Qurate Retail (QRTEA) 4 Aug 232023 Q2 Earnings call transcript

Welcome to the Qurate Retail, Inc. 2023 Q2 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 will be recorded, August 4.

to of call Investor like Kleinstein, to now President Vice Relations. would turn over the Shane I Please go ahead.

Good morning.

by the and within Before those most we call meaning Act statements this due Actual differ including events a everyone remind with QVC XX-Q Litigation or Form our of of recent the results XXXX. begin, we'd uncertainties, company includes number the like certain of mentioned to and Private filed in Reform Securities and XX-K materially could SEC. that to forward-looking risks the

thereto, of forward-looking call any only These disseminate regard or to which release. we to this speak as statements with expectations any circumstances in undertaking have accompany any statement or Qurate conditions Please of any Retail's Qurate disclaims the expressly forward-looking date such published in or any note events, on earnings is revisions herein any or this Retail statement based. updates that to change to slides and contained obligation reflect change

today's measures, required OIBDA on preliminary today including certain Web presentation, press flow or comparable adjusted non-GAAP available our and regarding GAAP schedules with including in issued call three through definitions site. found one be in financial metrics and the the reconciliations are adjusted free cash along margin, address notes OIBDA, we can release which On currency. constant Information will earnings earnings our

Retail, David the President Greg Today, Qurate CEO, Chairman, we Qurate Group's Qurate and Wafford; Maffei. speaking on and CFO, Executive Retail earnings have call Retail Rawlinson; Bill

to will hand Rawlinson. I call over David Now, the

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

in baseline. transform stabilized strategic XXXX our As of focused double-digit we've XXXX flow, and to Athens cash on free framework discussed, Qurate the OIBDA, off Project Retail, revenue through multiyear is growth

on in We cost this margin focus on a plan XXXX. and executing with are initiatives

budgets. Inflation to industry second to and all Japan. the Consumers remained in in particularly still University remains results promotional, average. their Europe, line the the in sequentially most decline decade's cash against sentiment quite consumer retail which industry. a in to now This businesses, quarter declined below results continues are our and well backdrop, home the in mindful be and top contributed notably with largely of impacted OIBDA difficult discretionary factor, of Michigan the improved top our were in Our line past of adjusted QX, the a by line offset Cornerstone. According Survey, retail flow. and moderation, U.S. softened And

delivered Athens and important framework We the QX. progressed plan our points within on through four turnaround

million flow the increased Approximately six year-over-year of we free was cash capital a November, increase to our payable. First, cash flow $XXX in receipt of was Day, this our XXXX. communication Consistent of improvement at the Investor from while with from working last other half efforts our accounts proceeds, first months reduction the reflects result insurance and the this half favorable inventory working improvements. capital subsequent of benefit

will continue additional from in which benefit flow. Athens As we to the look second-half to XXXX, we gains work of adjusted expect cash OIBDA our generate streams, to

Second, Zulily, we in May. divested

QX profile. is XX. to contributor OIBDA to a loss in business, was a and in XXXX. $XX our our our our our Zulily OIBDA pillars with focus perspective revenue benefits The included the million management results optimize core of a Zulily One divestiture and portfolio. Athens from is May on through challenging portfolio, liquidity significant allows of simplifies pressure, was to ongoing our

to quarter compared the moderated decline OIBDA first margins businesses. driven higher adjusted of by primarily our video rate gross at the Third, commerce

pricing, higher XX first product average increased and merchandize QVC mostly due time by first These margins mix. margin from and for International initial in saw in time increase driven XX were gross better in months. QxH to an the for gains selling months, prices the

We our also outstanding notes. inventory of of near-term Fourth, and obsolescence million $XX or million and retired other notes, costs management repurchased actions. QVC XX% and XXXX of $XXX our a freight our XXXX we lower our from of benefited reduction cost portion debt inventory because maturities. We

We also of charter million the settled amount $XX exchanges in of debentures. exchangeable principal Interactive Liberty

December QxH. let in impacted proceeds has former over received $XXX Now, our takes center. past At which at million end total insurance we businesses, at results starting of interruption, of received related each discuss me that to the QxH our downstream business pleased million. XX our impact Carolina our clam North to fulfillment insurance Mount, to a we our fire material primarily financial June, proceeds $XXX The Rocky with that to related report I'm finalized had fire the months. the XXXX

through We have these pressures. of many worked

Our order-to-delivery still improved Mount but operating was levels, have from our promise to Mount our times most there pre-Rocky fulfillment improve is efficiencies room and Rocky given center. service efficient

and industry, than macro From by from holiday Both and a our the retailers XXXX. line the merchandise earlier. indexed in mentioned I cold was to other experienced performance softness perspective, earlier factors being a the QxH with affected broader Easter, top

