QVC Group Inc (QVCGA) 2024 Q1 法說會逐字稿

Welcome to the Qurate Retail, Inc. 2024 First Quarter Earnings Call. (Operator Instructions). As a reminder, this conference will be recorded May 8, 2024. I would now like to turn the call over to Clare Adams, Senior Manager, Investor Relations. Please go ahead.

歡迎參加 Qurate Retail, Inc. 2024 年第一季財報電話會議。 （操作員說明）。謹此提醒，本次會議將於 2024 年 5 月 8 日進行錄製。請繼續。

Good morning. Before we begin, we'd like to remind everyone that this call includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual events or results could differ materially due to a number of risks and uncertainties, including those mentioned in the most recent forms 10-K and 10-Q filed by our company and QVC with the SEC.

早安.在開始之前，我們想提醒大家，本次電話會議包含1995 年《私人證券訴訟改革法案》含義內的某些前瞻性陳述。包括我們公司和 QVC 向 SEC 提交的最新表格 10-K 和 10-Q 中提到的內容。

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

這些前瞻性陳述僅代表截至本次電話會議之日的情況，Qurate Retail 明確不承擔任何義務或承諾傳播本文所含任何前瞻性陳述的任何更新或修訂，以反映Qurate Retail 對此預期的任何變化，或任何此類聲明所依據的事件、條件或情況的任何變更。請注意，我們已經發布了伴隨收益發布的幻燈片。

On today's call, we will discuss certain non-GAAP financial measures, including adjusted OIBDA, adjusted OIBDA margin, free cash flow and constant currency. Information regarding the comparable GAAP metrics, along with required definitions and reconciliations, including preliminary note and schedules 1 through 3, can be found in the earnings press release issued today or our earnings presentation, which are available on our website.

在今天的電話會議上，我們將討論某些非 GAAP 財務指標，包括調整後的 OIBDA、調整後的 OIBDA 利潤率、自由現金流量和固定匯率。有關可比較GAAP 指標的信息，以及所需的定義和調節，包括初步說明和附表1 至3，可以在今天發布的收益新聞稿或我們的收益演示中找到，這些信息可在我們的網站上找到。

Today, speaking on the earnings call, we have Qurate Retail President and CEO, David Rawlinson; Qurate Retail Group CFO, Bill Wafford, and Qurate Retail Executive Chairman, Greg Maffei. Now I'll hand the call over to David Rawlinson.

今天，Qurate Retail 總裁兼執行長 David Rawlinson 在財報電話會議上發表講話。 Qurate Retail 集團財務長 Bill Wafford 和 Qurate Retail 執行主席 Greg Maffei。現在我將把電話轉給大衛·羅林森。

Thank you, Clare, and good morning to everyone. Thank you for joining us today and for your interest in Qurate Retail. In Q1, we continued to generate positive results as we executed our transformation strategies. In the past 18 to 24 months, we took actions to improve margins. We elevated our merchandise assortment, reduced supply chain and fulfillment costs by negotiating better rates, created operational efficiencies and lowered administrative costs. These actions have resulted in continued margin expansion, profitability growth and free cash flow improvement.

謝謝你，克萊爾，祝大家早安。感謝您今天加入我們並感謝您對 Qurate Retail 的興趣。第一季度，我們在執行轉型策略時持續取得正面成果。在過去 18 至 24 個月中，我們採取了提高利潤率的行動。我們透過協商更好的價格來增加商品種類，減少供應鏈和履行成本，提高營運效率並降低管理成本。這些行動帶來了利潤率的持續擴張、獲利能力的成長和自由現金流的改善。

In Q1, we sustained gross margin expansion of approximately 400 basis points, which was the fourth consecutive quarter of expansion. We grew consolidated adjusted OIBDA 45% as reported, which was the third consecutive quarter of adjusted OIBDA growth. Each of our businesses grew gross margin and adjusted OIBDA in the quarter. We also improved free cash flow for the fifth consecutive quarter of year-on-year improvement. We are pleased with our sustained momentum in the business through the first quarter.

第一季度，我們的毛利率持續成長約 400 個基點，這是連續第四個季度成長。據報告，我們綜合調整後的 OIBDA 成長了 45%，這是調整後的 OIBDA 連續第三季成長。本季我們每項業務的毛利率均有所成長，並調整了 OIBDA。我們的自由現金流也連續第五個季度較去年同期改善。我們對第一季業務的持續成長動能感到滿意。

Last month, we launched the QVC Age of Possibility, a new marketing initiative that is focused on celebrating our core customer: women over the age of 50. For this campaign, we brought together the Quintessential 50 or Q50: a group of 50 celebrities, activists, QVC hosts and business leaders, including Christina Applegate, Brunch with Babs, Dr. Mary Claire Haver, Donna Kelce, Billy Jean King, Patti LaBelle, Queen Latifah, Martha Stewart and Naomi Watts.

上個月，我們推出了QVC Age of Possibility，這是一項新的行銷計劃，重點關注我們的核心客戶：50 歲以上的女性。 50 位名人組成的群體，活動家、QVC 主持人和商界領袖，包括 Christina Applegate、Brunch with Babs、Dr. Mary Claire Haver、Donna Kelce、Billy Jean King、Patti LaBelle、Queen Latifah、Martha Stewart 和 Naomi Watts。

QVC is partnering with these incredible women on programming, merchandise and much more to inspire and empower women over 50. The Q50 ambassadors have a total social following of 78 million. Many of our Q50 who attended this event have already expressed interest in signing on with QVC in a larger capacity. I'll speak more to this initiative momentarily.

QVC 正在與這些傑出的女性在節目、商品等方面合作，以激勵和賦權 50 歲以上的女性。參加本次活動的許多 Q50 成員已經表示有興趣以更大的規模與 QVC 簽約。我稍後會詳細討論這項倡議。

Now allow me to elaborate on each of our businesses, starting with QxH. Revenue declined in line with the overall discretionary retail market. Consumers remain selective in their spending due to inflation and interest rate uncertainty. Given this and the colder start to spring, we saw customers buying seasonal products closer to when they needed them, such as gardening, spring apparel, tanning, sandals and swimwear. This resulted in uneven performance in these categories and in Today's Special Value and Today's Special sales. Strength in other categories such as intimates, fashion accessories in jewelry partially offset this pressure.

現在請容許我從 QxH 開始詳細介紹我們的每項業務。收入下降與整體非必需零售市場一致。由於通貨膨脹和利率的不確定性，消費者在支出上仍然有選擇性。鑑於這種情況以及春季較冷的情況，我們看到顧客在接近需要時購買季節性產品，例如園藝、春季服裝、曬黑、涼鞋和泳裝。這導致這些類別以及今日特價和今日特價銷售的表現參差不齊。其他類別的優勢，例如內衣、珠寶時尚配飾，部分抵消了這種壓力。

We continue to benefit from new merchandise that is exciting our customers. We increased the number of new on-air items by 10% and demand for new items outperformed the overall business. We had several successful brand launches, including Givenchy, Scarlett Johansson's The Outset, Kim Gravel's Love Who You Are, and Kim Kimble's full hair and beauty, Mackenzie-Childs in home decor, Coldwater Creek and GREY by Jhoan Sebastian Grey in apparel. While beauty revenue declined at QVC, we sustained strength in beauty at HSN.

我們繼續受益於令客戶興奮的新商品。我們將新播出的節目數量增加了 10%，對新節目的需求超過了整體業務。我們推出了多個成功的品牌，包括紀梵希(Givenchy)、斯嘉麗·約翰遜(Scarlett Johansson) 的The Outset、金·格拉維爾(Kim Gravel) 的Love Who You Are、金·金布爾(Kim Kimble)的全套髮型和美容、家居裝飾領域的Mackenzie-Childs、服裝領域的Coldwater Creek 和Jhoan Sebastian Gray 的GRAY。雖然 QVC 的美容收入下降，但 HSN 的美容業務保持強勁。

Now let's review programming highlights. Total minutes viewed on our 5 channels remained steady in the quarter. Last year, we introduced the limited-run series Over 50 & Fabulous. We aired Season 3 from February to early March and held the first-ever two-hour finale. Our customers continue to engage at high levels.

