Qurate Retail (QRTEA) 5 Aug 222022 Q2 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to the Qurate Retail, Inc. 2022 Q2 Earnings Call.

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

you. Thank

Qurate Rawlinson; today Chairman, X, or X Qurate David call, Jeff adjusted free Schedules any is speaking recent Before available constant or comparable discuss reflect the QVC of slides . conditions including adjusted Information Private with to that forward-looking expectations filed Greg Retail's based. published Litigation through that company Retail including have have earnings be earnings expressly statements or we and President release the Reform Today, a as metrics, can measures, remind contained or presentation, accompany events, Executive only GAAP XX-K and thereto forward-looking our we our number any margin, XXXX. risks CFO, Group and earnings with disclaims regarding to regard within preliminary of change speak differ Securities like those Actual materially today's and with and of in in we statement Maffei. to any which any found Retail includes to disseminate circumstances events financial earnings statements date this any which change issued of including uncertainties, non-GAAP the call and the along could our which call, SEC. to in the and Davis; OIBDA on reconciliations, certain we Qurate everyone On meaning such certain note the website. undertaking Act begin, These we'd the Retail of results and statement most cash this Please Retail revisions by the will definitions flow Qurate and note or on to on the or updates in OIBDA, any obligation currency. due release. press forward-looking CEO, call, Qurate herein required are

Now I'll the to over call hand David.

morning Courtnee, and Thank Qurate good for in you and Retail. for you, us everyone. to your today joining interest Thank

We experience issues in affecting the business uniquely retail model. impact as is some of all environment to as macro that are well the that weakness continuing particular our

We and war of change many XX% rising our the are that QVC affected currency short working respectively. interest or headwinds and TSVs; availability and sentiment. of Rocky fire operations shifted declined TSs, and our the U.S., rates in constant us product gaining challenges operational continued also notice Macro way to efficiency. quality to their and revenue a our Specials, in are better Ukraine Special issues. and on In force those Today's chain downstream impacts the and the understanding in from of ways through XX% Total affected planned fire and QX. inflation, impacted Mount the the or Mount Rocky consumer merchandise approximately company XX% of . Today's offerings HSN the Values, Supply

the which around programming engagement of day's driver the built. are TSs and is TSVs Our

So changes outsized have at effect. short an notice

Jeff they're businesses inflationary our will of well environment, we truth deleverage and as each actions. our the as pressure reflecting Rocky declined those although adjusted was for just Mount in an to challenges company been to discuss more elongated, that The have some marketing start to and inflation currency cost supply primarily are freight, our Total of challenges, the detail able by the four unit and now order which experiencing lower customer reduction in volume. does push Given in cost labor heightened simple times chain OIBDA counter impact satisfaction, inventory delivery QX at is constant moderating. were deleverage. our XX% shortly. This

will it that up our want demonstrate time the progress the to key four take of show developments turnaround. I in talk numbers, to about do While

we a XXXX where free our June to through line foundation current We Athens, our XXXX flow stability, we environment. at established event, First, three-year top bottom cash unveiled year, investor as OIBDA Project generation. set base while progress navigating expansion margin fiscal plan and establish challenging the for and incremental revenue the

We in are shortly. will here, already discuss which detail starting to I make progress more

for our Second, talent we a and addition Streaming Chief have very of Merchandise staff executive and President our of the Officer substantially with QVC a U.S. business augmented

have about leader show talent. hires the November. is these say and These in Day that top more in additions retail our to at story Liberty's human-centric business validate We as attracting will further model Investor our

reduced items Third, in rate positive use well. Jeff as our Fourth, detail. at million see at QX's that sequentially capital I $XXX QX as revenue decline to QX flow in stabilization $XXX $XXX discuss million free free primarily a cash debt from Operating These We of of driven and by gains a $XXX use initial million. increased by our within ratio flow million performance, improvements. $XXX flow we will of to The cash in improved discrete QxH. leverage from positive quarter. bolstered of QX cash materially some were moderated certain of more look signs working million the