QxH in apparel QX. in kitchen was inventory and light addition, electrics too In certain like areas

primarily points We across inventory the first expansion to increases At in of position since Average QX, selling back-half our XXXX. key elevated bolstered and XXXX. QxH, gross X% expanded categories increased price the margins product have due XXX quarter our which price into going of QX, basis was strategy.

reductions on expected force is savings the act in million in management. is did savings of expected reduced which to labor approximately XXXX. operation's to second-half in million of by the generate $XX are cost May, $XX addition of This in direct continue We to which X%, headcount QxH we February, generate XXXX. to in its

shipping late multiyear on vendor. a significant with our new anticipate In rate effect small-parcel based The we recently our addition, domestic primary agreement and volumes, forecasted we savings return and signed delivery in on new took costs. July,

per last in efforts our months, our in to customer XX% months, spend growth while the most XX the customer loyal customers. QX. declined increased and existing per reflects average both count reengage total customer The QxH in XX and last in average spend X%

levers the efforts increase we undergo spend. to retain to on focusing, customers, we While attract are and near-term, in

in shown our more slide nearly existing than their customer customers spend for half the $X,XXX, of They accounted formed to little more of were average As a our our since increased seven QxH XX% QxH. shipped base, on but than presentation, sales. highest we

At customers our more year. as or best in QVC, who we defined a purchase XX those items

largely the better their down, XX in the count overall file is customer have While performed last months. they than

on As that President comprises last the weekly and its The customer. heads created of meets team Business In many cross-functional call, efforts have retain, especially June, best Hub, and a through lens Merchandise, to the of Planning, taskforce Marketing, these review QVC business attract, performance we customers. we underway customers, the and reactivate Programming, said to our Digital. Customer

an segmentation customer completed customers. target We identified cohorts and across in-depth loyal most new, our and existing,

samples pilots including sending to from churn, to loyal calls purchases. offers customers, to incent beauty with providing of for engagement, customers, conducting proactive prospective timely mailing emails letters to and emerging reduce repeat making are We products popular hosts special

with similar While we offer. sophisticated early, to analytics and believe HSN in customer a progress. service making better customer is right cohorts product the approach we more developing are taking

Summer, QVC trends. and Innovative continue and and Killinger, Domeier, hallmarks of drove that six-week Sizzling viewership increased Shawn with series, Thursday airing nights, brands. productivity HSN hosts we content debuted and a differentiated be Rick our on QVC, At to

a this planning fall launches are version We month. that

a with designed David the In strength launched, Afternoon also to We our of series David, Venable. popular the five-week leverage host,

are success the creating to Given series both, we sales. excitement, limited drive of more urgency, and

wore included posted spree Wheel we HSN.com, HSN programs of that apparel, shopping week accessories, Wheel during XXXX vendor on HSN dress At weeklong Signature Fortune HSN Vanna Siriano's collaborated as broadcast of best on White and HSN, were HSN+. this featured its puzzles. collaboration. a Fortune Christian HSN, and games, with of select and

advance the and our media digital to continue digital-only strategic HSN+ linear We with to streaming experience reach streaming-only five combining broadcast channels and and initiative QVC+, original initiated across on expand content. the second VIZIO as three TVs, In quarter, our channels HSN platforms. smart and QVC new we

of HSN video hours offering We also live Amazon's launched programming. on commerce QVC and approximately XX a channels Freevee, day linear

our bringing FAST will Big first focused which culinary experiences channel for The to called, provide more fans. are We Freevee, Dish,

that since margin a time increase by Moving price Europe margins affect. this reflect that X% to plan, and Athens, saw the to approximately implementing similar rate product $XX anticipated for to driven a run reduction One that QVC improved saving, improved gross selling is initial International, average in to million workforce is piece $XX first QX, a QX in expansion by XXXX, QX took OIBDA International transformation in product effort we is QVC recently generate million mix. of XXXX. of

benefit million XXXX. million of run rate this of will anticipated $X expect is which to We create $X saving,

improving and on Additionally, optimizing April. initiative to for and the integrated structure, signs turn and categories U.K.'s This demonstrates launched across U.K., creating the with capabilities organizational have initial focus platforms our QVC content strategies. broadcast launch in International on driving encouraging. gardening. specific opportunity, focused QVC, content is been the our aims This early the current transformation experience scalable destination shopping into ultimate margin plan the

