QVC Group Inc (QVCGA) 2024 Q3 法說會逐字稿

Welcome to the Qurate Retail, Inc. 2024 Q3 earnings call. (Operator Instructions)

歡迎參加 Qurate Retail, Inc. 2024 年第三季財報電話會議。（操作員說明）

As a reminder, this conference will be recorded November 7th. I would now like to turn the call over to Shane Kleinstein, SVP, Investor Relations. Thank you. Please go ahead.

提醒一下，本次會議將於 11 月 7 日錄製。我現在想將電話轉給投資者關係高級副總裁 Shane Kleinstein。謝謝。請繼續。

Thank you, and 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.

謝謝你，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。由於許多風險和不確定性，包括我們公司以及 QVC 向 SEC 提交的最新 10-K 和 10-Q 表格中提到的風險和不確定性，實際事件或結果可能存在重大差異。

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.

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。

Please note that we have published slides to accompany the earnings release. 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 and 2, can be found in the earnings press release issued today or our earnings presentation, which are available on our website.

請注意，我們已經發布了伴隨收益發布的幻燈片。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 和附表2，可以在今天發布的收益新聞稿或我們的收益演示文稿中找到，這些信息可在我們的網站上找到。

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

今天，Qurate Retail 總裁兼執行長 David Rawlinson 將在電話會議上發言。 Qurate 零售集團財務長 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, Shane, and good morning to everyone. Thank you for joining us today and for your interest in Qurate Retail. As anticipated, Q3 was the most difficult quarter of 2024. The challenged macroeconomic climate and events such as the Olympics and political conventions affected consumer behavior and viewership of our programming. Furthermore, this quarter was a challenging comparison to last year's very strong adjusted OIBDA growth.

謝謝你，肖恩，祝大家早安。感謝您今天加入我們並感謝您對 Qurate Retail 的興趣。如預期，第三季是 2024 年最困難的季度。充滿挑戰的宏觀經濟氣候以及奧運和政治大會等事件影響了消費者行為和我們節目的收視率。此外，與去年非常強勁的調整後 OIBDA 成長相比，本季充滿挑戰。

Looking on a two-year stack, adjusted OIBDA was up 19%. While we prepared for these known headwinds, our revenue in the quarter was lower than expected and resulted in meaningful deleverage throughout the P&L. At our video commerce businesses, revenue declined primarily from lower unit volume in the US, impacted by the aforementioned notable events and their associated impact on viewership.

從兩年的堆疊來看，調整後的 OIBDA 成長了 19%。雖然我們為這些已知的不利因素做好了準備，但我們本季的收入低於預期，並導致整個損益表進行了有意義的去槓桿化。在我們的視訊商務業務中，收入下降主要是由於美國單位銷售下降，受到上述重大事件及其對收視率的相關影響的影響。

In addition, several significant unanticipated headlines further depressed viewership in the quarter, such as the assassination attempts on President Trump, President Biden stepping down from the election and Hurricane Helene, which forced HSN to shift to live from -- sorry, from live to tape programming for over two days. These events competed significantly for airtime and therefore, impacted our business model to a far greater extent than other retailers.

此外，幾個重大的意料之外的頭條新聞進一步壓低了本季度的收視率，例如川普總統遭暗殺、拜登總統退出選舉以及颶風海倫迫使HSN 從現場直播（抱歉，從直播轉為磁帶）編程了兩天多。這些活動對播出時間的競爭非常激烈，因此對我們的業務模式的影響遠大於其他零售商。

QxH total TV minutes viewed decreased 4% in Q3. According to industry data, the number of hours watched for TV shopping decreased 8% in Q3, while major networks grew 16% and news and information programming increased more than 20%. Based on sales trajectories immediately preceding large headline driving events, we estimate that competing events collectively reduced our revenue approximately 1 to 2 percentage points in Q3.

第三季 QxH 電視總觀看時間減少了 4%。行業數據顯示，第三季電視購物的觀看時長下降了8%，而主要電視網的觀看時長增長了16%，新聞和資訊節目的觀看時長增長了20%以上。根據大型重大駕駛事件之前的銷售軌跡，我們估計，競爭事件使我們在第三季的收入總共減少了約 1 到 2 個百分點。

In this environment, we held consolidated gross margin flat and maintained disciplined cost management. Product margin gains were offset by unfavorable fulfillment from higher wage and freight rates due to inflation and market pressures. We reduced operating expenses $11 million and SG&A $10 million year-over-year. Our adjusted OIBDA margin contracted 80 basis points due to approximately 125 basis points of sales deleverage.

在這種環境下，我們保持綜合毛利率持平，並維持嚴格的成本管理。產品利潤率的成長被通貨膨脹和市場壓力導致的工資和運費上漲所帶來的不利履行所抵消。我們年減營運費用 1,100 萬美元，SG&A 減少 1,000 萬美元。由於銷售去槓桿化約 125 個基點，我們調整後的 OIBDA 利潤率縮小了 80 個基點。

Cornerstone Brands continues to navigate a challenged housing market and had a disproportionate impact on our Q3 results. While it was 11% of total company revenue and just 2% of adjusted OIBDA, it had an outsized impact on the total company revenue and adjusted OIBDA decline. Cornerstone is taking action and implementing a Project Athens-like transformation plan that I'll describe shortly.

Cornerstone Brands 繼續應對充滿挑戰的房地產市場，並對我們第三季的業績產生了不成比例的影響。雖然它占公司總收入的 11%，僅佔調整後 OIBDA 的 2%，但它對公司總收入和調整後 OIBDA 下降產生了巨大影響。Cornerstone 正在採取行動並實施類似雅典計畫的轉型計劃，我很快就會對此進行描述。

Looking at QxH, total customer count declined 5% in the quarter, driven by a 6% decrease in existing customers and a 1% decrease in reactivated customers. New customers increased 2%, the fifth consecutive quarter of growth.

從 QxH 來看，本季總客戶數量下降了 5%，原因是現有客戶減少了 6%，重新啟動的客戶減少了 1%。新客戶成長 2%，連續第五個季度成長。

As you can see on slide 8 in our presentation, on a trailing 12-month basis, the count was down less than 1% sequentially in the 12 months ending September 30th compared to June. Our existing customers continue to purchase at healthy levels, spending on average $1,659 and purchasing 32 items in the 12 months ending September 30th, up 6% and 4% year-on-year, respectively. At QVC, our best customers, who buy 20 or more items annually, also continue to purchase at very attractive levels.