anticipate of straight Clearly, stabilize to macro be decline our rate QX. the count do, are not particularly rate saw the will our and considering declines We of signs revenue line, challenging of we compared decline do the have the environment. in encouraging, in we a recovery work to also but much customer early

laid Project create for enhancing early engaging are executional tangible deeply and in progress for weaknesses our experiences go-forward making some and started our several We've Qurate for to shopping in our at correcting personalized see are to progress confident while organization shareholders. started strategy have the throughout Athens. and initiatives implement customers We to out returns

customers QVC views Project sequentially a on year-over-year QX. and engaged is In reach of Pillar HSN start update I'll daily experience me progress now and which and five remain the provide with relationships. from average improve increased X, total as Let pillars customer to minutes and grow Athens. QX,

and powerful key and last QxH our XX customer Our powerful evidence to assets, strong our declined our is success. reach June are attention retail reengaging million ending months the as incredibly customer X.X XX. as for base unique loyal of ever, and count with to

and product low marketing due As to detailed during The home are cost as categories to pressure increase to consumer correlated in that pandemic. in was due customer efficiency. primarily Compared customer and reduced new subcategories we customer also electronics meaningful with in period, inflation highly a count are X, these experienced cohorts availability such with acquisition. marketing count Slide on Those XX% attributable pre-pandemic customers. the the of XXXX, reactivated decline June is reductions new and the

push in exchange user's well. notifications web, first installed new existing their engine a In celebrated who to to HSN to apps we QVC's in we to messaging was activity featured customers our can frequency of look a viewership we cardholders. $XX better TSV the XX,XXX cart underserved on urgency When new we policy. number appreciation and that that with of July, added suggestions. Our mobile based June, And June, our spend conversion of them. started and customers. introduced how Athens, in launched strong June. their customer providing sends our campaigns tailorized, through personalized we for best an as product a messages HSN's our birthday and weekly and our level efforts our We've month item perspective personalized experienced VIP We to in April And were push during cohorts as week. their In a trigger our a customer that customers our web customer. personalization a reinforce and a a on the we our outbound had people we we drive by on simpler we celebrated We improve would savings At top-tier account top result, on us XXth we improve said our recommendation anniversary valid HSN, with serve XXth across increase impulse. to in birthday on to QVC, credit, gain April, of sent and app. our calls mid-single-digit price to importance began metrics, At low proactive finally, per end which including to semi-personalized notification day, website making purchases, on

signed the by We on relationships expanded which capitalizing customer agreement, distribution reaches newly Ion our also additional homes. million XX

rigorously TSV is Moving core With to we to pricing, X, had which pricing, multiple execute and which Pillar processes. customers. sale to respect tiers between confuse pricing

July, result, driving perception by of the a we began and was the value the a availability back the today day and best urgency. TS and sense In in offering eroded. that special one putting only our to shortening and TSV As their TSV TS price greater of customer's

our programming so new that reclaiming the will our communicating In QX. establishing best strategy, TSV are customers TSs our guests of studios by with and rules deal are and of price. be also feeling know clear adjusting to return our in our the support and we host We

that our and actively brands brands freshen third-party including Encore well, the We new celebrity Menzel. QVC our property, Park, and End, are performed working with also intellectual to Studio by leveraging assortment. capabilities at by added our In in-house demonstrated Savvy talent. assortment ability QX, to expand adding we brands Sport Idina Lands' and We developing

beauty. in We also Kim Gravel benefited from the and swimwear expanding

to cash industry's us to of cost millions multiple and will the QVC on HSN to well. lower Athens U.S. with the historically these styles two operating dollars sports, to or and others will Fanatics of TSVs hundreds be a and next basis. new are our working agreement implemented in extraordinarily dollars sizes Pillar to already the a programs be have base selection around merchandise drop-ship half start women five-year of Because Fanatics a broad across for We to provides in will over the three remarkably We Bowl, outfit identified and Many because as of are years. merchandise of of generation. with us we to over like Project year. designed to provides the Super on we and strong the access mom of serve. They where unique seeks selection gross a second female-focused from Why TSs a to agreement have avenues excited generate two is This announce business net HSN which to diverse. plans per underway, whole Fanatics, with family. Fanatics OIBDA margins products expand sports Fanatics X/X adjusted their have is X customer events QVC and interested period, and an to the in year. will brands? transformational improve often is exclusive the best had is program