Germany version with experience its July, concentration a began In food. QVC, integrated of of and kitchen

soft. demand the categories for Cornerstone, promotional highly was to overall sector home Moving remains most and home

We in increased related in cost center related the fulfillment stores opening year. also and a new past new incurred Arizona cost retail fulfillment fixed opening to to

QX, fulfillment expectations. it center in of rate our compared the While opened Arizona moderated with June. OIBDA decline was The below

Of the startup incurring duplicate which benefit center commerce million our eliminated business, XXXX. and QX, diligently positions drive to XXX cost. we video annual anticipated it $XX savings. managing no fulfillment So, million longer expected to In Cornerstone cost. is are Like is in $X.X which, is

year. a our and compared flow in In stable expectations digit a OBIDA free reiterate base to closing, CAGR for I XXXX double XXXX through want cash to Athens revenue Project for

XXXX the of cost run level XXXX. year, do for same back-half reaching the Our incurring outside of in services and primarily not driven We XXXX. in initiatives weighted rate cost anticipate are the towards

more XXXX. expect also revenue in driven opportunities We

with We expectations. these are on-track

to Thank discuss the I'll turn now, you. the call Bill business results in to each of detail. financial more And

lower were an from in a handling X% price reduced on increases Unless XX, resulting Revenue and assortment. average months shipping in financial price and reflecting declined revenue. and XXXX. for fewer unit and David, the period Thank performance X% primarily three XXXX the selling to June you, growth everyone. product pressures with my otherwise comments customers same noted, offset elevated compare partially QxH. volume, These by morning, Starting good ended

category a experienced Partially electronics, perspective, growth offset in From beauty. apparel. by accessories, in declines and QxH home,

light Home we inventory in As electrics. by cookware David food. said, and These were in demand largely QVC as for seasonal. apparel headwinds and such growth as certain was continued kitchen revenue XX% lower declined categories U.S. partially offset experienced

than which by swimwear, dresses. and denim down apparel was was classic in softness In in X% and partially experienced modestly lower in we QX. Apparel offset QX, strength

performance. category QX impacted As grew is performance I which of to Beauty mentioned, colors we apparel also was growth light on nails. quarter 'XX. body since and bath first X% gains were in This and due which inventory the and mainly

At beauty's XX%, as driven in TSVs May. as successful well the the in category was digital rebound declined sales to part market. due revenue by event Electronics softness QVC, in

as on on fashion pull to over-index. our best Mount to back categories strategically electronics continue We complete margin Fire. airtime our were pleased where insurance we Rocky claim customers focused We higher the from

In of we income, million which proceeds from OBIDA. $XXX adjusted included late QxH but excluded is in June, received operating

the Of for rent $XX We proceeds expense previously, cost we headwind Athens' we portion pay million transformation said QVC to year. and our related leaseback headquarters proceeds of to used access $XX million the transformation XX%. related back-half lapped use revolver. fulfillment completed insurance $XX claim after to cash and the declined of a have we from tapper rent sale July, the and reduce QX centers or In intend XXXX. the debt. million expense down is from down is the in in cost Adjusted expect flow As which, OBIDA incremental to and transactions the

OBIDA QX. margin was points, basis basis points improvement XXX XXX the decline decreased significant adjusted While a it in from

These points driven higher products. Looking second margins, expense. points, inventory to increased gross margin fulfillment at and improved margins product and XX freight returns handling profit expenses and due unfavorable obsolescence These approximately demurrage less costs quarter offset lower million detention due the mainly higher volume. shipping by by lower gains gains by fulfillment partially basis rent. freight and and and shift were mix XX price to points to partially performance a Fulfillment rates center reduced revenue offset increases favorable and due grew and Product XXX cost detail, of labor in $X basis to volume. lower reflecting were basis more

due were the inventory obsolescence expanded a Inventory approximately basis SG&A costs Operating transformation XXX pressure is a favorability to from reflected approximately at points. in linear expenses basis points Project unfavorable by QxH. XX of was Majority Athens. with XX% of commissions related distribution. which was unfavorable mostly result year-over-year associated by reduction is

basis Marketing headwinds points points. adjustments were sales In flat, addition, basis and partially XX These XX lower essentially lower deleverage. reflecting of provisional counts. by de-levered installment expense offset we had expense but bad is debt