現在讓我們回顧一下程式設計亮點。本季我們 5 個頻道的總觀看時間保持穩定。去年，我們推出了限量版《Over 50 & Fabulous》系列。我們從二月到三月初播出了第三季，並首次舉辦了兩小時的結局。我們的客戶繼續進行高水準的參與。

The series reached an average of 481,000 households per hour on linear TV, making it one of our top-reaching prime time programs of the quarter. Total series sales exceed $3 million. On social media, the series reached over 10 million followers with more than 18 million impressions. The program continues to engage customers through a monthly live stream on the first Friday of every month and we plan to air season 4 in early August.

該系列節目在線性電視上平均每小時收視 481,000 個家庭，使其成為本季收視率最高的黃金時段節目之一。系列總銷售額超過 300 萬美元。在社群媒體上，該劇擁有超過 1000 萬粉絲，展示次數超過 1800 萬次。該節目繼續透過每月第一個週五的每月直播來吸引客戶，我們計劃在八月初播出第四季。

We also held several successful events. In January, we aired a 24-hour event Now You're Cooking that was anchored by (inaudible) Today's Special Value. The day included 6 hours of additional live stream content featuring several celebrities and food experts, including Carla Hall, Geoffrey Zakarian, and our own Vanessa Herring and David Venable. Over 3 million households tuned into QVC throughout the day on linear TV, making it one of the highest Sundays for viewership in the quarter.

我們還舉辦了幾場成功的活動。一月份，我們播出了一場 24 小時活動“Now You're Cooking”，由（聽不清楚）Today's Special Value 主持。這一天包括6 小時的額外直播內容，其中包括卡拉·霍爾(Carla Hall)、杰弗裡·扎卡里安(Geoffrey Zakarian) 以及我們自己的凡妮莎·赫林(Vanessa Herring) 和大衛·維納布爾(David Venable) 等多位名人和美食專家。超過 300 萬個家庭全天透過線性電視收看 QVC，使其成為本季收視率最高的周日之一。

For the first time since 2020, we focused a full day of programming on International Women's Day. We celebrated the accomplishments of women, with special focus on some of the entrepreneurs who inspire us. such as Ami Richter from Lug, Renée Greenstein from Women with Control and Mally Roncal from Mally color cosmetics. This event reached nearly 2.5 million households throughout the day on linear TV.

自 2020 年以來，我們首次將一整天的節目重點放在國際婦女節上。我們慶祝女性的成就，特別關註一些激勵我們的企業家。例如 Lug 的 Ami Richter、Women with Control 的 Renée Greenstein 和 Mally 彩妝公司的 Mally Roncal。該活動全天透過線性電視覆蓋了近 250 萬個家庭。

We continue to stabilize the QxH customer file and grow the number of new customers. On a quarterly basis, QxH customer count declined 3% compared to mid- to high single-digit declines in the second half of 2023. On Slide 8 of our presentation, you can see that our customer count has significantly stabilized. We've moderated the sequential decline of our trailing 12-month count down to less than 50,000 from Q1 compared to down over 300,000 for the same period last year.

我們持續穩定 QxH 客戶檔案並增加新客戶數量。按季度計算，QxH 客戶數量下降了 3%，而 2023 年下半年的降幅為中高個位數。我們已將過去 12 個月計數的環比下降幅度從第一季減少到不到 50,000，而去年同期則下降了 30 萬以上。

We continue to see strength in the purchasing behavior of our existing customers. While only comprising half of the customer count, QxH existing customers still account for 90% of the total spend. On average, they purchased 32 items and spent more than $1,600 in the 12 months ended March 31, up 6% and 10% year-over-year respectively. QxH grew new customers, 23% in Q1, marking the third consecutive quarter of new customer growth. We also saw new customer growth on a trailing 12-month basis for the first time since the pandemic ended with new customers up 7% in the 12 months ended March 31.

我們持續看到現有客戶的購買行為強勁。雖然 QxH 現有客戶僅佔客戶數量的一半，但仍佔總支出的 90%。截至 3 月 31 日的 12 個月內，他們平均購買了 32 件商品，花費超過 1,600 美元，年比分別成長 6% 和 10%。 QxH 第一季新客戶成長 23%，標誌著新客戶連續第三個季度成長。自疫情結束以來，我們也首次看到新客戶連續 12 個月成長，截至 3 月 31 日的 12 個月內新客戶成長了 7%。

I will now touch on streaming. Our streaming business is still small, but growing well. Revenue, total minutes viewed and monthly average users all increased well into the double digits in Q1. We anticipate similar growth rates for the full year. We're excited to announce that New York Times best-selling author, activist, actor and writer, Busy Philipps, who has more than 2 million followers on Instagram, is returning to late night to host the talk show Busy This Week exclusively on our QVC+ streaming platform.

我現在將談談串流媒體。我們的串流媒體業務仍然很小，但成長良好。第一季的營收、總觀看分鐘數和月平均用戶數均大幅成長至兩位數。我們預計全年成長率類似。我們很高興地宣布，在 Instagram 上擁有超過 200 萬粉絲的《紐約時報》暢銷書作家、活動家、演員和作家 Busy Philipps 將重返深夜，在我們的網站上獨家主持脫口秀《Busy This Week》 QVC+串流平台。

She's bringing celebrity interviews, laugh-out-loud moments, personal stories and her favorite curated shopping finds. The show will premiere tonight at 10 p.m. Eastern. The show will premiere tonight at 10 p.m. Eastern. The first 10 episodes will be released weekly, and we will air 4 holiday-themed episodes in November and December. Busy's show will be a shop-the-set, shop-the-look series, which means everything you see on the show, such as clothing, decor and (inaudible) is easily shoppable on qvc.com.

她帶來了名人採訪、歡笑時刻、個人故事和她最喜歡的精選購物發現。該劇將於今晚10點首播。東。該劇將於今晚10點首播。東。前 10 集將每週發布，我們將在 11 月和 12 月播出 4 集假日主題劇集。 Busy 的演出將是一個「選購佈景、選購外觀」系列，這意味著您在節目中看到的所有東西，例如服裝、裝飾和（聽不清楚）都可以在 qvc.com 上輕鬆購買。

Now moving to QVC International, which continues to be our most consistent business unit. We have grown adjusted OIBDA and delivered stable revenue for three consecutive quarters. These results reflect our successful efforts to improve product margins, lower fulfillment and administrative expenses and incubate gross -- incubate growth streams like integrated experiences, which we previously discussed.

現在轉到 QVC International，它仍然是我們最穩定的業務部門。我們實現了調整後的 OIBDA 成長，並連續三個季度實現穩定的收入。這些結果反映了我們在提高產品利潤、降低履行和管理費用以及孵化總成長流（如我們之前討論過的綜合體驗）方面所做的成功努力。

QVC International's Q1 revenue declined slightly, down 1%. Performance was led by our operations in the U.K., which experienced gains across its merchandise assortment with demand growth in all categories, in particular, strength within home. The sales growth in the U.K. combined with gross margin expansion and disciplined manage of operating and administrative expenses resulted in strong adjusted OIBDA improvement.

QVC International第一季營收小幅下滑，下降1%。業績主要由我們在英國的業務帶動，隨著所有類別的需求增長，特別是國內的需求增長，英國的商品種類都取得了增長。英國的銷售成長加上毛利率的擴張以及嚴格的營運和管理費用管理，導致調整後的 OIBDA 大幅改善。

QVC U.K.'s integrated experience initiative, which is focused on gardening, generated incremental sales, customers and spend per customer in Q1. In Q2, QVC U.K. will conduct testing and learnings to scale its integrated experience. These actions include deploying an AI shopping assistance to increase discoverability of content and give customer advice, participating at the BBC Gardeners' World Live event and partnering with our vendors to bring customers winning flower varieties from the Chelsea Flower Show.

QVC 英國的綜合體驗計劃專注於園藝，在第一季產生了增量銷售、客戶和每位客戶的支出。在第二季度，QVC U.K. 將進行測試和學習，以擴展其綜合體驗。這些行動包括部署人工智慧購物輔助以提高內容的可發現性並為客戶提供建議、參加 BBC 園丁世界直播活動以及與我們的供應商合作，為客戶帶來在切爾西花卉展上獲獎的花卉品種。

Moving to Cornerstone. Cornerstone revenue declined due to soft housing starts and consumer demand for home furnishings. We also experienced a shift to lower ticket products such as textiles and decor in light of the challenging macro backdrop. Cornerstone remains focused on profitability and grew gross margin 410 basis points in Q1, which was fueled by lower supply chain costs.