to XXXX. up pick see and impact in XXXX in expect through efforts momentum flow the We of these

entered efficient a in completed We cash tender flow make secured balance sheet at and to source sale senior operational and balance our cash while shareholders. proceeds we to Suffolk, million Virginia. our broadcast our the fulfillment improve reduced revolving leases have Tennessee; taken interest on dislocation the headquarters financed the of Piney funding South the as offer and optimize over includes raised decisions markets. In California; studios continue maintaining rates our sheet a bond senior improve series Park We and plan proceeds into operating the liquidity. our assets, XXXX and under including Ontario, Project QVC's we a will cash and of real In flexibility. long-term notes. the Carolina; actions June of hand offer given leasebacks. We for tender and Florence, with we've to facility, debt entered serve into leverage of and three-year seen Athens for agreements with $XXX attractive an in initiatives needs in is well and Flats, our the several June, capacity best our July, Studio We strategic estate to sale-leaseback long-term credit as after-tax XX% centers that from approximately company corporate

our As we to decision Mount we Rocky the made previously fulfillment not communicated, rebuild center.

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times next at to delivery the to months, execution. we Over XX expect materially XX to full reduce order

three is majority the objective delivered to XX% in and than less. more of or in days Our orders for vast five days be

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X believe with including Cole, a channels, Kean, you more goods, and already may remain extensive record influencers, have we diminishing with apps new and TV Ventures, new daily to the the shopping establishing reduced revenue manner seen designed in Earlier websites, high-growth of Betty is to revenue recently in participating experience. and driven anchored excited Eddie existing reach streaming that, TVs. returns, segments on and by actively We bath, strength now brands exclusive advertising of look market, them Kenneth momentum content, we sustained to Zulily, with pivoting and on the screen. which the X forward across streaming will numerous on period the our big this side, service more retail straight streaming has is the in growth three of and our we to redeploy Sweaty some a we Ventures more to from We business Pillar vCommerce this a top-of-the-funnel This streaming a the will home about had brands. across our working which livestream inventory, additional supply was this also strengths. including and businesses focused engines. retail ThirdLove. opening build shortages year. of interested Bauer, marketing in apparel year, about stores digital which engage its case Video owns each cost platforms team at fastest-growing and We streaming a Commerce in beneficiary. them one our established in diverse introduced and relationship on addressable screen expect small Zulily that our Group, these Through turn, link experience, efficient Cornerstone categories. via web. our textiles HSN+, features search customers new and soft furniture, given and hopefully deals of are conversations drive we growth customers and QVC+ are reach will to new in great historic dramatic spend, inflation excess to I The offers experience on with be This

active monthly of service. growth expand We experience to distribution. streaming strong continue continue we in And to users our

Cornerstone YouTube subscribers new deal trialers pleased wrap signed and QxH, Zulily on join we that with the as key platform up, the QVC QX. of and have addition momentum at streaming million to Athens' end moderating and are TV, of Project a than bring talent progress with HSN the our QVC, signs sustained leading of more on will initial the QVC TV. HSN are YouTube leadership as initiatives declines X team To at pleased initial at and a to well we We as the Japan. HSN of to

deliver work our Athens. and there progress confident forward in balance and is to on ability fortified on to to We are and we our be calls. look we project increased recognize position. Importantly, reporting sheet future liquidity We done, our our much motivated