正如您在我們簡報的幻燈片8 中看到的那樣，在過去12 個月的基礎上，截至9 月30 日的12 個月中，與6 月份相比，計數環比下降了不到1% 。我們的現有客戶繼續保持健康的購買水平，在截至 9 月 30 日的 12 個月內平均花費 1,659 美元，購買了 32 件商品，同比分別增長 6% 和 4%。在 QVC，我們的最佳客戶每年購買 20 件或更多商品，並且繼續以極具吸引力的水平進行購買。

In the 12 months ending September 30th, they bought 76 items and spent $3,960 on average, up 1% and 4% year-on-year, respectively.

截至 9 月 30 日的 12 個月內，他們購買了 76 件商品，平均花費 3,960 美元，年比分別增加 1% 和 4%。

Now let me update you on the Age of Possibility campaign and our influential Q50 brand ambassadors. We continue to take the age of Possibility on the road and hosted events in New York City and Charleston in the quarter. In New York, we broadcasted two live shows during Fashion Week. We brought together most of our large fashion vendors, including Dennis Basso, who presented his spring and summer 2025 Couture Runway show. Approximately 200 customers and several of our Q50 brand ambassadors, including Martha Stewart, Melissa Rivers, and Stacy London attended the shows.

現在讓我向您介紹「Age of Possibility」活動和我們頗具影響力的 Q50 品牌大使的最新情況。我們繼續在路上迎接「可能性」時代，並在本季在紐約市和查爾斯頓舉辦了活動。在紐約，我們在時裝週期間直播了兩場現場秀。我們聚集了大多數大型時裝供應商，其中包括丹尼斯·巴索 (Dennis Basso)，他展示了 2025 年春夏時裝秀。大約 200 名客戶和我們的幾位 Q50 品牌大使，包括瑪莎·斯圖爾特 (Martha Stewart)、梅麗莎·里弗斯 (Melissa Rivers) 和史黛西·倫敦 (Stacy London) 出席了展會。

We are pleased that the event generated 2 billion media impressions. In Charleston, we teamed up with celebrity chef Carla Hall and welcomed thousands of visitors to a food event that was the finale of our summer Foodie Travel series. We offered samples of food and drink from QVC vendors, including Callie's Biscuits, Mascot Pecans and Boylan Bottling as well as feature products from Le Creuset, MacKenzie-Childs and Sweet Heritage by Carla Hall.

我們很高興該活動產生了 20 億次媒體曝光。在查爾斯頓，我們與名廚 Carla Hall 合作，歡迎數千名遊客參加美食活動，這是我們夏季美食旅行系列的壓軸。我們提供了來自 QVC 供應商的食品和飲料樣品，包括 Callie's Biscuits、Mascot Pecans 和 Boylan Botdling，以及來自 Le Creuset、MacKenzie-Childs 和 Sweet Heritage by Carla Hall 的特色產品。

These initiatives are important to our long-term brand building strategy and particularly impactful to our existing customer file.

這些措施對於我們的長期品牌建立策略非常重要，尤其對我們現有的客戶檔案產生影響。

Age of Possibility brands include existing brands as well as new offerings. We continue to experience demand with particular strength from Kim Gravel, Jennie Garth, Alina Villasante, Stacy London and Laurie Geller -- Laura Geller.

Age of Possibility 品牌包括現有品牌和新產品。我們繼續感受到 Kim Gravel、Jennie Garth、Alina Villasante、Stacy London 和 Laurie Geller（勞拉·蓋勒）的強烈需求。

From a merchandise perspective, consumers remain selective in their discretionary spending. They responded more favorably to seasonal events for home decor and food. We experienced strength in Bethlehem Lights and Valerie Parr Hill Decor during Christmas and July as well as for Rastelli's Prime Rib and Corky's Stuffed Turkey and our fall home event.

從商品的角度來看，消費者在可自由支配的支出上仍有選擇性。他們對家居裝飾和食品的季節性活動反應更積極。聖誕節和七月期間，我們在 Bethlehem Lights 和 Valerie Parr Hill Decor 以及 Rastelli's Prime Rib 和 Corky's Stuffed Turkey 以及我們的秋季主場活動中體驗到了實力。

Despite their cautious behavior, customers still continue to respond to merchandise at the right value. Examples included leather jackets by Juliana, Denim & Company and Dennis Basso, e-bikes, EcoFlow generators, intimates from Evelyn & Bobbie, and Breezies, footwear from Skechers and Easy Sprint, beauty devices from Dyson and luggage from Hulken and Samantha Brown.

儘管行為謹慎，顧客仍繼續以正確的價格對商品做出反應。例如，Juliana、Denim & Company 和 Dennis Basso 的皮夾克、電動自行車、EcoFlow 發電機、Evelyn & Bobbie 和 Breezies 的內衣、Skechers 和 Easy Sprint 的鞋類、Dyson 的美容設備以及 Hulken 和 Samantha Brown 的行李箱。

While our apparel business experienced lower sales, it outperformed the overall business driven by demand for brands from our Q50 brand ambassadors and celebrities at HSN, including Christie Brinkley, Jaclyn Smith and Jhoan Sebastian Grey.

雖然我們的服裝業務銷售額有所下降，但其表現優於整體業務，這是由我們的 Q50 品牌大使和 HSN 名人（包括 Christie Brinkley、Jaclyn Smith 和 Jhoan Sebastian Grey）對品牌的需求所推動的。

Our customers responded less favorably to fitness, kitchen accessories and floor care and home, computers and tablets and electronics, and bath and body and beauty.

我們的客戶對健身、廚房配件和地板護理、家居、電腦、平板電腦和電子產品、沐浴、身體和美容的反應較差。

Changing notes. We are very excited to name Rosalia Bucaro as the new Chief Merchandise Officer at HSN. Rosalia joined in late September and brings more than two decades of retail experience from Rue Gilt Groupe and Bloomingdale's. She holds a wealth of expertise in fashion, merchandising, business strategy, brand development and creating transformative customer experiences. Welcome, Rosalia.

改變筆記。我們非常高興任命 Rosalia Bucaro 為 HSN 新任首席商品長。Rosalia 於 9 月底加入，帶來了 Rue Gilt Groupe 和 Bloomingdale's 二十多年的零售經驗。她在時尚、行銷、商業策略、品牌開發和創造變革性客戶體驗方面擁有豐富的專業知識。歡迎，羅莎莉亞。

Finally, on QxH, let me mention two exciting programming highlights. We were thrilled to welcome comedian and actor Kevin Hart and renowned British rock band Coldplay to QVC. In late September, Kevin made his QVC debut with his heart healthy VitaHustle Protein shakes during a special Saturday morning cue. Kevin has more than 179 million social followers and VitaHustle has gained significant traction in the wellness space.

