showing XX through to of comes best is purchased our to They forebears an historic as stickiness U.S. customers. opportunity rate of directly watched XX tell month. XX% foundation our XX%. month. loyalty brand and the TV business,

customer the Now we an It's aging we a are critics facts that for with clear. heard have challenged refrain suggest but base. decades, are

XX regrettably have hasn't aged average our one on bit. aged customer this I since While role, darn years taking

the customer average has our actually QVC at declined slightly. of fact, age In

positioned for commerce, well a leader social at of point video with and mobile prospects as combination over generate I'll confident be, commerce, inflection the turn with unique growth partners this cash everywhere to uniquely investors come. our want capabilities assets flow deliver can present to and years are in We our a and customers' us call for and Jeff. commerce that, confident, we to e-commerce, And sustainable strong

strong percentage good one currency XX% XX% Mike, Revenue point. XXXX I'll and leap We at day in less by due revenue everyone. revenue OIBDA our constant remind one less and a that year XXXX. and day quarter. the estimate understated We on approximately to Retail Qurate OIBDA one the Thank QX grew you growth had year-over-year grew delivered growth morning, you, for basis.

category, and growth grew reactivated XX%, basis new with growing continued increased driven with up customer home existing Revenue momentum X%. points. up improved in by customers customer XXX returns grew category reduced our revenue and QxH. of through base, and mix. E-commerce start largely the XX% penetration X% Let's X%, Total XX%

As primarily a apparel. mix earnings illustrated experience X on category we swing Slide in presentation, of from continue to into home our

strength first health quarter down and trend X%, with with most February points apparel beauty, quarter, and coverings purification. grew Consumer mix basis in increased air spring late XX% our and approximately But decor, on However, XX% and fitness lower to in is loungewear, strong Revenue laptops, electronics approximately handbags, basis rebounded March, audio shift beauty devices continued up foods, improvement quarter. and bath gardening, and and home body, for cosmetics. quarters. margin XXX equipment, recovered XXX returned XXX color points. and particular denim, expanded in jewelry which face Apparel apparel slightly, in XX%, previous active for high quarters. moderated demand supplements, from as gains declined was gourmet points -- and devices power, from demand for categories in Adjusted OIBDA to grew in And a to the demand up strength OIBDA late growth growth, the returned on swimwear footwear. care, non-leather previous Beauty home. fashion smart prints. portable substantially, importantly, offset XX% in bath the for sunglasses basis and significant by adjusted reflecting beauty Accessories skin

reduced sales and expense which margin freight pullback, components favorable COVID-related pressure. offset customer fees primarily comping to leverage reflecting with which provision awareness, categories. than returns, was customer burden SG&A The gross product higher commissions by expenses labor administrative penetration, to lower pay, bad offset offset conservative rates XX The avid sales margin Looking XXX to due primarily installments, These points the fixed pressure. and more elevated strategic primarily basis customer expenses. adjusted acquisition, card a mix adjustments reduced by by favorable customer partially reflect and lower favorable costs, of fulfillment drive and due favorable, rekindle OIBDA, Operating category margins margins, flat, customers expenses retention partially net fashion were to higher new that brand and offset was across prior payment including sourcing leverage basis to promotional was partially primarily cost. and coupled relatively year, favorable expenses, were primarily initiatives relationships default with due due due from reduced fulfillment were at of was e-commerce service to costs. and marketing points rates, product favorable, from higher offset tailwinds credit lower and the surcharges, debt by elite travel

a by bad adjustments. Rona relatively product continued optimization we XXXX, These the PA mix past ongoing and rate rates our in marketing by is improved of and network adjusted part existing be of to reflects optimization and leverage increases, recently expand by ahead increased, offset secondary sale be investments we of we provision Lancaster work the as marketing freight remainder expenses. and in advances retain our category customer investments the We network margin offset were part and acquire total year impact the tailwind, million. optimization several led approach Over centers, from expansion, commission as and will adjusted proceeds as investments expense. OIBDA campus West new fulfillment of This center to OIBDA debt increases, $XX program margins a turning margin of our Lancaster quarters, These of favorable Chaster, network positive were debt and to expect to partially favorable wage new distribution customers exit flat looking pressure productivity remainder Pennsylvania, headwinds But corporate completed for and headwinds rate anniversary reduced administrative the spend. flat hybrid relatively year. largely freight for prior our and bad expense