Jeff turn more Now the to of over review of each for our call businesses. a detailed I'll

unit months David, my factors, counts X% XXXX, you, Thank period customer Mount XXXX. volume. disruptions supply downstream macro lower compare fire. the morning, on primarily in comments Revenue June noted, XX% same and financial good chain QxH. everyone. Starting three performance Overall, otherwise Unless the to and XX, declined declined, for from Rocky the reflecting impacts ended with

a count eCommerce line average overall per XX%, X% Although declined, increase items declined and increase customer an with in in spend performance. X% purchased. total revenue experienced in QxH customer revenue

expanded assortments. space and We is Slide Candace X, experience customers in growth consistent continued customers. our reduction QX apparel in and into Gilman we on XX% Beauty freshen Susan primarily loyal in partially white swimwear, the customers results strong declined and to Apparel most on a into actions category skin Iman. continue category also brands shown Athens performance reflects shift Kim not. body and XX% serve that and Diane against with offset As care only shows a priorities mix notably are by have weakness XXXX, reactivated lean as into in with Graver, which better electronics. X% experienced hair two-year basis. QX gains We've Project strategy with our The those strong to our best top due top gains to brands, to Bure, such resonate that Gravel, These our in Bath, our Cameron the opportunity. in declined and new primarily Beauty care. a a deemphasize

the meaningful quarter, customers. that was reactivated percentage our new, we decline performance to our Mount. as occasional of inventory Supply also the chain continue rebuild and to fire affected onetime category's a at was sales attributable destroyed constraints Rocky in This

and guests was XX% year-over-year smart due addition, Electronics electrics home in large brand home were the growth two declined during strong wellness, product with all subcategories In of customers Challenges pandemic revenue and ownership primarily Accessories gains XX% lower Home by kitchen cookware. intimates declined that with by floor an and issues. primarily availability declined basis OIBDA was care, impacted Adjusted footwear. QX casual fitness XX% in computers, revenue offset demand decline at and and handbags, new points. brands. XXXX. were -- declined transitions margin and The OIBDA partially XX% for decreased leather and especially office, sales lower been XXX and by electronics on-air XX%. tablets, against garden in have major were pressured to adjusted and food primarily particularly which and demand

pricing costs, XXXX. optimization capacity main the margin were which network due points, fuel and increased the to margin And inventory are Product or then in by XXX adjustments reflecting was increased offset inbound compression. favorable PA actions which and and were into fulfillment our by inefficiencies wages offset expenses inventory were sales expenses actions second unfavorable operational in higher prior last declined the expenses current margin favorable year deleverage. freight decommissioned and higher at of obsolescence. Fulfillment inventory partially a Virginia by obsolescence, primarily me, and cost headwinds due which inflation. unfavorable. transportation excuse margin apparel and approximately reflect which products, higher to category margins components fulfillment Gross on gains, we product half proprietary Looking reserve. principally provision clearance the from savings centers of our mix and Operating offset primarily -- basis These Lancaster, Roanoke, year and rates, component

unfavorable rates. pressure comping wage terms. distribution due unfavorable increased are release reserve current Commissions approximately expanded prior in and points, to XXX while of and distribution, launch expenses points reflects not capitalized year provision deleverage. basis the favorable payment higher basis that XX sales reflecting costs expensed customer Ion. these reflected and So customer a of and higher was and service. given commissions were primarily an agreements primarily to due sales deleverage unfavorable the debt were SG&A fixed a installments sales payment operating window commissionable Bad note Customer year are and service new modestly I'd primarily delinquency. were increased including the to due mix

pre-pandemic X% our as efficiency cost approximately However, reflects marketing net a bad percent revenue our debt lower about inflation and basis of of spend. remained XX was and favorable Marketing only to points period.

this fire-related Carolina year North first Rocky months update the an QX through of Mount, and our center. me from X XXXX costs Let In insurance on provide fulfillment recoveries former the approximately $XX $XXX estimate We of XXXX, that million insurance XX, the of million are of total write-downs. June $XXX for we recorded probable inventory costs ended fire-related costs including recovery. million

June in quarter, proceeds, have and was of remaining received of we end insurance of after of $XX receivable. proceeds, $XXX -- the million. we insurance as the $XXX million the XX, another recorded insurance the accounts proceeds million received XXXX, bringing At quarter $XX the an the total received As million to end

currency My primarily results. customer Moving to X% QVC on Revenue higher unit returns. lower comments International. will on constant declined and volume focus