最後，在 QxH 上，讓我提一下兩個令人興奮的程式設計亮點。我們很高興歡迎喜劇演員兼演員凱文哈特 (Kevin Hart) 和英國著名搖滾樂團酷玩樂團 (Coldplay) 來到 QVC。9 月下旬，Kevin 在周六早上的特別節目中首次亮相 QVC，飲用了有益心臟健康的 VitaHustle Protein 奶昔。Kevin 擁有超過 1.79 億社交粉絲，VitaHustle 在健康領域獲得了巨大的關注。

In early October, QVC hosted the return of our Q-sessions live by welcoming Coldplay. QVC was the exclusive retail partner of the Notebook edition record and CD of Coldplay's highly anticipated new album, Moon Music. We are thrilled that the LP edition sold out in 13 minutes. Coldplay performed a few of their new songs and engaged with our customers, taking three live testimonial calls. If you missed the show, you can watch it on QVC+.

十月初，QVC 主持了 Q 會議的回歸直播，歡迎 Coldplay。QVC 是酷玩樂團備受期待的新專輯《Moon Music》筆記型唱片和 CD 的獨家零售合作夥伴。我們很高興黑膠唱片版本在 13 分鐘內就售罄。酷玩樂團表演了一些新歌，並與我們的客戶進行了互動，並接到了三個現場推薦​​電話。如果您錯過了該節目，可以在 QVC+ 上觀看。

Our streaming business is seeing strong momentum. While still relatively small compared to our traditional channels, revenue, total minutes viewed, and monthly average users all grew in the double digits in Q3.

我們的串流媒體業務勢頭強勁。雖然與我們的傳統頻道相比仍然相對較小，但第三季的營收、總觀看分鐘數和月平均用戶數均以兩位數成長。

Turning to QVC International. Results were mixed in the quarter. Revenue declined 1%, the fifth consecutive quarter of broadly stable revenue performance. QVC Germany and Japan both reported flat revenue with growth in home and electronics, offset by softness in the fashion categories. QVC U.K.

轉向 QVC 國際。本季的業績好壞參半。營收下降 1%，連續第五個季度營收表現基本穩定。QVC 德國和日本的營收均持平，家居和電子產品成長，但被時尚品類的疲軟所抵消。英國 QVC

revenue declined 1% with lower sales for apparel, partially offset by growth in home. QVC International's adjusted OIBDA decline was driven primarily by higher fulfillment costs and to a lesser extent, lower product margins. The fulfillment pressure was due to higher freight and wage rates from inflation. QVC International maintained disciplined expense management and reduced operating and SG&A expenses.

由於服裝銷售額下降，收入下降 1%，但部分被家居銷售額成長所抵銷。QVC International 調整後的 OIBDA 下降主要是由於履約成本上升以及產品利潤率下降所致。履行壓力是由於通貨膨脹導致運費和工資上漲。QVC International 維持嚴格的費用管理並減少營運和銷售、一般管理費用。

At Cornerstone, revenue declined 12% due to low demand from continued housing pressure. Despite the revenue decline, we grew gross margins from lower supply chain costs, though this was more than offset by costs for outside services related to the transformation plan and deleveraging of SG&A costs, resulting in a $5 million adjusted OIBDA decline.

由於持續的住房壓力導致需求低迷，Cornerstone 的收入下降了 12%。儘管收入下降，但我們的毛利率仍因供應鏈成本下降而增長，不過這被與轉型計劃和 SG&A 成本去槓桿化相關的外部服務成本所抵消，導致調整後的 OIBDA 下降 500 萬美元。

Cornerstone is implementing a transformation plan to improve its profitability given the continued challenges in the housing sector. We are focused on driving increased revenue and reducing costs in key areas.

鑑於房地產行業持續面臨的挑戰，基石正在實施一項轉型計劃，以提高獲利能力。我們專注於在關鍵領域增加收入並降低成本。

Example of our actions include leveraging our combined purchasing power through direct sourcing for cost improvement opportunities, increasing use of advanced analytics in pricing and promotion, improving the core online experience, optimizing our direct-to-consumer marketing spend and enhancing both efficiency and the sales experience in our retail stores. We are actively implementing changes to the business and expect to drive meaningful benefit through 2027.

我們採取的行動包括透過直接採​​購來利用我們的綜合購買力來尋求成本改進機會、在定價和促銷中更多地使用高級分析、改善核心在線體驗、優化我們直接面向消費者的營銷支出以及提高效率和銷售我們零售店的經驗。我們正在積極實施業務變革，預計到 2027 年將帶來有意義的效益。

In conclusion, we are nearing the end of our multiyear Project Athens initiative and are very pleased to report the team has materially improved our business over this time period. The initial gains were most -- were mainly cost, margin and cash flow focused.

總而言之，我們的多年雅典項目計劃即將結束，並且非常高興地報告團隊在此期間顯著改善了我們的業務。最初的收益是最多的——主要集中在成本、利潤和現金流上。

We expanded gross margins in five of the last six quarters and adjusted OIBDA margin in four of the last five quarters. We grew free cash flow, excluding insurance proceeds, nearly $400 million from December 2022 to September 2024. Our stated objective was to deliver stable revenue and a double-digit CAGR for adjusted OIBDA and free cash flow through 2024 from a base of 2022. Our revenue has underperformed this goal, which drove increased deleverage throughout the P&L.

我們在過去六個季度中的五個季度擴大了毛利率，並在過去五個季度中的四個季度調整了 OIBDA 利潤率。從 2022 年 12 月到 2024 年 9 月，我們的自由現金流（不包括保險收益）增加了近 4 億美元。我們既定目標是在 2022 年的基礎上，到 2024 年實現穩定的收入以及調整後的 OIBDA 和自由現金流的兩位數複合年增長率。我們的收入沒有達到這一目標，這推動了整個損益表去槓桿化的增加。

While we expect our adjusted OIBDA CAGR will be just under our Athens goal, our organic free cash flow generation is trending on track with forecast. The cost efficiencies we implemented in the business have resulted in a more profitable, leaner and more nimble organization that will continue to benefit from ongoing Athens work streams.

雖然我們預計調整後的 OIBDA CAGR 將略低於我們的雅典目標，但我們的有機自由現金流產生趨勢與預測相符。我們在業務中實施的成本效率帶來了一個更有利可圖、更精簡和更靈活的組織，該組織將繼續受益於正在進行的雅典工作流程。

Taking a step back, we also know our demographic is increasingly impacted by cord cutting. Therefore, we recognize the need to reach additional aggregated audiences on new platforms and to grow the business. I look forward to providing more details on this strategy at Investor Day next week.

退一步說，我們也知道我們的人口越來越受到掐線的影響。因此，我們認識到需要在新平台上吸引更多的聚合受眾並發展業務。我期待在下週的投資者日提供有關該策略的更多細節。

Now I'll turn the call to Bill to discuss the financial results of each of our businesses in more detail.