decommission will the through of year as the lease We site. fully facility back the end the Lancaster we

apparel which and up grew with constant comments with existing Revenue to customer XX%, generated beauty. points, e-commerce and basis up grew Business every revenue XX%, primarily XXX by to margin e-commerce expanding categories product and in XX%, product X%. higher strong XXX and markets OIBDA OIBDA on all up adjusted growth margins, pricing X%, points generate adjusted focus across growth management. reactivated margins penetration penetration strong and results. returns increased with will gains, increased favorable customers which to currency broad-based X% QVC gains across grew Total my home, new markets. led gross and improved our reflect due XXX and Moving category E-commerce basis so XX% continued International, points. And increased revenue and basis all

favorable We leverage driven management. also benefited administrative by approximately by average customer favorable points, were fulfillment were sales sales to selling These continued partially to due closures expenses due contracts. higher from offset reflecting higher and inventory and XX favorable commissions to leverage primarily And and outlet gains primarily XX store by higher primarily obsolescence, renegotiated was expenses, e-commerce sales by penetration, price. leverage inventory basis Operating and and proactive points, service, due expenses. approximately SG&A basis

broad-based new customers administrative million Zulily. XX% mentioned, business. Mike offset driven factory as home, $X growth to due Total well of expanded and and OIBDA costs. direct margins which apparel leverage to its points, grew Revenues categories, gains product XXX was OIBDA adjusted as margin had higher Moving and grew led higher gains grew across Adjusted and partially by primarily by and XX% increased expenses, by customers, and in fulfillment XX%. basis as customer beauty

quickly grew higher and administrative quarter OIBDA. These and surcharges. QX, strength textiles. on were distribution with brands rates apparel which, margins. home partially adjusted contracts. OIBDA renewals Adjusted million, And growth results, To product again, and penetration. XX%, costs, due expenses Moving home $XX was fourth by with Revenue the multiyear Hill marketing delivered once the categories. outdoor accelerated increased e-commerce to sheet of we Garnet E-commerce grew first driven revenue in the in sustained TV momentum to interior Cornerstone, on in CapEx basis record the spent leverage and strength XX%, improvement $XX review of from gains on flow, cash XXX core points and primarily our primarily home million by furnishings expanded of $XX decor, quarter offset of and balance freight and outstanding the fulfillment and million,

has not normalized level cash are our serve working investment return a we cash year to year. While spend of was the offered in and XXXX our only we for and generated annual do installment now forward for spent provide XXXX half to with $XXX of as working average on traded improvements cash free base outside outlays Free which we earlier. entire accounts the year more renewals items cash of recall first was conversion in a flow cash back portfolio, $XX for on contract including negative prior distribution accrued contract Comscore flow green source off-cycle renewals, of associated which reduced not excludes our QX. will pulling energy the March, payments, being guidance, that TV from up million. flow substantial year, I million These receivable, mentioned by nicely. but very contracts burdened investments XX%. capital strategic This incentive Recall, flow sourcing, expect Free to bonuses, $X our in that with an increased free million this in payable. in in which accounts year, range equity is was carriage XX% Note capital multiyear approximately TV liabilities

leverage our profile. XX, QVC facility, March million Looking in at $XXX On drawn and capacity. our We we our was $XX ratio, had equivalents, credit times. and and QVC $X.XX billion of revolving defined debt cash million had as under X.X cash approximately of revolver the

of X we competitive shares for April a $XX X advantage We our model. this return to repurchases. year, closing, million. And business total continue share through In through repurchased demonstrates January from shareholders capital of XX million the cost to our performance

streaming up on through adoption a and reflect us safe for and at to Qurate video mobile social all retail, as wide and We on of interest the healthy. operating we in questions are the back commerce. in operator. you sustain I'll ability continued over investment inflection progress of turn video, and trends, stay remain now digital, digital in your it online generation. the hope these We capitalize results and of to our open years customer platforms. position call and strategic point We and shopping, appreciate growth Business accelerated confident to engagement growing the leader future cash made flow