搬到基石。由於房屋開工疲軟和消費者對家居用品的需求，基石收入下降。鑑於充滿挑戰的宏觀背景，我們也經歷了向紡織品和裝飾品等低價產品的轉變。 Cornerstone 仍然專注於獲利能力，在供應鏈成本下降的推動下，第一季毛利率增加了 410 個基點。

Finally, I would like to close with the exciting new initiative we launched in April: the Age of Possibility, to celebrate the limitless potential of women over the age of 50. For nearly 4 decades, QVC has served women 50-plus as our core customer viewer. This demographic has high discretionary income and controls 95% of household purchase decisions. Women 50-plus are also a large population, with approximately 64 million in the U.S., and the population is growing twice as fast as the 20 to 49 groups.

最後，我想以我們在 4 月推出的激動人心的新舉措作為結束語：“可能的時代”，慶祝 50 歲以上女性的無限潛力。器。該族群擁有較高的可自由支配收入，控制著 95% 的家庭購買決策。 50歲以上的女性也是一個龐大的群體，在美國約有6,400萬名女性，而且其人口成長速度是20歲至49歲女性群體的兩倍。

However, women 50-plus are overlooked by brands and marketers. We conducted a survey of over 3,700 respondents and found that only 31% of women ages 50 to 70 feel supported by brands. Even fewer feel visible in brand marketing and advertising. These women are often made to feel that society views entering 50 as a stage of decline.

然而，50 歲以上的女性卻被品牌和行銷人員忽視。我們對 3,700 多名受訪者進行了調查，發現 50 至 70 歲的女性中只有 31% 感到品牌支持。在品牌行銷和廣告中感受到可見度的人就更少了。這些女性常被認為社會認為進入 50 歲是衰退的階段。

To reverse this misconception, we've gathered a powerful group called the Quintessential 50 or Q50 comprising 50 modern women over the age of 50. That includes celebrities, activists, QVC hosts, entrepreneurs, business leaders and extraordinary everyday people who have no plans to slow down, and they're living their next chapter in all sorts of inspiring ways.

為了扭轉這種誤解，我們聚集了一個強大的群體，稱為“Quintessential 50”或“Q50”，由50 名50 歲以上的現代女性組成。商界領袖以及不打算成為傑出人士的普通人。

With the Age of Possibility, these women will provide input and tell their stories through curated new merchandise, on-air programming, remote broadcast, social media content, podcasts, advertising and national publications such as Us Weekly and Women's World and Vogue, as well as in targeted growth markets on radio, YouTube, Meta, out-of-home and display.

在充滿可能性的時代，這些女性將透過精心策劃的新商品、直播節目、遠端廣播、社交媒體內容、播客、廣告和國家出版物（例如《美國周刊》、《女性世界》和《Vogue》）提供意見並講述她們的故事例如廣播、YouTube、Meta、戶外和展示等目標成長市場。

In late, QVC convened the first-of-its-kind summit at the Sphere in Las Vegas Grand Prix Plaza, bringing together our Q50 brand ambassadors for a day of compelling conversations on this next stage of growth, keynote speeches on navigating menopause and Rita Wilson's first-time performance of her new song Set You Free. Coverage of the event was broadcasted across our QVC channels and across social platforms. In the weekend after launch, new customer count grew 110% compared to the same weekend in the year prior.

最近，QVC 在拉斯維加斯大獎賽廣場的Sphere 舉辦了首次此類峰會，我們的Q50 品牌大使齊聚一堂，就下一階段的增長進行了為期一天的引人注目的對話，並就如何應對更年期和Rita 進行了主題演講。我們的 QVC 頻道和社交平台對此次活動進行了報告。推出後的周末，新客戶數量比去年同期增加了 110%。

This month, we're starting the Age of Possibility tour to further engage our existing customers and attract prospective customers. We're taking our show on the road to cities across the country. In some destinations, we will broadcast live. In others, we will conduct panel discussions with some of our Q50 brand ambassadors and customers. We are excited about our mission to lead the way in changing how retail and entertainment see women over 50: empowered, and full of possibility.

本月，我們將開始「可能時代」之旅，以進一步吸引現有客戶並吸引潛在客戶。我們正在前往全國各地城市的路上進行演出。在某些目的地，我們會現場直播。在其他情況下，我們將與一些 Q50 品牌大使和客戶進行小組討論。我們的使命是引領改變零售業和娛樂業對 50 歲以上女性的看法：賦予女性權力，充滿可能性，我們對此感到非常興奮。

In conclusion, Q1 shows the relevance, star power and new customer momentum in our brands, and it is still early. Now I'll turn the call to Bill to discuss the financial results of each of our businesses in more detail.

總而言之，第一季顯示了我們品牌的相關性、明星效應和新客戶動力，但現在還為時過早。現在我將打電話給比爾，更詳細地討論我們每項業務的財務表現。

Thank you, David, and good morning, everyone. Unless otherwise noted, my comments compare financial performance for the 3 months ended March 31, 2024, to the same period in 2023. Starting with QxH. Revenue declined 4%, primarily due to lower unit volume, which was partially offset by favorable returns and higher shipping and handling revenue.

謝謝大衛，大家早安。除非另有說明，我的評論將截至 2024 年 3 月 31 日的三個月的財務業績與 2023 年同期進行比較。收入下降 4%，主要是由於單位數量減少，但有利的回報以及運輸和裝卸收入的增加部分抵消了這一影響。

From a category perspective, QxH experienced growth in accessories and jewelry, which were offset by declines mainly in home and apparel. Accessories grew 5%, largely due to higher demand for intimates and fashion accessories, partially offset by softness in nonleather handbags and seasonal footwear Jewelry grew 4%, mainly as a result of strength in gold, silver and diamond jewelry, including a successful Today's Special Value of Fire Light lab-grown diamond.

從品類角度來看，QxH 配件和珠寶業務實現成長，但主要被家居和服裝業務的下降所抵消。配件成長5%，主要是由於對內衣和時尚配件的需求增加，部分被非皮革手袋和季節性鞋類的疲軟所抵消。成功的今日特價Fire Light 實驗室製造鑽石的價值。

Home revenue decreased 7%, primarily due to the colder start to the spring causing low demand for gardening and outdoor decor. This was partially offset by strength in indoor decor and culinary. Apparel declined 4% due to soft demand for spring apparel and swimwear. Beauty declined 3%, reflecting lower demand for beauty devices and bath and body, partially offset by growth in hair care.

家居收入下降 7%，主要是由於春季較冷導致對園藝和戶外裝飾的需求較低。這部分被室內裝飾和烹飪的力量所抵消。由於春季服裝和泳裝需求疲軟，服裝下降 4%。美容產品下降 3%，反映出對美容設備、沐浴和身體護理產品的需求下降，但部分被護髮產品的成長所抵消。

Adjusted OIBDA margin increased 330 basis points. Gross margin expanded 360 basis points, mainly driven by strong product margins and favorable fulfillment expense. Product margins increased 200 basis points due to higher margin products driven by improved inventory health with less liquidation compared to last year as well as lower supply chain costs due to Project Athens initiatives.

調整後的 OIBDA 利潤率增加了 330 個基點。毛利率擴大了 360 個基點，主要得益於強勁的產品利潤率和有利的履行費用。產品利潤率增加了 200 個基點，原因是庫存健康狀況改善、清算數量較去年減少，以及雅典項目措施帶來的供應鏈成本降低，推動了產品利潤率提高。

Fulfillment expenses improved 160 basis points due to efficiencies from Project Athens work streams, reduced freight rates and lower detention and demurrage. SG&A was unfavorable by approximately 35 basis points, largely due to sales deleverage and higher marketing expenses, partially offset by lower administrative costs. Marketing expenses increased mainly due to normalization of the annual spend compared to last year. Administrative expenses declined, primarily due to lower costs for outside services related to Project Athens.