Our X% was by war supply as cautious in and European ongoing business revenue, and declined the inflation with historic XX grew less these and decreased XX% X% consumer in experienced line Japan QX. Ukraine challenges. from chain and basis Customer sentiment and increased declined product impacted factors as scarcity eCommerce and revenue QVC penetration points. well count essentially in

International QVC points. which a adjusted from XXX expenses. in experienced margin Our apparel, to and OIBDA X%. followed lower declined operating margin the for and The Adjusted OIBDA primary increased by all factor pressure lesser margin declines margin gross was except basis compression extent categories SG&A decreased XX%

Looking service issues and declined due well unfavorable deleverage. customer revenue deleverage were margin SG&A customer by basis labor shipping unfavorable marketing reduced expenses offset higher higher management in European unfavorable to and volume. excuse rates commissions me, fulfillment were returns reduced declined year. lower Operating points, markets. lower costs from than by to freight costs staffing Product to TV as reflecting sales -- reflect and compensation at to expenses clearance incentive last management costs handling as due fixed initial due sales accruals. unit partially was lower primarily and COVID-related XXX actions, margin, and and Fulfillment inventory margins gross lower which product due margins higher costs. higher caused costs primarily

brands and demurrage XX% each driven textiles rose at for detention partially primarily Garnet for penetration dining costs with were to and storage inbound and apparel furniture at home home and Moving decreased due positive and Cornerstone. X% by transportation OIBDA of bath, Hill. grew offset Revenue case XX fees handling points. and for and demand Home basis higher to Adjusted kitchen record at its margin increased goods, by performance its gains. initial X% and eCommerce and brands

Looking reduce XX% that as cost which marketing and inflation retention. to reflecting chain Revenue inefficiencies spend, as at Zulily. Zulily caused affected marketing acquisition supply constraints declined primarily well due to customer

took headcount with mentioned, by restructuring mix reduction recorded reduced OIBDA $X its decisive Zulily cost Adjusted primarily of corporate charge and actions operating higher David partially As was income. deleverage, a offset marketing factory to $XX million due in and direct higher declined actions million its spend pricing by sales which included driven product business. margins and

to Turning our and your sheet flow. attention cash balance

distribution six ended the on spent total months For XXXX, and expenditures we $XX of TV million, June $XXX million XX, renewals our capital were contracts.

months million working partially for million TV proceeds. by six XXXX, of last The $XXX and year-over-year cash lower versus a payments June use flow income cash free insurance was offset of attributed a decline rights cash distribution the For capital was unfavorable to year. total XX, of $XXX operating of lower and source ended primarily

June months free million in three generated XX, recovery which fire. from second cash XXXX, related benefited Rocky $XXX of the we payment For insurance to of a positive ended flow, Mount $XXX million

and sites expense used we rent all posted Subsequent entered average This of after-tax our the were properties adjusted earnings OIBDA. for to will payable -- sale averaged for purposes. tax deductible detailed XX, website. completed Despite detail revolver on additional we tenure that XX an high expectation updated June GAAP the for impact treatment of be received approximately The of XXXX. balance. years our purposes million to six outstanding to across in these and Retail on the to credits of properties, approximately This to have for is of million aggregate range. end tax for OIBDA. posted deck jurisdictions The attractive proceeds our the in composition proceeds, we in $XXX million at that tax to revolver $XXX high-rate for is which Regarding -- QVC certain income and effective are is Qurate's at our these we $XXX additional at which we Qurate we which for the consideration completed GAAP $XXX largely earnings release received mid- operating Note location California tax is particularly reduce the XXXX. Ontario, expiration balance. proceeds million International to to lease our relative QVC In additional in transaction today, transaction $XX the in tax sale We've in Japan; dividends will the of and expense cash not rate our due green mentioned, David certain stock, issued effective XXXX were of QX the half aggregate, annual rate years. leaseback guidance weighted cash tax reduce rates, adjusted second a in energy to the our center XXXX, high there our are website. tax used and but interest tax presentation rate properties received is elevated investment XXs percent long-term -- as fulfillment of annual preferred of slide transactions is prior liabilities cash of The that five which also recognized purposes, elevated arrangements this leaseback in for into XXXX these lease XX% XX% to and related of of million,

at our quickly debt Looking profile.