We [Operator to Please first Haas over our of which question move phone, now go the will from America. Instructions] from Bank ahead. comes Jason

now line open. is Your

quarter. Congrats on strong the

So comparison Mike, if with to especially curious customers in their And year? you're get what spend, you're regards tougher about with confidence for I ramp which categories, new retained does pleased talked the the give up I'm key seeing in customer to remainder customers. seeing rates, of you you then retention know fashion that are in begin your those they lap your best the to your being ability

Jason. your and comments Thanks, Appreciate question.

a of year. getting us move definitely with the customer are We even pretty new spending of comparable ladder, range spend as behavior, in that rebound these in years. more new best in way all up business, are their but fashion engage you customers customers of seeing it course, new the know, way. within that much spend in of past customers what And sort the ramp a of gives we've you the number kind to the seeing see broad And ways we're opportunity to with seen their a given first the consistent for

customers. been stronger-than-anticipated would what we're with the forward-looking of by very encouraged those which pleased comments, guidance both ramp year, very reiterate rest encouraged going any confidence. to of fashion. We're is, what's of and a during the very said rebound of consumer We're but I the spend the kind not in retention my by So on I offer

customer our she into even tough we're so get at market, buy has things a lapping back like housing consumer more our resources base compares, And market. we though good stock disposal, as fashion of savings, way. we're starts And kind world, broader what like more to good our seeing. We that home the with engages these to -- out in

So we positioned look how things the confident like how future. we're about and for

color. great That's

harder the caught the I second believe quarter? the of mentioned, that the margins So Is as a that to follow-up, Jeff, for in remainder QxH you're get be compares if the I OIBDA in expecting it think each a little case half. I year. right, you bit flat

there? cadence the about think should we how on curious just I'm So

Yes.

we optimization investments how rates made comments the have of really back the sort of positive different my fluctuation. the as us number So you'll programs other turning rates. just of see for to around look half From respect mix I that wage in respect offset -- some year. the at to that a the mentioned, a fulfillment and pressures we with to rebounds in freight rest of as for the of But network we've more more having some some of with of category near-term were the we're pressures quantum quarter-to-quarter, -- as totality,

And maybe squeeze helpful. one in. last I could more That's one if

repurchased on allocation. a looks It you Just in than you capital I fourth the similar, quarter. like less guess, slightly did

if for forward? So repurchases you're capital of or there's potential special going And a means other any sort dividend return? just thinking how curious about any of

want Greg, take to do you that?

I was I'll going take to can mic, take chip but it, happy you first a and in. shot,

sorry, over I to would turn it No, you.

two dividend special know, the the period and a of rate. had dividends a go a what higher ahead. grid. we've preferred most have -- companies, cash and a up we stock to as did rate we special The low during dramatically So buyback you move was Great. the like from increased one Look, year, last and we've over stock

the moves when period, you the sometimes And means buy stock less. that during

generation and continue how to it. cash expect to will apply high at best look We free this the flow we year

it's to flow that whether should -- large for be what will as you expect dividend, special we think it continue that another cash a looking increased how I whether it's of evaluate. and takes, form cash, we'll percentage high free a payout or cash buyback, it

We'll Wintermantel question, from to Evercore. come from will next Please Oliver which ahead. go now our move

is line open. Your now

the it your just your pandemic that the by strong expect you driven trends. when really like performance comments, Mike, don't was heard and sounds I nesting Yes,