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 three months ended September 30, 2024, to the same period in 2023.

謝謝大衛，大家早安。除非另有說明，我的評論將截至 2024 年 9 月 30 日的三個月的財務業績與 2023 年同期進行比較。

Starting with QxH. Revenue decreased 6% due to lower unit volume and shipping and handling revenue, partially offset by favorable returns. From a category perspective, home revenue decreased 3%, driven by lower demand for culinary and fitness products. Apparel saw gains in certain Age of Possibility brands, but declined 3%, driven by soft demand for fall fashion. Beauty revenue decreased 4%, driven by lower demand for bath, body and hair care products.

從 QxH 開始。由於單位數量以及運輸和裝卸收入下降，收入下降了 6%，但部分被良好的回報所抵消。從類別角度來看，由於烹飪和健身產品需求下降，家庭收入下降了 3%。某些「可能時代」品牌的服裝業務有所增長，但由於秋季時尚需求疲軟，下降了 3%。由於沐浴、身體和護髮產品的需求下降，美容收入下降了 4%。

Accessories experienced growth in luggage sales, but declined 9% due to lower demand for footwear and handbags. Electronics decreased 16%, primarily due to weaker computer sales. Adjusted OIBDA margin dropped by 40 basis points. Gross margin declined 10 basis points with higher product margins being mitigated by fulfillment pressure. Product margins improved approximately 10 basis points due to higher initial margin from Project Athens initiatives, partially offset by lower shipping and handling revenue.

箱包配件的銷量有所增長，但由於鞋類和手袋的需求下降，銷量下降了 9%。電子產品下降 16%，主要是因為電腦銷售疲軟。調整後的 OIBDA 利潤率下降了 40 個基點。毛利率下降 10 個基點，較高的產品利潤率因履行壓力而緩解。由於雅典專案計畫的初始利潤增加，產品利潤率提高了約 10 個基點，但部分被運輸和裝卸收入的下降所抵消。

Fulfillment expenses increased approximately 35 basis points due to higher wage and freight rates and deleverage. Operating expenses decreased 6% due to lower commissions. Despite a 4% reduction in SG&A expenses, we were still unfavorable by 35 basis points due to the deleveraging of administrative costs and increased marketing expense. Administrative expenses declined due to lower personnel expenses and outside services, while marketing increased due to brand marketing to support QVC's Age of Possibility campaign.

由於工資和運費上漲以及去槓桿化，履約費用增加了約 35 個基點。由於佣金減少，營運費用下降了 6%。儘管SG&A費用減少了4%，但由於行政成本的去槓桿化和行銷費用的增加，我們的表現仍下降了35個基點。由於人員費用和外部服務減少，行政費用有所下降，而行銷費用則因支持 QVC 的「Age of Possibility」活動的品牌行銷而增加。

Moving to QVC International. My comments will focus on constant currency results. Revenue decreased 1%, reflecting a 3% decrease in average selling price, partially offset by a 1% increase in units shipped and favorable returns. QVC Germany and Japan were flat and QVC U.K. declined 1%.

搬到QVC國際。我的評論將集中於不變的貨幣結果。營收下降 1%，反映出平均售價下降 3%，但部分被出貨量增加 1% 和良好的回報所抵銷。QVC 德國和日本持平，QVC 英國下跌 1%。

From a category perspective, QVC International experienced growth in Home and Accessories with a decline in Apparel and Beauty. Adjusted OIBDA decreased 9% and adjusted OIBDA margin contracted 95 basis points. Gross margin decreased 120 basis points due to higher fulfillment costs and lower product margins.

從品類角度來看，QVC International 的家居和配件業務成長，而服裝和美容業務下降。調整後的 OIBDA 下降 9%，調整後的 OIBDA 利潤率收縮 95 個基點。由於履行成本上升和產品利潤率下降，毛利率下降了 120 個基點。

Fulfillment costs increased due to higher freight rates and fulfillment center costs. Product margins decreased, reflecting lower initial margin due to product mix and higher ocean freight rates. Operating expenses declined approximately 30 basis points.

由於運費和配送中心成本上漲，配送成本增加。產品利潤率下降，反映出產品組合和海運費上漲導致初始利潤率下降。營運費用下降約 30 個基點。

Moving to Cornerstone. Revenue declined 12% in the quarter as we experienced soft demand across our home brands. Gross margin expanded 290 basis points due to lower year-over-year supply chain costs, while these were offset by the sales deleveraging of operating and SG&A expenses as well as higher outside services related to the transformation plan David mentioned.

搬到基石。由於我們的本土品牌需求疲軟，本季營收下降了 12%。由於供應鏈成本同比下降，毛利率擴大了 290 個基點，而這些成本被營運和銷售、一般管理費用的銷售去槓桿化以及與 David 提到的轉型計劃相關的外部服務增加所抵消。

Turning to cash flow and the balance sheet. In the first nine months of 2024, free cash flow was a source of $102 million, compared to a source of $79 million last year, excluding insurance proceeds. The increase in cash flow net of insurance proceeds was primarily due to lower payments for TV distribution rights, partially offset by lower cash from operations. In the first nine months of 2024, we spent $23 million on TV renewals -- on renewals of our TV distribution contracts and $137 million on capital expenditures.

轉向現金流和資產負債表。2024 年前 9 個月，自由現金流為 1.02 億美元，去年為 7,900 萬美元（不含保險收益）。扣除保險收益後的現金流量增加主要是由於電視發行權付款減少，但部分被營運現金減少所抵銷。2024 年頭 9 個月，我們在電視續約上花費了 2,300 萬美元，即電視發行合約的續約和資本支出 1.37 億美元。

Looking at the Qurate Retail, Inc. debt profile. As of September 30, 2024, net debt was $4.7 billion. In September, we completed an offer in which 89% of our 2027 and 2028 notes were tendered for newly issued 2029 notes, and $352 million of cash, of which $75 million was funded by QVC Inc. and the remainder by Liberty -- Liberty Interactive LLC.

查看 Qurate Retail, Inc. 的債務狀況。截至2024年9月30日，淨債務為47億美元。9 月，我們完成了一項要約，其中89% 的2027 年和2028 年票據被投標為新發行的2029 年票據，並提供3.52 億美元現金，其中7500 萬美元由QVC Inc. 提供資金，其餘部分由Liberty -- Liberty Interactive 提供有限責任公司。

The exchange improves QVC's credit profile by reducing its debt balance and extending its maturity profile. As of September 30th, the QVC revolver had $1.3 billion drawn with $1.8 billion in available capacity. In terms of cash balances, Qurate Retail had total cash of $873 million, of which $297 million was at QVC Inc., $201 million was at Liberty Interactive LLC, and $275 million was at Qurate Retail Inc. Our leverage ratio as of Q3 as defined by the QVC revolving credit facility was 3.1x, compared to our maximum covenant threshold of 4.5 times.