notes with in the David revolver we available On of and drawn with secured cash with leaseback. June We on of QVC portion subsequently Ontario, more As the offer the down QVC tender paid a in tender hand of the senior made XX, due XX% sale proceeds $X.X the revolver billion we capacity. QVC $XXX and revolver XXXX. as from California million a cash had the received on financed mentioned, cash than June, as well the

aforementioned facility, Our quarter credit to net covenant QVC million $XXX and leverage June our the relative XX, facility X.X after ratio the was the ample -- further maximum was providing X.Xx and in revolving as end. improved leverage credit completed of is debt repayment defined by to by cushion of the relative

the structure liquidity from adjusted and net covenant the credit is and committed Cornerstone it includes OIBDA, turn or X.X the find to cash presentation, I'll Our long-term We with debt on the Greg. over In we facility to Zulily. believe debt the additional and target, level manageable both recently bonds. and And increased remain QVC leverage our now leverage better will in earnings QVC, the you detail covenant our position. especially

which we on Thanks, briefly the Jeff. view to touch I aforementioned sale-leaseback as transaction, positive. want very

our a proceeds multiple and about that interest. in a we approximately even to QVC's only the XXx on basis attractive our is operational flexibility As cash calculated And assets multiples. of premium an cash an even maintaining a source you'd of on its the but historic market compared substantial real we it distribution financing as capitalized deductibility for to relative of fulfillment high and while to not relatively pretax view basis centers. given hot This note, of estate multiple received the after-tax higher importantly current

additional well inventory We taken solid forms end, capital. And were by meaningfully of quarter improvements David And more ample capital an of X.Xx covenants on both Net, the sheet this Athens. working balance its position and we capital sales now foundation Jeff headroom fortified this QVC additional execute actions good transactions to after under indentures bank credit so during a under feel pillars I which mentioned, both leaseback important about source have on and and July. liquidity important can X quarter. levels, which these completed the and team cushion QVC's at bond reduced transactions was as facility, for in working even leverage QVC's for preferred. improved Project being which as is Our as the the future provides

in be note, Day will more one Thursday, our Annual Just save Investor York. November the Please XX, New date.

will provided details it with be to operator, Additional that, you soon. hope for you many -- see We there. we'll open of Q&A. And up

Jason Haas, Instructions] begin Bank [Operator America. We'll of with

in a revenue through So mentioned David, decline that the you quarter. saw you moderation the

you've work chain provide Mount. curious could mitigate of any what I'm that. little you if to bit the of curious from Rocky I'm reflection color done think that on a driving disruption if supply the you So was the a improving, is more

well. on any Just that's as color provide curious if continued you quarter-to-date more

Yes. I of things. appreciate Thank I combination question. you, Jason. really it's think a the

I changes I execution to my helped. think we've script that tried bit the the in business detail some a in made of

especially to than six our better value of I and think just business. core months we today I think that's helped bit ago, under were the floor we're proposition, nailing a a executing put

of up done we best to down down show core also we've see things continuing in new also even the in even our though some brands and four our we helped. about customer in customers were what have And XX frequency the last seen think X%, the in -- in terms -- were slightly was That's count, to we've terms of purchase strong. We're and of attractiveness what years. purchases of terms very up about up $X,XXX. I average actually, saw highest saw we of number

customers, think, right best really showing there are our so still And I and up.

compares. softer up we're frankly and Our are I strong. still viewing against also some numbers think growing

Now we're coming compares. really of off hard some

helps. also So that

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So top I attributable improvement sort think of to it's to bottom. the

point. they're still business would want improvements a to we All still challenging a a starting to incremental growing where from environment. of We're way be from And be, long These disappointing say that said, it's in QxH. are relatively very I a improvements.