由於雅典專案工作流程的效率提高、運費的降低以及滯期費和滯期費的降低，履約費用減少了 160 個基點。 SG&A 不利約 35 個基點，主要是因為銷售去槓桿化和行銷費用上升，但部分被管理成本下降所抵銷。行銷費用增加主要是因為年度支出與去年相比正常化。管理費用下降，主要是由於與雅典計劃相關的外部服務成本下降。

Moving to QVC International. My comments will focus on constant currency results. Revenue declined 1%. QVC U.K. and Japan grew revenue in the high single and low-single digits, respectively. Germany declined mid- to high single digits. From a category perspective, QVC International experienced growth in home and declines largely in jewelry and apparel.

搬到QVC國際。我的評論將集中於不變的貨幣結果。收入下降 1%。 QVC 英國和日本的營收分別達到高個位數和低個位數成長。德國的跌幅為中高個位數。從品類角度來看，QVC International 的家居業務有所成長，而珠寶和服裝業務則大幅下滑。

Adjusted OIBDA increased 10% and adjusted OIBDA margin expanded 90 basis points. Gross margin expanded 70 basis points, mainly due to improved product margins, which reflect lower returns, higher initial margins and higher shipping and handling revenue. SG&A was favorable, primarily due to lower administrative costs.

調整後的 OIBDA 成長 10%，調整後的 OIBDA 利潤率擴大 90 個基點。毛利率擴大了 70 個基點，主要是由於產品利潤率提高，這反映了較低的回報、較高的初始利潤以及較高的運輸和裝卸收入。 SG&A 良好，主要是由於管理成本較低。

Moving to Cornerstone. Revenue declined 11% in the quarter. We experienced soft demand in most home categories and for apparel at Garnet Hill. Despite the revenue decline, Cornerstone grew adjusted OIBDA 50%. This performance was primarily due to favorable supply chain costs from lower ocean and shipping rates, distribution center costs and large package surcharges, partially offset by deleverage of marketing and administrative expenses.

搬到基石。本季營收下降 11%。 Garnet Hill 的大多數家居品類和服裝需求疲軟。儘管營收下降，Cornerstone 調整後的 OIBDA 仍成長了 50%。這項績效主要歸功於較低的海運和運費、配送中心成本和大件包裹附加費帶來的有利供應鏈成本，但部分被行銷和管理費用的去槓桿化所抵消。

Turning to cash flow and the balance sheet. In Q1, capital expenditures were $40 million, and we spent $2 million on TV distribution contract renewals. Our TV distribution payments can fluctuate year-over-year depending on renewal cycles, though we continue to expect the 2-year average to be approximately $100 million.

轉向現金流和資產負債表。第一季度，資本支出為 4,000 萬美元，其中電視發行合約續約支出為 200 萬美元。我們的電視發行付款可能會根據續約週期而逐年波動，但我們仍然預計 2 年平均金額約為 1 億美元。

In Q1, free cash flow was a use of $27 million compared to a use of $70 million last year. The year-over-year improvement was attributable to improve cash flow from operations driven by adjusted OIBDA gains as well as lower capital expenditures and payments for TV distribution rights, partially offset the comping of insurance proceeds from the Rocky Mount fire. We continue to expect higher adjusted OIBDA and lower TV distribution payments to benefit free cash flow in 2024.

第一季度，自由現金流使用量為 2,700 萬美元，而去年為 7,000 萬美元。同比改善歸因於調整後的 OIBDA 收益推動的營運現金流改善以及資本支出和電視發行權付款的減少，部分抵消了落基山火災的保險收益。我們繼續預期調整後的 OIBDA 較高和電視發行費用較低將有利於 2024 年的自由現金流。

Looking at our debt profile. In March, we redeemed all remaining $423 million of principal outstanding of the QVC 4.85% senior secured notes due in 2024. We funded the redemption with drawing under the QVC revolver. As of March 31, 2024, we had $1.3 billion drawn on the QVC revolver, with $1.9 billion in available capacity.

看看我們的債務狀況。今年 3 月，我們贖回了 2024 年到期的 QVC 4.85% 優先擔保票據的全部剩餘 4.23 億美元未償本金。截至 2024 年 3 月 31 日，我們在 QVC 左輪手槍上提取了 13 億美元，可用容量為 19 億美元。

Qurate Retail had total cash of $1.1 billion, of which $311 million was at QVC Inc.; [$464 million] at Liberty Interactive LLC; and $248 million was at Qurate Retail, Inc. Our leverage ratio, as defined by the QVC revolving credit facility, was 2.5x. Please note that covenant OIBDA includes the adjusted OIBDA of QVC, Inc. and Cornerstone and a portion of the projected cost savings. The stated leverage was slightly above the 12/31 leverage ratio due to certain add-backs no longer impacting the calculation, though these add-backs were largely offset by adjusted OIBDA growth.

Qurate Retail 的現金總額為 11 億美元，其中 QVC Inc. 擁有 3.11 億美元； Liberty Interactive LLC [4.64 億美元]； Qurate Retail, Inc. 的資金為 2.48 億美元。請注意，契約 OIBDA 包括 QVC, Inc. 和 Cornerstone 調整後的 OIBDA 以及預計成本節省的一部分。由於某些回加不再影響計算，所述槓桿率略高於 12/31 槓桿率，儘管這些回加在很大程度上被調整後的 OIBDA 成長所抵消。

In the past 2 years, we implemented programs to improve our liquidity and successfully execute our transformation plan. We affirm that our debt level is manageable and our current cushion is sufficient in relation to the 4.5x maximum net leverage covenant threshold stipulated in our credit facility.

在過去的兩年裡，我們實施了改善流動性的計畫並成功執行了我們的轉型計畫。我們確認我們的債務水準是可控的，我們目前的緩衝對於我們信貸安排中規定的 4.5 倍最大淨槓桿契約門檻是足夠的。

In the first quarter, we sustained momentum and generated strong profitability growth and free cash flow improvement. We look forward to building on our progress the remainder of the year. With that, I'll turn the call over to Greg.

第一季度，我們保持了強勁的勢頭，實現了強勁的獲利成長和自由現金流的改善。我們期待在今年剩餘時間繼續取得進展。這樣，我就把電話轉給格雷格。

Thanks, Bill. That was another quarter of sustained and improved financial performance at Qurate, the third consecutive quarter of OIBDA growth and a continuing of the moderation of revenue decline. We are excited about the Age of Possibility launch and believe the iconic ambassadors, including Billy Jean King, Queen Latifah and our very own, can't believe she's really 50, Renee Wilm, will help unlock the opportunities across the multi-platform business.

謝謝，比爾。這是 Qurate 財務業績持續改善的又一個季度，OIBDA 連續第三個季度成長，營收下降持續放緩。我們對Age of Possibility 的推出感到非常興奮，並相信包括Billy Jean King、Queen Latifah 在內的標誌性大使以及我們自己的大使Renee Wilm（難以置信，她真的已經50 歲了）將幫助釋放跨平台業務的機會。

We remain confident in the execution of the turnaround and the trajectory of the business. We expect Qurate to sustain free cash flow improvement throughout the year. We remain focused on the balance sheet and addressing the near-term maturities. As noted, we repaid the outstanding QVC notes due this year. and we continue to assess incremental opportunities to improve the balance sheet. And with that, operator, we'll open the line up for questions. Thank you.

我們對扭虧為盈的執行和業務發展軌跡仍然充滿信心。我們預計 Qurate 全年自由現金流將保持改善。我們仍然關注資產負債表和解決近期到期問題。如前所述，我們償還了今年到期的未償還 QVC 票據。我們將繼續評估改善資產負債表的增量機會。接線員，接下來我們將開始提問。謝謝。

(Operator Instructions). And our first question comes from the line of Carla Casella with JPMorgan.

（操作員說明）。我們的第一個問題來自卡拉·卡塞拉（Carla Casella）與摩根大通的關係。

Thanks for the color, and it's good to see the customer accounts starting to inflect more positively across a couple of different categories. But I'm wondering if you could give us more color on the average spend of the customers. I know during the Investor Day, you talked about the best customers spend $3,800. Today, you said over $1,600 for the existing.