該交易所透過減少債務餘額和延長期限來改善 QVC 的信用狀況。截至 9 月 30 日，QVC 左輪手槍已提取 13 億美元，可用容量為 18 億美元。就現金餘額而言，Qurate Retail 的現金總額為8.73 億美元，其中QVC Inc. 為2.97 億美元，Liberty Interactive LLC 為2.01 億美元，Qurate Retail Inc. 為2.75 億美元。率定義為QVC 循環信貸額度的倍數為 3.1 倍，而我們的最大契約門檻為 4.5 倍。

Please note that covenant OIBDA includes the adjusted OIBDA of QVC, Inc. and Cornerstone and a portion of projected cost savings. We affirm that our debt level is manageable and our current cushion is sufficient in relation to the 4.5 times maximum net leverage covenant threshold stipulated in our credit facility.

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。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最大淨槓桿契約門檻的 4.5 倍來說是足夠的。

Finally, as we mentioned last quarter, we received a notice from Nasdaq on June 10 that QRTEA's closing bid price needs to be $1 or more for 10 consecutive business trading days within 180 calendar days to regain compliance for continued listing on Nasdaq.

最後，正如我們上季度提到的，我們在6 月10 日收到納斯達克的通知，要求QRTEA 的收盤價需要在180 個日曆日內連續10 個交易日達到或超過1 美元，才能重新獲得在納斯達克繼續上市的合規性。

If QRTEA does not regain compliance during this time period, we will apply to move the stock from trading on the Nasdaq Global Select Market tier to the Nasdaq Capital Market tier, which will provide us an additional 180-day -- calendar day period to regain compliance. As a part of this process, we will be required to effect a reverse stock split, if necessary, to remain on Nasdaq.

如果QRTEA 在此期間未恢復合規，我們將申請將股票從納斯達克全球精選市場級別的交易轉移到納斯達克資本市場級別的交易，這將為我們提供額外的180 天（日曆日）時間來恢復合規性。作為此過程的一部分，如有必要，我們將需要進行反向股票分割，以留在納斯達克。

Now, I'll turn the call over to Greg.

現在，我將把電話轉給格雷格。

Thanks, Bill. As you heard, it was a difficult quarter. There was significant impact on viewership as headline-grabbing events impacted sales more than originally forecasted. While business has a healthier cost structure, top line softness has resulted in deleveraging across the P&L.

謝謝，比爾。正如您所聽到的，這是一個艱難的季度。由於引人注目的事件對銷售的影響超出了最初的預測，因此對收視率產生了重大影響。雖然企業的成本結構更健康，但營收疲軟導致損益表去槓桿化。

We continue to proactively manage the balance sheet. We tendered for 89% of QVC's 2027 and 2028 notes, $959 million of principal amount. This was partially funded by $605 million of new 2029 notes, so an extension, and the remainder was $75 million of QVC and $277 million of Liberty Interactive cash. This extends the runway of Qurate's debt maturity profile.

我們繼續積極主動管理資產負債表。我們投標了 QVC 2027 年和 2028 年票據的 89%，本金為 9.59 億美元。其中部分資金來自 6.05 億美元的 2029 年新票據（因此延期），其餘部分是 7,500 萬美元的 QVC 和 2.77 億美元的 Liberty Interactive 現金。這延長了 Qurate 債務到期期限的範圍。

And in addition, interest expense was reduced by approximately $9 million from a combination of Fed cuts and exchange transactions. All of these support our goal of extending the 2026 revolver.

此外，由於聯準會降息和外匯交易，利息支出減少了約 900 萬美元。所有這些都支持我們延長2026年左輪手槍的目標。

We do recognize the landscape is changing with cord cutting, increasingly impacting our customers. We are pursuing new -- a new growth strategy to more deliberately reach aggregated audiences on primarily social and streaming platforms. David will speak in more detail about this at Liberty's Investor Day next week, November 14.

我們確實認識到，隨著剪線，情況正在發生變化，對我們的客戶的影響越來越大。我們正在尋求新的成長策略，以更刻意地吸引主要社交和串流平台上的聚合受眾。David 將在下週（11 月 14 日）的 Liberty 投資者日上更詳細地談論這一點。

We look forward to seeing you there. You can tune in virtually or join us in person at our new location, the Jazz at Lincoln Center. If you plan to attend in person, please make sure to register by Monday, November 11, as there will not be on-site registration. The link to register can be found on our website. John Malone and I will host our annual Q&A session.

我們期待在那裡見到您。您可以虛擬收看節目，也可以親自到我們的新地點林肯中心爵士樂中心參加我們的節目。如果您計劃親自參加，請務必在 11 月 11 日星期一之前註冊，因為不會進行現場註冊。註冊連結可以在我們的網站上找到。約翰·馬龍和我將主持我們的年度問答會議。

If you'd like to submit questions in advance, you can e-mail investorday@libertymedia.com. And with that, we'll open the floor, operator, for Q&A.

如果您想提前提交問題，可以發送電子郵件至investorday@libertymedia.com。接下來，接線員，我們將開始問答環節。

(Operator Instructions) William Reuter, Bank of America.

（操作員指示）William Reuter，美國銀行。

I have -- my first question is on the category performance. There was clearly a pretty large divergence. When you look at -- I guess, do you expect that the categories that have remained soft -- that have been soft will remain so? And I guess, are you taking actions in the near term to change your programming to put more of the categories of strength on air?

我的第一個問題是關於類別表現。顯然存在相當大的分歧。當你看到——我想，你是否期望那些一直處於疲軟狀態的類別將保持如此？我想，您是否會在短期內採取行動改變您的節目安排，以播出更多的力量類別？

Yes, I appreciate the question. Thank you for that. I would say the category performance this time was really disproportionately impacted by the macro factors and events, both known and unanticipated. And it's just sort of had a broad category impact. As I think I mentioned in my prepared remarks, viewership across our 5 channels in the US were down 4%. And so that just drove a level of softness throughout categories.

是的，我很欣賞這個問題。謝謝你。我想說，這次的品類表現確實受到宏觀因素和事件的影響，無論是已知的還是意料之外的。它只是產生了廣泛的類別影響。正如我在準備好的發言中提到的，我們在美國 5 個頻道的收視率下降了 4%。因此，這只是推動了整個類別的疲軟程度。

And like I said, we think it had a 1% to 2% impact on total revenue and then corresponding P&L. When you look at the category specifics, home revenue decreased 3%. That was mostly driven by culinary and fitness, no reason to think that in a more normalized external environment that we won't see some better performance and bounce-back there.