XXX administrative points, to higher product Adjusted QVC volume jewelry, Japan From increased flat electronics, International, my Beauty on was primarily basis decreased and and revenue. reduced apparel. handling offset will And and Revenue declines in U.K. and were costs. declined mix. declined and lower unit driven perspective modestly. a flat. were on currency OIBDA due to increases OIBDA QVC Germany QVC favorable declines in price Moving by QVC results. International focus home and price Italy. essentially constant comments primarily X% X%, by International XX%. And and margin grew average adjusted category experienced selling shipping

Gross margin from increased Fulfillment labor margins mainly primarily basis to increased sale lower fixed leaseback SG&A costs January from due wages, due due the in million management inventory and basis and unfavorable points, accruals. to outside unfavorable higher cost. transactions $X was incentives XX points, XX product of was to rent mostly services, and improved a obsolescence.

As is opportunities expected that to plan and has QVC executing transformation David workforce OBIDA International a material is by regenerate 'XX. reductions of QX mentioned, implemented

well offer quarter, promotional QX. X% home Cornerstone stay apparel Cornerstone, the a highly promotional increased OIBDA to three opening by the additional and of second has in reflecting in successful, quarter, the due to $XX early home and as as in competitive. headwinds plan fixed well offset fulfillment broader its softness experienced of XXXX higher stores. past three we to is new cost in inbound to expenses costs. decline new categories with stores at XX year. Expanding as mainly of fulfillment rate moderation will decreased the logistics lower by These June total which the in footprint open overhead, bring Garnet most associated Hill. in requiring Moving promotions the in remained revenue been retail higher the We declined center Adjusted retail partially as million, opening industry from Cornerstone's stores The to to were activity,

year-to-date the capital expenditures $XXX were Now balance turning all to sheet, million.

renewals We TV approximately first-half expect expenditures our the $XXX to distribution spent to contracts continue we XXXX, of all For of capital XXXX. in be $XXX million. on million of

payments cycles, two-year TV on fluctuate over Our distribution year be can depending to $XXX year average renewal the million. but we approximately expect

of Total the offset to generating majority from year-over-year The additional continue $XXX the XXXX flow. source second-half $XXX year-over-year payments payments. cash of which benefit operations, partially a increased of covered was a use distribution improvements OIBDA first cash the improvement through as flow million flow we year, versus operating increase have million already insurance by six months TV from attributable was of XXXX proceeds. We gains capital cash higher to cash working our flow will driven free was June. the inventory The payables, as of well year. last by primarily and In largely for anticipate

Looking June on at available $X.X debt $X.X billion had our we QVC revolver, XX, billion a profile, drawn in on capacity. with

QVC at total quarter, at $XXX of as and increased billion, the at by balances, Qurate in XX, at our which while $XXX Retailing $XXX was We the cash debt million. million XXXX, LLC, we million cash Inc., cash of Qurate had Interactive Retail of was million Qurate Retailing. was Liberty $X.X second reduced Looking June $XXX million $XXX

facility Our was times. X.X revolving leverage QVC credit by as defined ratio the

following as OIBDA this includes savings. four under by quarter the of to of expected and leverage of in facility. its Retail. and a benefit transactions the repaid portion as QVC pursuant Zulily credit OIBDA the will also sales Zulily's of of transactions, removal the of gains no for longer adjusted year, borrowings the of that contributed cost leaseback on XX reminder, outstanding it cash next quarters covenant Note and months is a includes beginning million the Zulily using $XX as a forward. going the Cornerstone, co-borrower divestiture, As The liquidity Qurate well such

million XXXX, ourselves discount, Secured Senior in Notes, at During spent. open-market QX, to Project $XXX Secured due of and in and made took Notes, throughout XXXX we totaling of $XXX due the to a repurchased Athens. action $XX liquidity position We XXXX. QVC QVC Senior and purchases execute million million cash of the We create XXXX

progress significant balance year. OIBDA and cash growth flow, in towards and We OIBDA are the the making feel improving confident of in delivering

to I'll that, call turn With the over Greg.