感謝您提供的顏色，很高興看到客戶帳戶開始在幾個不同的類別中產生更積極的影響。但我想知道您是否可以為我們提供有關客戶平均支出的更多資訊。我知道在投資者日期間，您談到最好的客戶花費 3,800 美元。今天，您說現有的價格超過 1,600 美元。

Is there any other details you can give between like the new, existing, reactivated and -- or if you're seeing any change in the transition? Like is it still -- are you still seeing the same number of new customers ultimately become best as what you had done in the past -- as what you've seen in the past?

您是否可以提供任何其他詳細信息，例如新的、現有的、重新激活的以及 - 或者您是否看到過渡中的任何變化？就像你仍然看到同樣數量的新客戶最終變得像你過去所做的那樣嗎？

Thank you, Carla. I appreciate the question. I would say -- so let me just run through some numbers just to give a little more detail and then I'll give some more color. So for QVC best customers, keep in mind, these are customers that purchase over 20 items a year. Yes. They're about 17% of the count and 76% of sales. And we felt good through the quarter about their spend, retention and their frequency, and average spend for the quarter for those best customers was up about 7% on a trailing 12-month basis, about 3% on a quarterly year-over-year basis.

謝謝你，卡拉。我很欣賞這個問題。我會說——所以讓我瀏覽一些數字只是為了提供更多細節，然後我會提供更多顏色。因此，對於 QVC 的最佳客戶，請記住，這些客戶每年購買超過 20 件商品。是的。它們約佔數量的 17% 和銷售額的 76%。我們對整個季度的支出、保留率和頻率感到滿意，這些最佳客戶在本季度的平均支出比過去 12 個月增長了約 7%，比上年同期增長了約 3%基礎。

So our best customers are still performing very well. Going back to the total overall performance of existing customers, and existing customers are a broader subsection. So they're about 50% of the count and 90% of the sales. They purchased, on average, 32 items. They spent $1,000 -- a little over $1,600 in the quarter. That's up 10%. So that feels very good. The other thing that we feel very good about in the existing customers is their retention was up both at QVC and HSN versus last year.

所以我們最好的客戶仍然表現得很好。回到現有客戶的整體績效，現有客戶是一個更廣泛的部分。因此，它們約佔數量的 50% 和銷售額的 90%。他們平均購買 32 件商品。他們本季度花費了 1,000 美元，略高於 1,600 美元。上漲了 10%。所以感覺非常好。我們對現有客戶感到非常滿意的另一件事是，與去年相比，QVC 和 HSN 的現有客戶保留率都有所提高。

So we see good -- very encouraging retention. We see good spending behavior. I think we see more stability in the file than we've had historically. I think if you look at the aggregate customer count numbers, you see it's basically flat since the fourth quarter or so. I think the customer count is very stable now, with some good underlying dynamics. The new customers largely look like our traditional customers. They're coming in through digital channels a little more than they have historically.

所以我們看到了很好的——非常令人鼓舞的保留率。我們看到良好的消費行為。我認為我們看到該文件比歷史上更加穩定。我認為，如果您查看總客戶數量，您會發現自第四季度左右以來基本持平。我認為現在的客戶數量非常穩定，並且具有一些良好的潛在動力。新客戶很大程度上與我們的傳統客戶相似。他們透過數位管道進入的數量比歷史上要多一些。

And it's still early. We're a couple of quarters into really attracting new customers at scale again. And it sometimes takes a little bit of time to fully understand what their purchasing patterns are going to be and how -- what the demographics of those new customers are. So we're watching it very closely. But I would say so far, we are encouraged by what we're seeing from a pretty substantial crop of new customers that are now coming in the business.

而且現在還早。幾個季度以來，我們才再次真正大規模地吸引新客戶。有時需要一點時間才能完全了解他們的購買模式將是什麼以及如何——這些新客戶的人口統計數據是什麼。所以我們正在非常密切地關注它。但我想說的是，到目前為止，我們看到大量新客戶湧入該行業，這讓我們感到鼓舞。

Okay. And if I could ask one follow-up. So there were 100,000 existing QxH customers lost. Would average spend and purchase frequency on those be more similar to the existing? Or can you give us any color on that?

好的。如果我可以問一個後續問題。因此，QxH 失去了 10 萬名現有客戶。這些產品的平均支出和購買頻率是否與現有產品更相似？或者你能給我們任何顏色嗎？

I'm sorry, ask the question again.

不好意思，再問問題。

So in the existing customers, accounts were down by 100,000 in the LTM versus last year. Or was there -- is there -- when you're losing customers, is it -- do they have similar spending frequency and patterns as existing? Or is it a lower amount, assuming they'd kind of drift off?

因此，在現有客戶中，LTM 中的帳戶比去年減少了 100,000 個。或者當你失去客戶時，他們的消費頻率和模式是否與現有的相似？或者假設它們會逐漸消失，那麼這個量是否會較低？

Yes, I think that's right. So we tend to lose lower-quality customers over time. And so they tend to drop out of the file. We have a pretty big effort going on right now. You'll continue to see improvement on the reactivated customers. We're putting a lot of effort into whenever we lose an existing customer, especially if they were a very good customer, contacting them by phone or sending them print materials or giving them coupons to get them back into the brand.

是的，我認為這是對的。因此，隨著時間的推移，我們往往會失去品質較低的客戶。因此他們往往會退出檔案。我們現在正在進行相當大的努力。您將繼續看到重新啟動的客戶的改善。每當我們失去現有客戶時，我們都會投入大量精力，特別是如果他們是非常好的客戶，我們會透過電話聯繫他們、向他們發送印刷材料或給他們優惠券，以讓他們重新加入品牌。

I would say if you, on average, if you trace a customer, one or two things happens there. And we know from calling and talking to them, either they have a big life change, oft in their financial condition and their personal life that causes them to drop off, or they've dropped off slowly and for whatever reason, they become less connected to the brand. Sometimes that's a result of technology.

我想說，平均而言，如果你追蹤一個客戶，那裡會發生一兩件事。我們從打電話和與他們交談中得知，要么他們的生活發生了重大變化，通常是在他們的財務狀況和個人生活方面，導致他們的關係下降，要么他們的關係下降得很慢，無論出於何種原因，他們的聯繫變得越來越少到品牌。有時這是技術的結果。

I would say, final observation, we're seeing about as many people move up the file as move down to file. So our upward migration is now about the same as our downward migration, and that's been a reversal, a positive reversal, and I think that will continue. And then eventually, when that flips is when you'll actually see growth in the aggregate of customer cloud.

我想說的是，最後的觀察結果是，我們看到向上移動的人和向下移動的人一樣多。因此，我們的向上遷移現在與向下遷移大致相同，這是一個逆轉，一個積極的逆轉，我認為這種情況將會持續下去。最終，當這種情況發生逆轉時，您將真正看到客戶雲總量的成長。

Our next question is from the line of William Reuter with Bank of America.

我們的下一個問題來自美國銀行的 William Reuter。

I think that streaming comprised 5% of your minutes viewed last year. You mentioned it was growing. I guess can you share where you expect that streaming may be as a percentage of minutes viewed this year? And then how is the spending of the customers that are viewing minutes on streaming services versus traditional linear TV?

我認為去年串流觀看時間佔您觀看時間的 5%。你提到它正在增長。我想你能分享一下你預計今年串流觀看時間的百分比嗎？那麼，與傳統線性電視相比，觀看串流媒體服務的客戶的花費如何？

Yes. Thank you for the question. I don't think we've, on a regular basis, updated exactly the percentage of overall minutes that streaming is. What I would say is it was about 5% last year. It's more than that now. It's been growing. We're -- streaming as a total percentage of minutes is sort of high single digits and growing fast now. So we're very happy with that progress. I think they'll continue to take share of total minutes as they continue to grow relatively quickly.

是的。感謝你的提問。我認為我們沒有定期準確更新串流媒體總分鐘數的百分比。我想說的是去年大約是5%。現在已經不只這些了。它一直在增長。我們的串流媒體播放時間佔總分鐘數的百分比是個位數的高位，現在正在快速成長。所以我們對這項進展感到非常高興。我認為他們將繼續佔據總上場時間的份額，因為他們繼續相對較快地成長。

The spending dynamics are a little bit difficult to tease out because a lot of times, our customers are multi-platform customers. So somebody who's streaming us may also be watching us on linear, and then they're shopping on -- across a variety of sites. And so we tend to look at them as multi-platform customers, not streaming-only customers, I would say there's nothing about the profile of our streaming customers that causes us to be less excited about where we think -- what we think the growth of streaming is going to mean for the business in the medium to long term.