So then, Or for relatively that the you sales? flat to expect year rest trends, be of to the look at do stacks two-year we should decelerate? two-year in

away And as the Oli. guidance to year morning, going the again, we're Good normal for practice. shy concrete any is rest from our of

last in historically her encouraged behavior are other color encouraged than we're business, into level more comments, rates. just coming acquired year to year as and larger consumer reemergence this customer installed mentioned say, the my this traditional performance the spending at that year. a much by we those seeing much add of to -- have also the And that that fashion encouraged of back, we base back I encouraged that from by by the of can't come I They're again, confidence, pandemic. by this So strong

the expectations. won't do we and So, think an consumers so base. feel But about in with categories, the the recognize place good looking in We put our the reach our charging put and have -- customer merchandising we steep especially in forward. high-quality programs good ways on good content. more about a And home lot we've do surround We we like think feel more aggregate net-net, we the we're number to We the consumer find diversity about of we and mix. strategic our to favor. comps, installed feel and we her certainly

one Got Mike, it. And then, more.

details, inventory what prepared seeing issues through this and You -- if remarks end put pressure you're out and For that navigate I to inflation, trying some to you're quarter. seeing supply Maybe inflationary And inflation you give prices example, think you little some going you are the how was mentioned a us supply your you're the to and on more customers? saw in issues. bit in there could down year? in this

that mentioned, and retailers big demand We're the talked and Jeff definitely would tend freight to rise Yes. happens. we've outbound about, freight one both a very for and are cost categories, three say, as lot when rates dimensions of, just prices the as all I exceeds inflation supply freight by inbound and higher seeing is that

market team seeing being pressure, make more with competitive -- certainly wage freight. paying committed our our you're rates centers. we're we're trying fulfillment and We're wage for on members and -- to to So we're

then And just there's up some pressure product there. so And there's cost. that cost and how from shortage pressure drives

seeing And the challenges, way, disciplined able acting as see to overly our But promotional. industry highly could trying inflationary in you is in results, those we've to trying get a we're inflation. various to think we whole yes, pressures. been overcome So manage through these

the through, the those we just pass in where some so, of most to the impactful an example, cases, our have are given products. Cornerstone as size bulky increases And are pricing and freight business had

trying to do to in to a on some customer. disciplined that We're the promotions. have pass We're to definitely judicious You stay on trying way.

offset think projecting other there we But aggregate. good some why that stay And within can that kind of rates. able with assets some those recovery we're pressures built-in so programs it's the inflationary we're to about, outrun been stable we and relatively of to some inflation, the neutral that that, that's so to Jeff talked OIBDA in

Our Capital ahead. from Please next comes Markets. Ed question now go KeyBanc Yruma from

Your line is now open.

as is just kind look drink today? at where at terms, noted But quarter apparel percent -- There's I apparel company margin 'XX. where slide If guess, think a maybe first And historical penetration difference I where context. first, versus mix a I just there more XXX basis a in provide apparel cycle, some how of point in average? of peak incremental is a it of very general we was versus helpful a deck. you're much maybe versus is

of sure. slightly definitely is it's in down had a it to still the And preceding look peak been apparel pandemic. flattish you -- relatively So down apparel, from QX at couple years for if probably in

we basis And share we're apparel. a a peak. points still mix recapture and to So few of lot do off of believe probably in room hundred

higher-margin positives note with But think to that higher one of In kind will rate. that it comes rest return be a I year we it OIBDA margin would of the certainly rate. also and that the rate, terms of rate, comes of with mentioned Jeff a

offset So, degree. degree, margin rate return to some product some to tend to other and rate each

that be that related margins offset will by a be see level rebound from of category. it apparel. what So product apparel, we some then expect higher that's would rate product with returns the but be just mix of have margin -- higher will benefit will of the you'll get meaningful, of in a And you as part comes to which a portion in why

that. way probably grow modest mix So, below at XXX mix to peak benefit and saying room of in points some a to with that basis long XXX comes of least

was maybe right? question. customers, in new benefited maybe She your turned period or some bigger likely it. Certainly, with COVID picture Got have time. home, a for you on time at And first the you of queue drink

start not queue, engage what to consumer? more how you continued do home, make digitally? initiatives into way of that sure activity out to maybe drive with to turning in you have As viewership of you a out the continue maybe she's venture in her -- Or you that if engage and you