正如我所說，我們認為它對總收入以及相應的損益產生了 1% 到 2% 的影響。從具體類別來看，房屋收入下降了 3%。這主要是由烹飪和健身推動的，沒有理由認為在更正常化的外部環境中我們不會看到更好的表現和反彈。

I do think we continue to see -- we leaned into apparel with Age of Possibility -- some of the Age of Possibility brands. There was a little bit of softness outside of those Age of Possibility brands and fall fashion. So we're continuing to watch and see how that developed.

我確實認為我們會繼續看到——我們傾向於與Age of Possibility一起進入服裝——一些Age of Possibility品牌。除了那些充滿機會的品牌和秋季時裝之外，還有一點柔軟。因此，我們將繼續觀察事態的發展。

But overall, I think -- and then electronics, I think we continue to wait on a real boom cycle and innovation cycle in electronics. I don't think we've seen that fully materialize yet. I think if we see -- as we see more innovation in the electronics, and I think particularly the tablet, video game, and television market, that market will be mostly dependent on the innovation cycle.

但總的來說，我認為 - 然後是電子產品，我認為我們繼續等待電子產品的真正繁榮週期和創新週期。我認為我們還沒有看到這完全實現。我認為，如果我們看到電子產品領域有更多的創新，尤其是平板電腦、電玩和電視市場，那麼該市場將主要依賴創新週期。

So we're watching across categories very closely. We're changing our airtime assets as we see strength in particular categories. But I think this quarter was mostly a macro quarter in terms of understanding what was happening in the category and was less about the specific category dynamics.

因此，我們正在非常密切地關注各個類別。當我們看到特定類別的優勢時，我們正在改變我們的播出時間資產。但我認為本季主要是一個宏觀季度，旨在了解該類別中發生的情況，而不是具體類別的動態。

Got it. And then last quarter, I think you mentioned that less than half of your product was sourced from China. In general, the way that your relationships work with your vendors, are they responsible for the tariffs if there were tariffs enacted? Or are the agreements such that you would be paying those? And I guess, any commentary on how you were impacted by the tariffs the first time they came around in 2018?

知道了。上個季度，我想你提到你們的產品不到一半來自中國。一般來說，您與供應商的關係方式，如果頒布了關稅，他們是否要為關稅負責？或協議中是否規定您將支付這些費用？我想，您對 2018 年關稅首次出現時受到的影響有什麼評論嗎？

Yes. I think if you were -- to the point, the importer of record in most cases are vendors or suppliers, right? We direct source, it's still a significant portion of it. We negotiate those deals on a landed cost basis, right? So depending on how the tariffs flow through, we'll be on a bespoke basis how we manage each of our vendors.

是的。我想如果你是 - 就這一點而言，在大多數情況下記錄的進口商是供應商或供應商，對嗎？我們直接來源，它仍然佔其中的很大一部分。我們在到岸成本的基礎上談判這些交易，對嗎？因此，根據關稅的流動方式，我們將根據客製化的方式管理每個供應商。

If you look at how that happened, how we manage that back -- in the last round several years ago, I mean that's when you start to think about it, that's when we started diversifying country of origin sourcing, right? And that's when we moved a lot of sourcing out of China to other lower-cost country sources, whether it be lower cost of goods or improved tariff.

如果你看看這是如何發生的，我們如何管理它- 在幾年前的最後一輪中，我的意思是當你開始考慮它時，那就是我們開始多元化原產地採購的時候，對嗎？就在那時，我們將大量採購從中國轉移到其他成本較低的國家來源，無論是降低商品成本還是提高關稅。

We'll continue to evaluate, continue to make strides there, and we'll take them as they come this time around. I don't think we'll be unique in how this is impacting relative to other retailers and expect us to handle it in a similar fashion.

我們將繼續評估，繼續在這方面取得進展，這次我們將接受它們。我認為相對於其他零售商，我們在這方面的影響不會是獨一無二的，並期望我們以類似的方式處理它。

Got it. And then just lastly for me, it would seem like despite the huge number of events that caused distraction for consumers in the third quarter, clearly, I think October was a month which had a lot of the same types of distractions. Was there any material change in the trends in October? Or did we see a lot of the same things we saw in the third quarter?

知道了。最後對我來說，儘管第三季有大量事件導致消費者分心，但顯然，我認為十月是一個有很多相同類型分心的月份。10月份的趨勢有什麼重大變化嗎？或者我們看到了很多與第三季相同的事情？

Yes. Let me take that in two parts. First, maybe I'll try to describe with a little more particularity some of the trends and events. So on July 13th was the day of the first Trump shooting. On the 13th, we saw average hourly reach declined 10% at QVC.

是的。讓我把它分成兩個部分。首先，也許我會嘗試更具體地描述一些趨勢和事件。所以7月13日是川普第一次槍擊事件的日子。13 日，我們發現 QVC 的平均每小時到達率下降了 10%。

Sales per hour fell 50% in the evening and prime time compared with the average of the morning and afternoon periods that day. So you just saw an almost immediate precipitous drop-off in sales. Presidential debate on September 10th. Average reach in the first hour was down 36% at QVC. Sales per hour fell 20% in prime time, compared with the evening hours leading up to the debate.

與當天上午和下午時段的平均銷售額相比，晚上和黃金時段每小時的銷售額下降了 50%。所以你會看到銷售額幾乎立即急劇下降。9月10日舉行總統辯論。QVC 第一小時的平均到達率下降了 36%。與辯論前的晚間時段相比，黃金時段每小時的銷售額下降了 20%。

And even when you look at something like the Olympics opening ceremony, which turned out to be very widely watched, you saw sales per hour fell 25% in the afternoon hours versus the morning hours on QVC that day.

即使當您觀看像奧運開幕式這樣受到廣泛關注的活動時，您也會發現 QVC 當天下午的每小時銷售額與上午相比下降了 25%。

So you did see a very direct read across between the events and viewership, which then corresponded to sales. I would say the quarter was driven more by the ups and downs of the media cycle than it was by an overall, I think, retail trend underlining.

所以你確實看到了事件和收視率之間的非常直接的解讀，然後與銷售額相對應。我想說，這個季度更多是受到媒體週期起伏的推動，而不是整體零售趨勢的推動。

Because of that, there tended to be a few more events in the first half of the quarter than the second half. So we did see a little bit of improvement as we went through Q3. But I think the biggest driver really was the news cycle.

因此，本季前半段的事件往往比後半段多一些。因此，在第三季度，我們確實看到了一些改進。但我認為最大的推動因素確實是新聞週期。

Carla Casella, JPMorgan.

卡拉‧卡塞拉，摩根大通。

I'm just -- on the international customer, your customer declines in the quarter, and you did call out a few markets. But can you just talk about any -- are there any particular markets there where you're actually seeing the numbers down or a change in trend? And then if you could also give us some color on Asia, specifically Japan?