支出動態有點難以梳理，因為很多時候，我們的客戶都是多平台客戶。因此，觀看我們直播的人也可能會以線性方式觀看我們的節目，然後他們會在各種網站上進行購物。因此，我們傾向於將他們視為多平台客戶，而不是僅限串流媒體的客戶，我想說，我們的串流媒體客戶的概況並沒有導致我們對我們的想法——我們認為的增長——感到不那麼興奮。

Got it. And then just secondarily for me, there have not been kind of consistent updates on Project Athens. I didn't know whether there was any way to think about what's left on this program. I'm not sure if the large majority of it has been completed or what types of dollar opportunities still may remain.

知道了。其次，對我來說，雅典計畫並沒有持續的更新。我不知道是否有辦法思考這個程式還剩下什麼。我不確定其中大部分是否已經完成，或者仍然可能存在哪些類型的美元機會。

Yes. I think when you look through kind of what's been done in Project Athens, we've talked a lot about initiatives impacting kind of product margin fulfillment, kind of working down the P&L there. I think when you look at the balance of the year and what will carry into '25, I think some of those initiatives are still being delivered, whether it's associated with cost of goods sold improvement, fulfillment initiatives and others that will continue to benefit gross margin throughout the year.

是的。我認為，當你回顧雅典計畫所做的事情時，我們已經討論了很多影響產品利潤履行的舉措，以及那裡的損益表。我認為，當你看看今年的餘額以及 25 年的情況時，我認為其中一些舉措仍在實施，無論是與銷售成本改善、履約舉措還是其他將繼續使總收入受益的舉措相關。率。

In addition, David referenced other, in terms of how we're reaching out to the customer and some growth initiatives that I think will start to take shape, and you'll start to see more impactful into '24 heading into '25.

此外，大衛還提到了其他方面，關於我們如何接觸客戶以及我認為將開始形成的一些成長計劃，您將開始看到從 24 年到 25 年更具影響力。

Got it. And then I guess just lastly for me. In terms of freight costs, do you know kind of roughly what percentage of freight are those which you pay for versus your vendors paying for the freight? And then if you're expecting any changes in your freight costs kind of going forward versus the LTM period?

知道了。然後我想對我來說就是最後一次。就運費而言，您是否知道您支付的運費與供應商支付的運費的百分比大致是多少？那麼，您是否預期未來的貨運成本與 LTM 期間相比會發生任何變化？

It's obviously a mix, right, depending on kind of how an individual contract is struck with our various suppliers. We haven't seen material impacts. Our teams have done a really good job of kind of managing through, obviously, you had kind of a lot of volatility around the COVID time periods, I think now even managing with the Red Sea, Port of Baltimore, which we don't use. They've been able to effectively manage that and kind of mitigate any increases in freight, and probably have a little bit of opportunity as more supply has come online, but that's always kind of a case-by-case basis. We don't expect anything hugely material to change though.

這顯然是一種混合，對吧，取決於我們與各個供應商簽訂個人合約的方式。我們還沒有看到實質影響。我們的團隊在管理方面做得非常好，顯然，在新冠疫情期間，有很多波動，我想現在甚至可以管理我們不使用的紅海、巴爾的摩港。他們已經能夠有效地管理這一點，並在一定程度上緩解貨運的增加，並且隨著更多供應的上線，可能有一點機會，但這始終是個案的基礎。不過，我們預計不會有任何重大變化。

Our next question is from the line of Hale Holden with Barclays.

我們的下一個問題來自巴克萊銀行的黑爾·霍頓。

The sales that were lost because of whether they were in swim or outdoor, is your expectation that they may come back in the second quarter? Or are they just lost permanently? And then any thought on consumer health as you go into the second quarter versus what you saw in the first quarter? And then I had a follow-up.

由於游泳或戶外而損失的銷售額，您預計第二季會恢復嗎？或者它們只是永久丟失了？然後，當您進入第二季時，與第一季相比，您對消費者健康有何看法？然後我進行了跟進。

Yes. Two good and fair questions. What we think we're seeing, and I would say this has been true over the last 12 to 18 months, is consumers are buying closer to the season, and they're buying later. I would say the last 3 or 4 seasonal cycles have started later than they have historically. And so I think we're seeing some of that in spring as well. So I would certainly hope that a lot of the uptick from spring and from seasonal wear will continue to climb as we get -- as the weather turns warmer, and we've seen a little bit of that already. So I do think those sales continue to be available for us.

是的。兩個很好且公平的問題。我們認為我們所看到的是，我想說，過去 12 到 18 個月的情況都是如此，消費者在接近季節時購買，而且購買時間較晚。我想說，最近 3 或 4 個季節性週期的開始時間比歷史上晚。所以我認為我們在春天也會看到一些這樣的情況。因此，我當然希望隨著天氣變暖，春季和季節性服裝的銷量將繼續攀升，而且我們已經看到了一些這種情況。所以我確實認為我們仍然可以進行這些銷售。

In terms of consumer sentiment in the macro, I'd say it continues to be relatively stable, but stable at sort of persistently lower level in discretionary retail than what we've seen. I think you will have seen the GDP real consumer spending numbers, unemployment numbers. I think there's nothing about those numbers that tells you the [top's] going to be taken off the market anytime soon. That being said, we're continuing to see real stability in terms of trends, in terms of buying behavior, purchase frequency.

就宏觀消費者信心而言，我認為它仍然相對穩定，但非必需零售的穩定水平持續低於我們所看到的水平。我想你會看到GDP實際消費者支出數據、失業率數據。我認為這些數字並不能告訴你[上衣]很快就會退出市場。話雖如此，我們繼續看到趨勢、購買行為、購買頻率的真正穩定性。

So our customers are sticking with us. They're still very engaged. They're still watching and they're still continuing to shop. We do see a little bit of trading down, so we see a little bit of preference for lower price points. We see a little bit of preference for waiting for sales. That's especially the case by brand. Some of our lower average sell price brands tend to be experiencing that more. And we also see a little bit of leaning away from especially large purchases where consumers look to be a bit more considered. But generally, I would say we're seeing decent stability in the macro and in the outlook.

所以我們的客戶一直支持我們。他們仍然非常投入。他們仍在觀看並繼續購物。我們確實看到了一些交易的下跌，所以我們看到了對較低價格點的一些偏好。我們看到人們對等待銷售有一點偏好。對於品牌來說尤其如此。我們的一些平均售價較低的品牌往往會經歷更多這種情況。我們還發現，人們在購買特別大的商品時有所傾斜，因為消費者希望在這些商品上得到更多的考慮。但總的來說，我想說的是，我們看到宏觀和前景都相當穩定。

And then the second question I had was if you could walk through the decision to put the '24 maturity mostly on the revolver rather than using the cash that you had on the balance sheet, just given the interest cost on the revolver.

然後我遇到的第二個問題是，考慮到左輪手槍的利息成本，您是否可以決定將 24 年到期日主要放在左輪手槍上，而不是使用資產負債表上的現金。

Yes. I mean, really just timing there in the quarter. We'll work through that on the balance of the year on appropriate kind of capital allocation there, but just the timing in the quarter, Hale.

是的。我的意思是，實際上只是在本季進行計時。我們將在今年剩餘時間進行適當的資本配置，但只是在本季的時間安排，黑爾。

Our next question is from the line of Karru Martinson with Jefferies.

我們的下一個問題來自卡魯馬丁森 (Karru Martinson) 和傑弗里斯 (Jefferies) 的電話。

Speaking as someone who was targeted with the new QVC women over 50 ad this morning, I can certainly say that you guys have stepped up your advertising, Nice to see. I think last year, you had kind of the inflection point in the third quarter where the business changed.

作為今天早上 QVC 50 歲以上女性新廣告的目標受眾，我可以肯定地說你們已經加強了廣告力度，很高興看到。我認為去年第三季出現了業務變化的轉折點。

One of the pushbacks I've gotten this morning is like, hey, you guys have shown stability. You have traction, but these are against easy comps. Do you feel that the momentum that you've generated will continue here through the second half of the year?