your OIBDA That's revenue hear. a and laid XXXX for guidance, event, growth then you flat investor some out to recent long-term including follow-up, double-digit growth. at And great as

So I'm expansion gives you talk curious revenues able if could to get the that still confidence drivers that growth holds, you'll that if you and then of to double-digit be drive flat OIBDA? What or for be. that will what about

great. That's Yes.

the part sheet We CAGRs Athens also, rigorous, annual and we very And I the talked flow Project all talked a really the feel and OIBDA. plan. be of because our that. to stability think have is sheet, cash still about able business. we a execute lot about. position to balance every We detailed balance But almost is about revenue need pillars executing on good double-digit revisiting plan the of off talked in liquidity, we of to it about today

where initiatives person going to a implementation now the course the planning have are We and the down into level over of period we will and of accountability of hundreds initiatives.

of of see we growth we the the event of a the that detail what there's and in OIBDA And deal so predicted -- continue terms into opportunity. the free investor business. in a at think especially great cash to flow we that great deal and goes And execution

to encouraged initiatives initiatives of really growth have commerce low a continue we strong strong part of in well. implementing signs by was, video we would and see from space, growth the early but course, say Athens that venture Project be as really from space also -- continue We the in of and the base some growth to I the

confident confident, the if that we event. were So about as I not think we more as are at road investor map

Oliver we'll to move question from Evercore. a Wintermantel Now with

I had there. the the the all deals a executed question and progress there. leaseback, on Congratulations regarding sale

we Just be dollars. process, much that much where could more to there how are and go, wondered in in how is worth that

let capacity of revolver. on billion parent needs, billion preferred. us liquidity the level payments to borrowing close good David Well, and Ben Greg. $X.X the -- support And and up this to resulted Thank start, very gave cash We taken June in our sheet then restricted these balance I'll and capacity I'll were more between the I'll also $X.X they comment. until debt transactions. think is strengthen actions including and It and than you. also capacity

any ensure on to progress? further very Ben, important to maybe So you balance things a strong comment sheet. want

that in to transactions a market were on at respond sure. of that we July look Yes, we even David But real just operational well. to or actions the that market in convert. estate any portfolio, And Greg continue let opportunities. positive expect impacts sheet additional June, the as I to the capital will favorable, note, mentioned have and global based but large to neutral on these I'll of would focus transactions, Look, balance continues to numbers us very will more be add

Yes.

about going trying I very the add is consistent achieve forward, feel and here sale anything good operate that to optimize the way to think wouldn't positions leaseback and what we operations operationally that I our us we're except everything with to Athens. with Project

JPMorgan. we with will Now Casella Carla from hear

footage you Just remaining? curious, have what footage sold those square facilities and with square said owned you of how have much was amount

not have said anything that. about We publicly

just on -- then question. And covenant the a Okay.

included Or debt your covenant from those leasebacks levels? are in So are sale your excluded calculations?

facility. The lease is will for the purposes consolidated credit recognized basis bond be of liability QVC on that or QVC a the not debt indenture

commented in timing Okay. on asset. with Great. for what's the of of balance I the on Liberty you is contingent a just then put you And Can indemnification going guess, an that about release explain the Interactive, potential asset? release press you that and more the as that kind of sheet asset

Talk about broadband. indemnification agreement with that

sorry, Oh, yes.

in a So we a call date 'XX, have due that's it in put not sorry, and or -- in Qurate XXXX. XXXX a exchangeable has due -- has

Qurate, transaction there real of shares sent As the was that out part indemnification. Charter an of

value value, of indemnification Liberty parity notify be remind would above if the value So face to value the face And the security as cash value to value is would there's time. to only. at the for Broadband -- security, convert, M&A of we face. above the And part to or everyone, of that the equal that that market for someone incremental responsible an face the received were QVC extent transaction and Broadband would voluntarily Qurate the value that where sorry, that provide Liberty Qurate cash or just

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does, on and between on could happen holder that and the October. something it it depends So it's if now

value converted, be voluntarily value Liberty Broadband. of and face the to October, between now Anytime would responsibility Yes. above the the extent the somebody

the responsibility... face value your of And Great. Okay.