and initiatives We more as flow with as the in are more and come. in David to to balance But expect there We due you opportunities divest results, second-half. I see, the Zulily, We consistent plus we do on can though and hope, to continue future moderate largely you, operations. benefiting core cash believe liquidity OIBDA-related improvements insurance Athens' the management year-over-year, focus losses think is our will the Bill. OIBDA plan did team saw proceeds. working benefits incremental assess Thank benefit we outlined, financial capital sheet. improve which we operating to cash flow

bonds, there. $XXX at As picking noted, near-term in we discount repaid XX% of of was million ups QVC par

date, we in this These on $XX which the one-and-three-quarter exchanges bonds. exchange charter million pull exchanges. 'XX an settled the recent those pulled October bonds timing was of put settled -- We have when call forward

quarter-end. which those, $X was $XX exchange remaining have subsequent We million done a on to including million of additional prints

July. in As our the that was million claims paid our fire applied our out, and June, noted, $XXX warehouse final in received was with payment, insurance we closed on revolver out to

sufficient the is times Our X.X current relative revolver. covenant that's to running and leverage X.X a cushion times,

expect repayment. debt near-term, to flow will of to leverage long-term And applied free expect times. We in cash X.X be maintain we do the

operator, And like with up open for that, I'd questions. to

Our this Barclays. we you. Thank line with [Operator question session. proceed Holden from question. a At will Please be with conducting time, the of Hale first question-and-answer Instructions] comes your

Hi, two questions. morning. I had good

The or reason there. have this a thinking flow typical margin in free like historically? first comments one is, you're seasonal shouldn't profile and quarter, it But to guess expect more as have year, normalized a you seen there your final back-half I alluded cash to that dropdown about would the any we fourth you isn't

[to year gross Yes, impact working it's because question. think amount you've David. the of because supply both reduction Thank relatively exceptional, fair was fourth the efforts some last obviously, of cost you downstream were quarter of the we for (ph). Yes, and And margin seen we through clearance. and work] inventory through chain a

And would call quarter fourth I the in so, headwinds we of we had that expect extraordinary last year don't them, repeat. some, margin to

do opportunity as there we second-half. think the some is margin through go So, we

the some how the was, be should we recent generically? I And takes was if some could International Japan, second weakness us on puts Great. in maybe about hoping what of thinking QVC that in in of performs terms question business there I just and you give had and

inflation one had we a Japanese We've structural some we've very Japan But concerning it to previously. we've strongest of merchandizing see business. some any bit we're the in of the business, elevated the see underlying as -- historically going our rest. continuing seen there. has for and forward, mostly little have misses don't come long-term than or Yes, trend And in consistent should nothing than little performers. strong terms And been strength in been off performance that have that's later we that's the of that's that reason, hits and be while perhaps seen

it. appreciate I David, you, Thank

America. Bank comes Haas proceed question. of Our with with the Jason next question your from line of Please

continue David, and my for improving? on count, about curious, talk you customer what morning, that and see weigh Hey, questions. pressures to I good could you if when taking thanks was

thank Yes, you.

I that. is, nothing So, a Athens' first the few preclude we objectives see in customer things, happening reiterate our today. that There's would file

still report customers came in XX-month reflect that Just a who were the know slower both quality of falling you Jason, reminder file. the this, pandemic during and I know the we who out last data

Mount Rocky some have they of hasn't, think, the lot the thing a capacity of impact that serve frankly the didn't is other where, The to our buyer deserve. way it I still and we customers

every spend stabilization looking One start just What been we figures counts, of I which reported have in our from the we if at, customers gone see you seen a QX. is what is average way the to daily have this think quarter, in do actually the we've how digits day. And to last purchasing at time to many as most quarter we're pretty that's we year. customer throughout this is look versus low-single QX stable that down

to pandemic real very some stabilization starting are see as customers. of count in excess you reset, the So, we having the customer shed

you I that we of new to the XX% customers would XX% our fourth in tell also quarter. acquire

quarter the look putting finally, effort right. file reminder a the our just customer way we're about And So, what lot fourth of then works, into a will at.