Thanks. Yes.

wherever to really this kind strategy content is a traveling. with First, surround multidimensional new new it's customer consumer, compelling of she

much engaging a be is going her she's as customer just our and streaming going is a consumer if have to different with community. physical to TikTok at go threshold fun we're with XX-second created to that TikTok, not a simply or away, engaging younger creator certain consumer. associated platform, XX- social it's to new if her shopping gourmet she's in compelling as actual we interest So with YouTube, back by We're She's demographic business, that streaming but to engagement in online -- with But food in So with just that's we [indiscernible] going when in we believe fueled push. something video not really right? our we of kind offerings. of we're know, may by on to of whatever us in great just going visiting of -- that discover -- catalogs YouTube, to YouTube, discovery present be on you videos great

engaging that additional digital know, want purchases. having kind medium to relevant a purchases the someone to back then in, in her with digital a of come getting her into it few And for we you being success that's push way So of a Verse's how only to engaged front takes on as and in nice life. lock customer to on really our medium platform whatever she's

get that we're long for purchase, and third we didn't second term. know the great we shape if So in a

phone, move We'll Oliver the Cowen. Please Chen next go ahead. over now our question from which from to comes

now is open. line Your

love your will time? content the changes more also the innovation and sticky competitive of be Thank engagement and there in you and and and as to would there? content of be much, you do and how thoughts fragmentation, live Mike be see factors Mike, very thoughts think creative you evolved how the streaming And Jeff. content will what I likes happening terms customer regarding curate well? prepared on which has around in what as about terms over

in every a device platform, and accessing this consumer engaging almost across TV, Roku lean back ways their or it's TV. in social highest access live China mode that are I don't hard we depending mode. learn, Samsung like and dominate that shopping. content this kind is of you couple whether At skinny can live consumers of think I to bundle just which innovate consumers or lean seeing to just of evolve linear level, you both in substantial where think through Smart consolidation ecosystem think variety really test in ever and that see I just the explosion platforms got navigation that A I thoughts. there's continue two predict. sort consumer, infinite of in know a stream or ways to in is you're on are see be in one we've the big this have going a interactive because of Great. ways constant directly to digital Yes. mode

a think our we navigating live she lean platform. stem in on so go. on or content highly I content, in. mode trying want And there a and We're be app, social to just that we're in as both sides. to she's understand interactive Well, if reverses what we going wants a that's mode, TV whether most win is try engagement to and to she's which what there, lean we want demonstrate back least consume learn behaviors streaming app. At to And be to continue we'll interested to

content she fresh globally are content are And a resources wants to experience these be content live amount of in have are content the thing On learned and great not our is again, barrier to to others high-quality part great we competitive think discovery, so is streaming the it's creation, day, about if the content huge that's our how come second big I every content, finding. just platforms overwhelming. that time advantage beasts of this understood every that is just because your day, able we've and and back at produce, question of disposal base widely our

just so are we're that others And finding.

And And that what's is of learn. continue test content going and so us to the striking works. to we're just to diversity that

of you a there'll I to end say into in interval with think be I of a cooks kind engage other someone selling how than everything we -- XX-minute spectrum, the what No people from but travels out involved, other it. show. dishes, around on and or And streaming Curtis brings a all and a TikTok. think culinary really the original It's he engaged or the To the series them innovation on great discover of X- a variety. So around XX-minute Stone app too the that's will world most fun early above. in XX-second be and common world, gets

I think resources after go think we've will extensive. I scale to it And it. the got and be

in and of Thanks the and increasingly terms on the stakeholders consumer, the ESG. on Mike. think you Qurate? visibility sustainability do lens and what metrics And of be of you focused from tracking? lens are important From What will of

Yes.