今天早上我收到的阻力之一是，嘿，你們表現出了穩定性。你有牽引力，但這些都是針對簡單的比賽。您認為您所產生的勢頭會持續到今年下半年嗎？

So first, I'm glad you saw some of our advertisement. I would say don't just look by, feel free to log in, help out the financials. We want you as a customer as well. So we did have -- I think just on the practical basis, we did have some easier comps in the first half of the year. I think that's fair. And obviously, we had better performance in the back half of the year from an OIBDA and free cash flow basis last year.

首先，我很高興您看到我們的一些廣告。我想說的是，不要只是旁觀，請隨時登錄，幫助解決財務問題。我們也希望您成為我們的客戶。所以我們確實有——我認為只是在實際基礎上，我們在今年上半年確實有一些更簡單的比賽。我認為這是公平的。顯然，從去年的 OIBDA 和自由現金流基礎來看，我們下半年的表現更好。

I think we think we have the ability to continue making real progress as we go through the back half. Bill talked about the fact that we continue to have Athens initiatives that we're executing going through the year. We continue to build on those initiatives. We have a management cadence where we're adding additional incremental initiatives to Project Athens as we go.

我認為我們有能力在後半段繼續取得真正的進步。比爾談到了這一事實，即我們在這一年中繼續執行雅典倡議。我們將繼續以這些措施為基礎。我們有一個管理節奏，我們會不斷為雅典計畫添加額外的漸進式舉措。

So we're refueling the funnel of initiatives. And then I think the other thing that will continue to be positive is that the customer count stabilizes, and as we continue to get closer to flat and then growth, that also gives us some additional ability to drive the bottom line results. So we continue to be optimistic about hitting our objectives for the full year.

因此，我們正在為舉措的管道加油。然後我認為另一件將繼續積極的事情是客戶數量穩定，隨著我們繼續接近持平然後增長，這也給了我們一些額外的能力來推動底線結果。因此，我們對實現全年目標仍然持樂觀態度。

And how do you guys feel right now on your inventory, given kind of perhaps some timing shifts on seasonal as people buy closer to need?

鑑於人們在接近需求時購買，可能會出現一些季節性的時間變化，你們現在對你們的庫存感覺如何？

Yes, I think we feel really good about -- a lot of work was done over the last, let's say, 18 months to get our inventory kind of at a rightsized position. I think if you look at ending Q1 '24 versus ending Q1 '23, the inventory level was still down about $200 million, and you feel comfortable that from a days of supply perspective, the teams have got a really good control on kind of managing inventory level even with the kind of -- the impact of people buying a little closer to need.

是的，我認為我們感覺非常好 - 在過去 18 個月裡我們做了很多工作，以使我們的庫存處於合理的位置。我認為，如果你比較一下24 年第一季末與23 年第一季末的情況，庫存水準仍然下降了約2 億美元，並且你會感到放心，從供應天數的角度來看，團隊在管理方面得到了非常好的控制。

Yes. I'd say a couple of things. I agree with Bill. Obsolescence is in a good place, age of inventory is in a good place. I think aggregate level of inventory we're carrying is in a good place. What I feel really good about, as we talked about, percentage of our sales that were going to new or first time on-air items, that continued to grow, and those items are performing better than repeat items.

是的。我想說幾件事。我同意比爾的觀點。過時處於良好位置，庫存年齡處於良好位置。我認為我們的庫存總量處於良好狀態。正如我們所討論的，我感到非常高興的是，我們的銷售中新產品或首次播出產品的百分比持續增長，而且這些產品的表現比重複產品更好。

And so as we've been able to get to a better inventory position and bring in new higher-quality merchandise than we had last year, we think that continues to be a tailwind for the business. So we feel good about our inventory and about what's in it, and about what we're going to be bringing in for the back half of the year.

因此，與去年相比，我們已經能夠獲得更好的庫存狀況並引入更高品質的新商品，我們認為這仍然是業務的推動力。因此，我們對我們的庫存、其中的內容以及我們將在今年下半年引入的內容感到滿意。

Okay. And just lastly, there's been a kind of a shift in the questions I get. People feel comfortable that you have the liquidity, the cash flow to handle the '24 maturities that you retired, the '25 is coming up. I think the big sticking point for the market has been the '26 revolver. How are you guys thinking about that? Do you need a revolver this size? And what's kind of the early feedback from your banks?

好的。最後，我收到的問題發生了某種轉變。人們對你擁有流動性和現金流來處理你退休的「24 年到期日」感到放心，而「25 年」即將到來。我認為市場的一大癥結是'26 左輪手槍。你們覺得怎麼樣？您需要這種尺寸的左輪手槍嗎？你們銀行的早期回饋是什麼樣的？

Yes. This is Ben Oren. I think the first comment would be we don't need a revolver of this size. We've not really gone that high. And so we've got room to reduce that to make banks more comfortable. We're looking at it. It's gotten more and more favorable as this has continued to perform.

是的。這是本·奧倫。我認為第一條評論是我們不需要這種尺寸的左輪手槍。我們還沒有真正達到那麼高。因此，我們有空間減少這一點，以使銀行更加舒適。我們正在研究它。隨著它的持續表現，它變得越來越受歡迎。

And I would say that we're only about a half turn away from being under the 2.5x (inaudible) on the bond debenture. So, so long as the business continues on this trajectory, we're going to continue to monitor it and try to finance in a more favorable environment, whether that comes in the form of a cash flow revolver or an ABL or some alternative. We'll basically roll with what the market conditions are at that time.

我想說的是，我們距離債券的 2.5 倍（聽不清楚）只有大約半個回合。因此，只要業務繼續沿著這條軌跡發展，我們就會繼續監控，並嘗試在更有利的環境中進行融資，無論是採用現金流循環、ABL 或其他替代方案。我們基本上會根據當時的市場狀況進行調整。

Our next question is a follow-up from the line of Carla Casella with JPMorgan.

我們的下一個問題是卡拉·卡塞拉 (Carla Casella) 與摩根大通 (JPMorgan) 的後續行動。

Great. Following on that debt question, can you give us the net deferred tax liability as it relates to the LINTA notes at the end of the quarter?

偉大的。關於債務問題，您能否向我們提供與季度末 LINTA 票據相關的淨遞延稅負債？

Carla, I think we're going to be consistent and only give that once annually at the Investor Day, but no material change.

卡拉，我認為我們將保持一致，每年只在投資者日提供一次，但沒有重大變化。

Okay. You talked to the '26 revolver. Did you say, I may have missed it, that you expect to pay the '25 notes off cash like you did the -- with cash and revolver, like you did the '24 notes?

好的。你和26年的左輪手槍交談過。你是否說過，我可能錯過了，你希望像你一樣用現金和左輪手槍支付 25 美元鈔票，就像你支付 24 美元鈔票一樣？

Currently, that is our expectation that cash on hand and revolver for the 2025s. But if the markets continue to improve, we will continue to look at the capital markets as an option to extend.

目前，這是我們對 2025 年代手頭現金和左輪手槍的預期。但如果市場持續改善，我們將繼續將資本市場視為擴展的選擇。

Okay. Great. Then you talked about seasonality and how customers are buying closer to season. What's your comfort level with the inventory that you have now? Is it a lot of seasonal merchandise that may need to be cleared? Or are you in a good seasonal position with your merchandise inventory?

好的。偉大的。然後您談到了季節性以及客戶如何在接近季節時進行購買。您對現在的庫存感到滿意嗎？是否有許多季節性商品可能需要清倉？或者您的商品庫存是否處於良好的季節性狀態？

Yes. I think we feel good about our inventory. We don't have -- we don't see a lot of excesses that would need to be cleared. We feel good about the level of new. We feel good about the assortment going in the spring. So nothing that we see that's concerning there.

是的。我認為我們對庫存感覺良好。我們沒有——我們沒有看到太多需要清理的過度行為。我們對新的水平感覺良好。我們對春季的品種感覺很好。所以我們沒有看到任何與此相關的內容。

Okay. And the fire-related proceeds, that's all behind you, right? There are no more, I guess, assets or anything on the balance sheet accrued for potential additional proceeds?