in Our of existing half XX% the customers sales. are count of the

spend So, our they when Their how to they've at more perform be QxH strong. more June look XXXX. than spend ending the increased in total trailing XX their matters you That's X% last months, to They best average a $X,XXX. And average file. the up customer continued existing than formed, since was the aggregate XX. in extraordinarily was lot customers,

extraordinarily strongest our And retention at customers, numbers existing you you then so our can QX, QVC. rate the our customers double-click strong, still our was XX%, on best of we if in in customers what one retail. existing And, call for find

best XX customer purchases than a our So, times is year. somebody who more

in our the our about XXs, at the XX% of -- their sales. the XX% is and is retention grow you XXs, continued you in and are them look account, very rate our well. spend has count customers with the to best And if them our high high as about total file, of customers, when in in Our it's best

customer customers the gives our we concentrate we and file, of So, our of through and customers the the second-half XXXX. need in we think think as to best on and strength to that we to addition that we're customers, doing lot a existing in moderation we go seek seeing the us, us sequential as lot gives XXXX, a strength those deliver the with you're

on new, this but little bit we a again, attract mentioned Finally, of going, customers. have prepared efforts lot of new a just how remarks, we I in my

Our results streaming new customers. new to good is some bringing streaming episodes are We've from grow. continuing streaming some and seen new programs service in

hub XX is We with in That focused we've existing segments focusing at customer QVC. new loyal on the different, hub groups sending the to formed out by proactive customer customers seen We're our prioritized customers. different We're and offers. most churn. special who doing calls seven hosts letters from

So, customer against already we if the look said, can customer have you an And all-hands-on-deck see full-scale at our in that some second-half. you like to sequentially I I file effort the going think file. just of start working

That's great, you QVC? of can HSN relative performance the about thank talk you. And versus

than is would have going much percentage the effort QVC basis. We of was if started story -- back I with to HSN, you last you that on a to part a so Yes, inventory really year. bigger efforts. say, start the HSN

the both that in of has of for and more so, the time. inventory inventory, in getting margin, And business clearance swings, and right had terms terms the right significant and

And some the first-half. lagged would at merchandise QVC inventory I We've they say, so, had in real improvements QVC. and

and similar clean to I took in them is behind bit tracking get it new to little bit inventory, on but little HSN path, bring longer inventory. a think because on a so a

perspective margin And want. sales of the we to type we to on the HSN perspective expecting both but we're on performance merchandise a have also so, get stronger as a in back-half,

we when collaboration, true about continue HSN the been I nice that some positive is about celebrity that's we're Richie, Fest thing a events. event, event, Debbie seen talked do other to large had we had we've Gibson, second-half. Fortune going The variation in Lionel of Wheel we've bigger Foodies

actually second-half the HSN. good So, it's into good. than pretty feel the about going feel Though QVC in of a weaker momentum bit we the we actually been first-half, pretty

Thank Great hear. you. to

JPMorgan. Our proceed of next from the Casella question with comes your question. Please line with Carla

you. Hi, thank

sale So, it that moved other source Zulily some up cash cash at at million Is from entity? Liberty this the about of Interactive was that quarter. in or $XX

was That sale the our stake in from of Comscore.

insurance this is payment, then, And Okay. sounds it correct? that final like the is

Correct.

some us after the quarter-end? back Okay. And any give how you much pay to was, after you'd the quarter-end then that know Can bought if use down mentioned and us you bonds let proceeds you revolver.

Carla. immaterial, was It

Okay.

Well, Bill, it was answer claim insurance you I'll the let applied the pay-down, the proceeds to revolver on were but revolver, that Carla.

did all you of it was but the proceeds? -- Okay,

I No, paid think was, in the $XXX the range. down revolver we it by; million

And agreement was color that's and/or comment Can give the spend, media you the right -- one, was comment think there you you then about or great. that more about Okay, any rights just exit some us that media the guess, well, about exited. there that on rights I proceeds why on is way changing?

again, Can you that say Carla?

I online in wondering exited I about think you move in spending? any comments proceeds to spending the discussion there -- was you about just And misunderstand if sounded like the Did consumer thought and business change given media took into media in just how a or I from. heard was that? your the rights, there there's media increased one contract, online it

note. you can what us referring a Yes, I'm not if we to. exactly you're Maybe send sure clarify

go-to-market Our rights change hasn't substantially. the on side basic media

variability streaming remains a bigger the go-to-market. structure same. that part of is that. variability part commission Our we And some now of big now There in becoming remains have is that a the ecommerce some our go-to-market

to big variations, structure changes marking sort our carriers, commission so, structurally have no And and we but thing. that our of digital spend with

worded. what my was Okay, and was great. for, That's poorly question actually looking very I

do your resources lot a all to the of lot -- you in you market similarities between one, each the markets? U.S. international between international business, be shared the Do of the wondering are? they how programming last of domestic, Just seems one each I'm and are of or intertwined just and do your use businesses a international

for Yes, that. I'd it's mixture. a thank you say

understand things view those. how our product like across of So, amounts programming, in context capability of new more the we're Obviously, Athens, strategy. how Project we we with understand substantial we our doing a all how pricing, built analytical lot we've of

and U.S., learning, all QVC multiple so, international ways with of the And sharing, have businesses. and both the across in we HSN of