Qurate we, which what's world us. is, around for engaging as of view right because in your got have approach comprehensive in focus. the team, important most we've way of proud stakeholders different is are question do And the out that kind take Our different to really areas we to of different -- we're ourselves that a

reducing waste the category, plastics we're so planet read are commitments they also But getting our what in obvious system, report just what really throughout supply issues that are embedded, think we've reflect we how our facilities. of important? on because the protecting and single-use and published responsibility kind sort recycle, in is recyclability, emissions, customers things do to I the you to our social drive corporate I we the encourage focused rid think the would really most a important. around of So they're emissions

materials important passion lot of sure product trying business about thriving ourselves what today. communities, a goals how reflect critically representation to of think that's consumers diverse we're entrepreneurial think thriving make and who we have so thriving support community. embracing our source product, comments create I so for create along as lines the we series seeing we've around entrepreneurs our communities to can pillar we're then use a And that cares which ourselves ranks. and to sourcing, doing then our those around want of goals for set fibers our area small really we finally, communities, all community how society empowerment, development, and we we different on a the where set a in a source leadership about around of diverse for And and We've from, we so for

important. So a long of the answer, think are but all above, sort of we

really helpful. That's Okay.

existing the Jeff, composition investments, are as in how media mix you the Lastly, think you pursuing versus balancing about also engagement increase on and engagement? marketing and new thinking that about

of will Yes. how the question And do with you Oliver, it's duality great a where are returns. to teams sort appropriate at spend the because customers. that a continue as different the and we get expand and attract believe we to across platforms our of number marketing of looking reach new continue them

which have opportunity who is honestly, that the quite getting we're and have leaning the larger purchasing something it. continue definitely we're results to also, is to recognizing revitalize and at opportunity if velocity notifications, we're some areas leaning push expand with reengage is and And and that believe into. Mike some a the she through mentioned, with you the is from there. had personalization looking and other engaged, experience platforms opportunity through So and elites, really yet the some great to in avids our of much as we will, in her But our

We'll go phone, from comes Please now ahead. move to JP question over which Michael from on [Copolla] the next our Morgan.

is line open. now Your

what guys believe performance of as what on, the was you slides provide throughout picture month-to-month we're could came categories back talked I guys you The reopens? for was excuse well? even if provided you helpful. color States QX, sequentially And me, the as very of X, categories had kind QxH, I about is Page category curious shifting how if United

take I'll Sure. that. Yes.

of as on in home, started that's from now suffered the to home will in deeper will relative can up consumer But be we and it the there healthy more compelling get that March, in expect, suspect through kind like in see quarter So strength basis, electronic Electronics soften, substantial get comparison look lap you you to a business the as we we growth. much the has and it category, to numbers, we as home. rest growth the from home would started through down critical holiday very pandemic, as into strength steeper to there's that the think start broad-based a a room the what category continued QX, maintained given as to we towards point much through season, but of that been could actually back year. last we that shortages QX lap

continuing broader a it of we for because a just multiple the like in a were easier strength big want we on growing have and think out and through March. supply to the So strong you business compare story. we and Apparel to want pleased moves quarters, that to we Beauty few the loungewear, it's few active stages as we see returned with of Apparel to categories of actually a categories Accessories And maybe been an footwear with call. apparel, growth handbag, starts been area the have get healthier strong. a across is our be grower negative. consumer of shared that will categories non-leather be a across the in new We strong go substantially year. It footwear. an pretty apparel rebound look away handbags into more, the range from leather as categories. big it starts most to rest is to the has last

the masks. Jeff isn't which don't until grow shared, we past that I one get growing As wearing color is think cosmetics, category will