好的。與火災相關的收益，這一切都在你身後，對嗎？我猜資產負債表上不再有任何資產或任何東西可以用來獲得潛在的額外收益？

No, that's -- yes, that's all behind us, Carla.

不，那是——是的，這一切都在我們身後了，卡拉。

Okay. Great. And then just one question on Japan. Any more comments you can give us on that market, how the performance is there? And is that something you would ever consider monetizing, that stake in Japan, to address some of your debt maturities?

好的。偉大的。然後只有一個關於日本的問題。您對這個市場還有什麼評論嗎？您是否會考慮將在日本的股份貨幣化，以解決您的部分債務到期問題？

Yes. So on performance, we continue to be optimistic about that business. We continue to think they're taking share in that market. They've largely outrun a slightly even -- if anything, more difficult set of market conditions. And so I'd say that's been -- if you look over the last few years, one of our strongest performing -- most consistent and strongest performing businesses, and it's a business that is growing and continues to grow. And so we feel very good.

是的。因此，就業績而言，我們繼續看好該業務。我們仍然認為他們正在佔據該市場的份額。它們在很大程度上已經超越了稍微平穩的市場條件——如果有的話，那就是更困難的市場條件。所以我想說，如果你回顧過去幾年，這是我們表現最強勁、最穩定、表現最強勁的業務之一，而且它是一項正在成長並持續成長的業務。所以我們感覺很好。

Other thing I'd just note about Japan is that it is our core business model. So we do, essentially, with regional -- with regional adjustments, essentially what we do across the QVC and HSN businesses in all of our other markets. we share talent across. We've had people who have led that business that have gone on to lead other businesses across the portfolio and vice versa. And in fact, I will be in Japan myself in, I think, next month. And so we're very excited about the business. It's material to the overall results.

關於日本，我要指出的另一件事是，它是我們的核心商業模式。因此，我們本質上是透過區域調整，本質上是我們在所有其他市場的 QVC 和 HSN 業務中所做的事情。我們共享人才。我們的一些人曾領導過這項業務，後來又領導了整個投資組合中的其他業務，反之亦然。事實上，我想，下個月我自己也會去日本。因此，我們對這項業務感到非常興奮。這對整體結果很重要。

In terms of whether we'd ever monetize it, I would say, it's a core business. I've been pretty careful to delineate core and noncore businesses. It's a core business, but we're always looking at every opportunity to create shareholder value. We'll continue to do that, like all businesses. But we're very happy with the performance of Japan and what it's meant for the overall portfolio.

至於我們是否會將其貨幣化，我想說，這是一項核心業務。我一直非常謹慎地劃分核心業務和非核心業務。這是一項核心業務，但我們始終在尋找每一個創造股東價值的機會。我們將像所有企業一樣繼續這樣做。但我們對日本的表現及其對整體投資組合的意義感到非常滿意。

Our next question, a follow-up from the line of William Reuter with Bank of America.

我們的下一個問題是 William Reuter 與美國銀行的後續問題。

I just have two that I think are relatively quick. The first, there are clearly a lot of big names associated with the Age of Possibility tour and marketing program. some of which you mentioned maybe kind of staying on in a permanent role.

我只有兩個我認為相對較快的。首先，顯然有許多與「可能性時代」巡迴演出和行銷計劃相關的知名人士。你提到的其中一些可能會繼續擔任永久角色。

Should we think about a meaningful increase in those, whether you want to call those marketing dollars, advertising, whatever those funds would be allocated towards, should that be a meaningful increase?

我們是否應該考慮這些資金的有意義的增加，無論你想稱這些行銷資金，廣告，無論這些資金將分配給什麼，這應該是一個有意義的增加嗎？

No, I wouldn't expect that. In terms of how we've laid out the year, it's fully anticipated with kind of the launch Q50. I don't expect any meaningful change in our level of marketing spend across the portfolio. Or maybe a reallocation of funds in some minor way, but nothing material, no.

不，我沒想到會這樣。就我們今年的安排而言，Q50 的推出是完全令人期待的。我預計我們整個產品組合的行銷支出水準不會發生任何有意義的變化。或者也許以某種較小的方式重新分配資金，但沒有什麼實質性的，不。

Cool. And then the second one, you mentioned that some of the more discretionary product categories that we're seeing weakness across all retailers, you've seen the same thing. Are you going to be changing your mix much this summer that will change kind of the margin profile to some kind of lower margin, less discretionary categories?

涼爽的。然後是第二個問題，您提到我們在所有零售商中都看到了一些較為可自由支配的產品類別的弱點，您也看到了同樣的事情。今年夏天您是否會大幅改變您的產品組合，從而將某種利潤率狀況改變為某種利潤率較低、可自由支配的類別？

No, I don't think so. I think you'll continue to see us shift slightly away from electronics. We're dedicating less airtime there. And I think we don't see the same type of innovation or demand across in electronics.

不，我不這麼認為。我想你會繼續看到我們稍微遠離電子產品。我們在那裡投入的播出時間越來越少。我認為我們在電子領域沒有看到相同類型的創新或需求。

That being said, if we see an innovation cycle happening, and we're starting to hear from some of the manufacturers that they may want to lean into an innovation cycle, if we see an innovation cycle happening, I think we have the ability to get back into that market relatively quickly. We're continuing -- I think we're on a nice string in terms of gross margin expansion.

話雖這麼說，如果我們看到創新週期正在發生，並且我們開始從一些製造商那裡聽到他們可能希望融入創新週期，如果我們看到創新週期正在發生，我認為我們有能力相對較快地回到該市場。我們正在繼續——我認為我們在毛利率擴張方面處於良好狀態。

Some of that's clearance, but some of that's also being mindful of which categories we're pushing and what the margin profile on those categories are. We're going to continue to maintain that discipline. And so -- and we're going to continue to lean into higher-margin categories when it meets the demand we're seeing from our customers.

其中一些是間隙，但其中一些也需要注意我們正在推動的類別以及這些類別的利潤狀況。我們將繼續維持這項紀律。因此，當滿足客戶的需求時，我們將繼續轉向利潤率較高的類別。

So I don't see -- to your question, I don't see us going into lower-margin categories at any sort of scale. We'll be opportunistic. We'll have to continue to read the customer, and we'll follow the customer where she goes. But there's nothing that we see so far that should suggest we can't continue to make good progress on the gross margin profile of the business.

因此，對於你的問題，我不認為我們會進入任何規模的低利潤類別。我們會投機取巧。我們必須繼續閱讀客戶，並跟隨客戶走到哪裡。但到目前為止，我們沒有看到任何跡象表明我們不能繼續在業務毛利率方面取得良好進展。

Our next question is a follow-up from the line of Karru Martinson with Jefferies.

我們的下一個問題是來自卡魯·馬丁森（Karru Martinson）和傑弗里斯（Jefferies）的後續問題。

Just some housekeeping. What was the split before QxH between QVC and Home Shopping Network?

只是一些家事服務。在 QxH 之前，QVC 和 Home Shopping Network 之間有何分歧？

I don't think we talk about that publicly. Obviously, QVC is the bigger of the two, but I don't think we've reported the split, probably.

我認為我們不會公開談論這一點。顯然，QVC 是兩者中較大的一個，但我認為我們可能沒有報告這種分裂。

Okay. And then I understand that existing customers spend about $1,600 on that. But those best customers that you referenced, what do they spend annually?

好的。然後我了解到現有客戶為此花費了大約 1,600 美元。但是你提到的那些最好的客戶，他們每年花多少錢？

Best customers are around $3,900, just under $4,000, and that number has continued to grow over time.

最佳客戶的價格約為 3,900 美元，略低於 4,000 美元，而且這個數字隨著時間的推移而不斷增長。

Great. And with that, thank you to the listening audience. We look forward to speaking with you next quarter, if not earlier. And operator, I think we can close the line.

偉大的。在此，感謝聽眾。我們期待在下個季度（甚至更早）與您交談。接線員，我想我們可以關閉線路了。

Thank you. This will conclude today's conference. You may disconnect your lines at this time. Thank you for your participation.

謝謝。今天的會議到此結束。此時您可以斷開線路。感謝您的參與。