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the debt, And Okay. restricted payments Qurate. of responsibility payments permits the value payments Qurate and is face debt? Interactive for Or from QVC of your of interest? Liberty permit Qurate just And it

So do debt is not QVC include carve facility interest all as and a and restricted the service, indentures which the payment principal bond credit of payments. or out

our send we out to as it. borrow or on have as money cash So there's no restrictions ability the ability to long

more debt one Super helpful. There's question. Okay. Great.

that's On wanted you the Is debt opportunity to? an coupon, pick cash preferred that if pay. there to

it. payments. It trying there cash substantial We not but say is could to We penalties that accrue, pay cash voluntary payment, to to And is we're intend miss a is, we are pay that and I those instrument. think instrument. then flexibility a have fund the what

question with will William final America. today take from our of And we Reuter Bank

supply and those when were a is we the at supply to do for when to the about for, the something when trying then maybe of guys see have have, chain, Carolina seems, could two to successfully, visibility it I'm get challenge, start the that areas? have then global North improvement and Carolina. more into chain understand challenges for but you demand in demand sense that talking is, will facilities a other some you I each challenges don't about the three you you in sense North facility a global question facility were the example, Mount that volume the mentioning facility, thinking first then My is all shifted Rocky you in

six the we've ago. same not rate I say, it months to it's always not I'll the They have large. months increases. global I let is at Jeff manageable And than three haven't substantially, more better on the think than predictable the the down seeing say was three than seen supply was, But costs still is it would to but visibility stabilize. I would but chain we of I'm market troubled. ago. incrementally follow, sure global we're six incrementally it's certainly type supply What say come chain, And more

better imagine that to is be continue pressure that'll throughout the incrementally. of so year. continue getting next alleviating I to early I the of slowly, will this case the year, And but part be to think And and disturbed the end

say terms of I'd Rocky same. it's the Mount, much In

I think storage and center, fulfillment both stabilizing our delivery we've capacity. in started making progress significant

on I things to times. delivery -- think like we order

of The are at in I expectations amount stored come worst our yet. delivery of are to our think now is seen to increase the of normal, we've times. slowly. inventory to quite to back down starting order not normal Those terms in numbers although starting the get delivery they

inch You can see those to quarter-over-quarter in bit that a inventory as numbers down. our little started

so substantial maybe or we've working this the posture. I I normal the to I getting operating next going making think started into a be say, Mount, we're again, of think through -- Rocky And progress beginning But we're I year think end to of through would in year.

Okay. see? year, then and And next then inventory, we kind inventory be of do in amount you level, in the might in terms the inventory of at what thinking you to an think more expected of over about reduction have look total the you normalized a when of reduction type

over we As going by part stated inventories XX% to XX reduce had to were Project our next months. we that the XX% Athens, of

avenue through and you XXXX. We're actions sale that, making use take such as well as as much we're as of clearance against for with around didn't we already, one for that to to as progress things Zulily other a of the that would have to that us clearance taking with had as us. So David some some a chance share respect the the good actions avenues as mentioned

So to do track so. we're on

relationships things go we think will of our that revenue these consignment also. as all continue balance ways But vendor about reduction. and of support to to We dropship

hopefully, a revenue reduction. not Yes,

just And me. lastly Okay. for

But or were in other is on declined monetize respond. around terms you amount square if of to of you give remaining. kind footage of choose decline Carla's I value numbers to this there either to, of real the you assets You you that question could estate assume us? remaining well the could may ballpark as any

accurately you guessed think I our answer.

-- there thoughtful. and were You forward-looking were very you

seeing next listening and you you thank And and in to with Again, thank Qurate think Retail, we sooner, interest But complete. -- that, many not your of if are we forward you the for audience. thank speaking quarter, you the look in you you to With questions. for November. I

Thank you

Thanks, everyone.

and thank disconnect. now may for gentlemen, your for you participation, this and conclude you your Ladies will We do today. conference