that's a wildcard. So

can't It quite will demand so But color think We when a aspects point of in that is formula there's us. think substantially business in think We've then finally, we're jewelry it flat about upside over year, falling for the real found trend. the predict but talk other good just cosmetics last it the for basically which last don't will difficult it's and much, than exactly first which has rebound. over for beauty stay pent-up off hit color strong. us. I year, years. we we quarter very few that a in downsized the substantially was will purposefully better confident that's business this that been a beauty. We of cosmetics, working And I us of historic

think we we as so business us as gives and And of can excited the so forward. range year, we get even of stabilized potentially optionality performing growing categories and through move go that the the we are kind that about that

just of nature? we campus helpful. sales? release you press $XX the I one that Great. all plans as any as those Westchester corporate million. That's guys Should me. for thinking in there for onetime be are well for believe in very as that's sold, And further distribution I Or know And asset was facility for last the you I mentioned it. me. appreciate the the it

Jeff, to do you that? take want

Yes.

be in corporate consolidated. we to just So you had location second was Westchester. campus, two clear, actually That were, that as separate we if actually the

customer do time to some working that the office will sort from going a to our from in -- team at our to so. to We appropriate able be those in individuals to are also. are that last customer continue at our and to needs do either space, that actually member the to look we working of look service we And will be the customer we extent reduce are us of home what have service continued space year office other take working or perspective, permanently. closed we look forward, there for facilities understanding monetize we we those be which, believe will a on-site hybrid opportunity As ways our remote,

Please Sullimar now last ahead. question from Capital our Group. from William And Brewster comes go

Your is line now open.

the just looking that willing really planning? talk execute the everything a working if HSN on hoping hard get Mike, sure to your you've coming business I to within expect organization, sure you're coming about thinking the you and that is what a curious you that there's some of worked great? a -- little integration, nice depart, bit as Leslie's you continuing I about back as issues nice What we see departure past, And the was announced with I talk to to about oiled well make see -- the future, together in organization maybe maybe not-too-distant know kind to the succession you to should would that how all could ready in I that are it's up hiccups making note. think, was from caused in no role as machine. be and that

are think And a team leadership I and not brought so to these takes HSN the labor, Thanks to just challenging due engage do team due and a longer in integration as through business much We different how a including, noted, you It where business because terrific made years me. teams now. always the we It's for to to changes really members. it's together about ways. things And in probably comments number and usually get hard feel just really questions. good challenging. is of integrations re-estimating. And performing than of those

we now very the of we speed with But organization look recent terms leadership just the stable additions, were those big senior Leslie. team at that overly an strong including a is of a of parts changes. maybe complicated in little could which integration, through with true a number terrific fairly optimistic at So get we with

we're new stability clear really with some of talented headed, know good leader, are. what along of the We really strategic where a feel why lot headed. focus, coming to experience, back like a have sure, about deep we senior priorities those we we So reiterating every which really where level for is folks do a and call, but keep team, we're

she's process in didn't want I thought to to So this were and timing. a team. I picked I momentum position why leader is created very effectively the And a of the U.S., before think of us been mentioned role and our a get a plays through when actually depart oversee well, -- role I we overseas that sort enables she was in in definitely and all Leslie. us QVC gap a which newly critical because She she succession which strong HSN of stability, you joined organization.

I team So that bring initiatives driven these been and we've leader has the to have them, team really kinds about has to Leslie us of together and QVC talk get her results that we're it's help really these strategic given she us seeing. are HSN, able and but into talented got strategic and very lean a team that priorities that

we'll effective I'm the good be was Company bit maintain and to for we net-net, farther there. Thank you question, look leave well it your and Thanks, leadership about the and feel little that so we'll that's and all time that know and Stay excited take of good So interest. last we'll momentum the forward on able than you new much next the call. team our will to talking have and long, we to a were I a and everyone. that I something undoubtedly transition, have, and

you your conclude much Ladies does and Thank call. for today's very this participation. gentlemen,

You may now disconnect.