我只是 - 關於國際客戶，您的客戶在本季度有所下降，而且您確實提到了一些市場。但你能談談任何——是否有任何特定的市場，你實際上看到數字下降或趨勢發生變化？那麼能否為我們介紹一下亞洲，特別是日本的情況？

Yes, that's great. Thank you for the question. For the quarter, Germany and Japan revenues were both essentially flat, down, I think, 0.1% and 0.3%, respectively. So I think relative stability there. Both countries saw sales growth in home and electronics and both countries saw softness in fashion.

是的，那太好了。謝謝你的提問。本季度，德國和日本的營收基本上持平，我認為分別下降了 0.1% 和 0.3%。所以我認為那裡相對穩定。兩國的家居和電子產品銷售均出現成長，而時尚產業則疲軟。

QVC UK declined 1%, mostly on lower sales for apparel and home. But I think what you tend to see are idiosyncratic events across the international businesses, but you largely see an international business that's very stable. We have had more difficulties with shipping in the European businesses, because of some of the things that are going on in their shipping lanes. So that did have a little bit of an effect, especially in Germany and the UK.

QVC UK 下跌 1%，主要是因為服裝和家居銷售額下降。但我認為你往往會看到國際業務中發生的特殊事件，但你在很大程度上會看到非常穩定的國際業務。由於歐洲航線上發生的一些事情，我們在歐洲業務的運輸方面遇到了更多困難。所以這確實產生了一點影響，特別是在德國和英國。

But I think going into the -- if you look at -- just to hit that really quick, about 75% of our supply at our European operations go through the Canal. And so we did have a little bit more exposure and had to do things like changing some of the -- some of our programming, et cetera, there.

但我認為，如果你仔細觀察的話，為了快速實現這一目標，我們歐洲業務中約 75% 的供應都是透過運河進行的。因此，我們確實有更多的曝光機會，並且必須做一些事情，例如改變一些事情——我們的一些程式設計等等。

But I think the story at our international business is largely a story of stability. Some of the customer counts were down slightly, but I wouldn't read that forward as too much of a trend. We think we feel good in the medium term about being able to get to growing customer files across our international business, despite there being some customer count softness, I think, particularly in Japan and Germany this year.

但我認為我們國際業務的故事很大程度上是一個穩定的故事。一些客戶數量略有下降，但我不認為這是太大的趨勢。我們認為，從中期來看，我們對能夠在國際業務中獲得不斷增長的客戶檔案感覺良好，儘管我認為客戶數量有所疲軟，特別是今年在日本和德國。

Okay. Great. And then you kind of alluded to it, the shipping. The gross margin impact from shipping, was that all the Red Sea? And should that be more normalized as we go forward? Or was it just a third quarter hit?

好的。偉大的。然後你提到了運輸。航運對毛利率的影響，都是紅海嗎？隨著我們的前進，這種情況是否應該更加正常化？或者這只是第三季的熱門作品？

Yes, like largely from the Red Sea and largely impacted our international business. Obviously, the majority of their goods flow through the Red Sea, I think near 75%. On the US business, much more limited impact on that, and we don't expect that to continue at all. And we've already seen those back off in the time period.

是的，主要來自紅海，很大程度上影響了我們的國際業務。顯然，他們的大部分貨物都流經紅海，我認為接近 75%。對於美國業務來說，受到的影響要有限得多，我們預計這種情況不會持續下去。我們已經看到這些在這段時間內有所回落。

Okay. Great. And then on your -- you mentioned the best customers, I think I got the number right, $3,960 average spend. Correct me if I'm wrong there. But then also, has your best customer numbers changed dramatically? And how does that compare to average spend for your existing customers.

好的。偉大的。然後，關於您提到的最佳客戶，我想我的數字是正確的，平均支出為 3,960 美元。如果我錯了請糾正我。但同時，您的最佳客戶數量是否發生了巨大變化？與現有客戶的平均支出相比如何？

Yes, that's great. So QVC best customers, which keep in mind is customers that purchase over 20 items a year, they're about 17% of the count and 76% of sales. And we feel good about both existing and best customers in terms of their behavior.

是的，那太好了。因此，QVC 的最佳客戶是每年購買超過 20 件商品的客戶，他們約佔總數的 17% 和銷售額的 76%。我們對現有客戶和最佳客戶的行為都感到滿意。

Average spend increased 4% year over year in the last 12 months. And you're right, $3,960 was about the average spend, so you nailed it. And we also had average items increased about 1% to 76 items. And so in terms of behavior, we felt very good. And then we saw similar increases in both spend and items in terms of existing customers.

過去 12 個月平均支出較去年同期成長 4%。您是對的，3,960 美元大約是平均支出，所以您做到了。我們的平均商品數量也增加了約 1%，達到 76 件。因此，就行為而言，我們感覺非常好。然後我們看到現有客戶的支出和商品都有類似的成長。

So what we're seeing is our customers who are with us remain engaged, remain excited about the programming, remain willing to spend and continue driving units up. And then I think on an account basis, we continue to see reasonable stability sequentially. I think eventually, and I've said this, we have to get back to a growing customer file overall. That hasn't been a primary target for us in Project Athens. It's been much more bottom line focused.

因此，我們看到的是，我們的客戶仍然參與其中，對節目保持興奮，仍然願意花錢並繼續推動銷售成長。然後我認為在帳戶基礎上，我們繼續看到合理的穩定性。我認為最終，我已經說過了，我們必須恢復總體上不斷增長的客戶檔案。這並不是我們雅典計畫的主要目標。它更加註重底線。

I think as we'll articulate a little bit next week at the Liberty Investor Day, count and revenue growth will come into focus as we go into a next period focused much more squarely on growth now that we have a better profitability profile than we did a couple of years ago. And I think that should be when we'll try to drive some increases in total customer count.

我認為，正如我們將在下週的自由投資者日上闡明的那樣，隨著我們進入下一個時期，我們將更加關注增長，因此計數和收入增長將成為焦點，因為我們的盈利能力比以前更好了幾年前。我認為我們應該在那時努力推動客戶總數的增加。

Jenna Giannelli, Morgan Stanley.

珍娜‧賈內利，摩根士丹利。

So with the election now behind us and some of these macro attention grabbing events, is your expectation that viewership will sort of normalize into 4Q? I know Bill asked it a bit, but said, I guess, another way, have you seen signs of that yet? And then anything specifically you're doing on holiday that should perhaps drive the sales picture a little bit better sequentially?