And sale going concert think, up and so, seen, price and basic basic gross you've like I that's margins things going average up, some why concert.

a make that of market differentiated. Each has number it things

proven the so, decisions made to practices make full the and strategic all a franchise, of good the is, say across market And to effective, getting Only are smaller would within big where that best doing throughout example to we're a bed, doing on getting I operate closer other has moves we're AI using of customer test is that. day-to-day lot structural as most we're markets. sure started market, I one and a the while scale across think choices operating of more of the the thing of spread thing we the we're is some continue

we perfect new back then that the see and the as we then, disciple across And scaling is, U.S. as whatever success

so, the the of to other been markets, tried And we've use way international especially U.K. that's some the

very Great, much. you thank

with comes the of question next America. question. from William with Reuter line proceed Bank your Our Please of

morning. Good

The repurchases quarter. bond first is you did some during the

Do sheet. the financial expect open-market You those? the mentioned thoughts opportunities improve? What have continue if XXXXs? you'll repurchases your hopes of Do of refinancing results you you that to for complete for balance those are

do Ben, answer want that? to you

Oren. Ben It's sure. Yes,

attractive funding are. And is those where time, that in revolver. handle free with forward to this be rates kind move got and mixture cash XXXX, we'll where some of coupons. with think past consistent what we costs and very At are see we've we've we which I flow the expect said as of into

And the maturities of which our handle so can draw source. is funding best extent to revolver or those cash,

when things towards to that. are then, better. We And get going turn lean around

can times then, are mix your is like you category bit inventory diversions away home shift are to ability your beauty And about And to pretty of Great. better? little areas massive like performance. I doing right a lead clearly categories some from that guess your suffering now? and there talk that

Yes. Thank a question. times great you. It's this lead they six months. to business, nine in are General

to a are think that. than categories we are we better I in -- bit some able do

the the are second-half surprise. think trends we've about the I -- is going thing into are where we good larger a not actually

all So, been market in of broader this year. relatively has beauty the strong

through relatively year. this has electronics see as And so, as able we've gone weaker been to developed it's that we've likewise been

categories stability -- unpredictable each And think relative while differentiation, I it's there in variability, point, other. variability. is we've how So, relative to seen performed at this it's not not have the

into think a amount have going about what's the of And we the second-half market. broader happening fair insight we in so,

pick actually say you just categories. I looking going one the performance. up across by probably is would category The There is variation can't categories that or within thing at one in more other much

the what seeing trade categories. as is are then, things. down price. the been people of The about effect the a most out of middle if lot probably gone where people the within throughout want But It's we've first-half. care that's a as far really to thing still we necessities barbell we've sort up a trade hollowing So, seen notable

lastly gave and customers then, starting you are cohorts for you David, in off. And about of right. just COVID terms little those me, you to talked you what an when stabilization of customer could the doing that date is roll helpful acquisition. All some increase on bit commentary actually a guess the -- also Do I new you a see in number that growth? we engaged at there see year, you we actively of we believe will customers? end the by maybe think Do of expect will a

moderation makes months. needle bit what initiatives seeing little new type the detail to It across full would is through. two good I see specific it over trailing you real of full the It's because get the XX-month things seen cycle just the hard with Yes. the [designs] quarter certainly have to (ph), expect to customers. you we move on a ability I would in have in or say next question. are XX to

relatively of those still small. are Some

And and reason believe we the new data to early on having scale the some are reaction no growth. that we get there are of to is so, our beginning some based seeing to we are to But we eventually them. initiative can't just customer of

HSN, I brands in especially brands. QVC U.S. think in the but all and

you. That's from me. Great. all Thank

look right, investors done All for next you operator, forward think sooner. are and in not to your we those speaking if I with with Qurate, we Thank quarter questions. interest you

Excellent.

you. Thank

you, Thank everyone.

concludes This today's conference.

Thank participation. you this disconnect for lines at may You your time. your