那麼，隨著選舉的結束以及一些引人注目的宏觀事件，您是否預計第四季度收視率會正常化？我知道比爾問過一點，但他說，我想，換句話說，你有看過這個跡象嗎？然後，您在假期期間所做的具體事情可能會推動銷售情況繼續好一點？

Yes. So I would say we haven't seen it yet. I think we're still washing through the presidential results and the cycle. But we do expect to see a much more normalized picture in the fourth quarter. And I think we're looking forward to a little bit of stability in the viewing habits of our customers.

是的。所以我想說我們還沒看到它。我認為我們仍在梳理總統選舉結果和週期。但我們確實預期第四季會看到更正常化的情況。我認為我們期待客戶的觀看習慣能有一點穩定。

We don't see any reason at this point to believe that we will not get to a much more normal viewing cadence in the fourth quarter.

目前我們沒有任何理由相信我們不會在第四季達到更正常的觀看節奏。

I will also say we get -- the fourth quarter is our largest by volume. And so some of the deleverage challenges that we had in the third quarter, just from volume deleverage running over fixed costs, that should improve in the fourth quarter. So we feel relatively good about that.

我還要說的是，第四季是我們銷售量最大的季度。因此，我們在第三季遇到的一些去槓桿化挑戰，僅是來自超過固定成本的數量去槓桿化挑戰，應該會在第四季得到改善。所以我們對此感覺相對良好。

We have a very strong programming calendar for the fourth quarter, everything from being the exclusive broadcaster of the national Pickleball Championships to another year of hosting the Radio City Rockettes, who will be back in studio, I believe. We'll have a QVC goes to London Christmas event. You'll see lots of celebrities in our programming. And so we feel good about the fourth quarter.

我們第四季的節目安排非常豐富，從成為全國匹克球錦標賽的獨家轉播商到又一年主辦無線電城火箭女郎，我相信她們將回到演播室。我們將舉辦一場 QVC 前往倫敦的聖誕節活動。您會在我們的節目中看到很多名人。因此我們對第四季感覺良好。

I think a lot of retailers are calling out the fact that this is -- because of the way Thanksgiving falls, there is a different period pre-Thanksgiving and then a different period between Thanksgiving and Christmas in terms of calendar days. And so we are also scrubbing our programming and our cadence to adjust for that. But yes, we -- going into the fourth quarter, I think we start out feeling like it should be a much more normal quarter than Q3 was.

我認為很多零售商都在強調這樣一個事實——由於感恩節的到來方式，感恩節前有一個不同的時期，然後感恩節和聖誕節之間的日曆天數也有不同的時期。因此，我們也在清理我們的節目安排和節奏，以適應這一點。但是，是的，進入第四季度，我認為我們開始感覺這應該是一個比第三季度正常得多的季度。

Okay. That's helpful. And then also, I just wanted to ask on Cornerstone. Given the underperformance, and I know you outlined kind of a plan for cost cutting and some improvements there, but have there been any other re-thoughts on strategic options or considerations for that business outside of just driving earnings improvement?

好的。這很有幫助。另外，我只是想在基石上問一下。鑑於業績不佳，我知道您概述了一項削減成本的計劃和一些改進，但除了推動盈利改善之外，是否對該業務的戰略選擇或考慮因素進行了任何其他重新思考？

Yes. I think -- so we like the Cornerstone businesses. We think those businesses, a lot of them have very defensible, competitively advantaged positions. What we've seen is those businesses in an upmarket tend to overperform the market, but are also vulnerable in down markets like we're currently in. I think when the housing market returns in force -- we're still seeing housing starts that are depressed.

是的。我認為——所以我們喜歡基石業務。我們認為這些企業，其中許多企業都擁有非常穩固的、具有競爭優勢的地位。我們看到的是，高端市場的企業往往表現優於市場，但在我們目前所處的低階市場中也很脆弱。我認為，當房地產市場強勢回歸時，我們仍然會看到新屋開工率低迷。

We're still seeing mortgage rates that are very high -- very elevated. We're still seeing housing moves that are at a very depressed level. So we're clearly in a sector-wide depressed state, and they sell into that sector. And so we think, in a moment where that sector bounces back that we'll be well positioned to really take advantage of it. And so a lot of the work now is getting to a consolidated, more profitable platform to take advantage of that market when it returns.

我們仍然看到抵押貸款利率非常高。我們仍然看到住房變動處於非常低迷的水平。因此，我們顯然處於整個行業的蕭條狀態，他們向該行業拋售。因此，我們認為，在該行業反彈的時刻，我們將處於有利地位，能夠真正利用它。因此，現在的許多工作都是建立一個整合的、利潤更高的平台，以便在市場回歸時利用該平台。

I would say -- I've stated in the past that Cornerstone is not our core video commerce business, but we do think it's a very attractive business. We do think it's a business that will be worth substantially more in a couple of years than it would be valued at today, and we continue to think there's a lot of value to unlock in that business.

我想說——我過去曾說過，基石不是我們的核心視訊商務業務，但我們確實認為這是一項非常有吸引力的業務。我們確實認為，幾年後該業務的價值將大大高於目前的價值，並且我們仍然認為該業務有很多價值可以釋放。

And then I would just also say that any time we have an opportunity to create value for shareholders, whether it's organic or inorganic, we would always take a serious look at that. But today, we own the business, and we are excited about the transformation opportunity of that business.

然後我還要說，任何時候我們有機會為股東創造價值，無論是有機的還是無機的，我們都會認真考慮這一點。但今天，我們擁有了該業務，我們對該業務的轉型機會感到興奮。

One of the things that gives us so much confidence about the playbook we're about to run is we saw it materially increase the profitability of the QVC and US businesses as a result of Project Athens. And so we're bringing to that business a lot of tools we've refined over the last couple of years.

讓我們對即將實施的方案充滿信心的一件事是，我們看到雅典計畫大大提高了 QVC 和美國企業的獲利能力。因此，我們為該業務帶來了過去幾年改進的許多工具。

Okay. Perfect. That makes sense. And then I just have one final one, if I can, and I'm looking forward to more details and color next week. But you talked about how you're ending your three-year plan. As we think about the next phase in the next two to three years, should we anticipate any further opportunity for cost or margin improvement, efficiency work, et cetera?

好的。完美的。這是有道理的。如果可以的話，我只有最後一張，我期待下週看到更多細節和顏色。但你談到瞭如何結束你的三年計畫。當我們考慮未來兩到三年的下一階段時，我們是否應該預期成本或利潤改善、效率工作等方面的進一步機會？

Or should we think about pillars of the next phase as mostly being focused on perhaps new revenue or customer channel streams, et cetera? And again, I appreciate we'll hear more next week, but just any additional early color on next steps and next phase.

或者我們應該將下一階段的支柱視為主要關注新收入或客戶通路流等？再次，我很高興我們下週會聽到更多信息，但只是關於下一步和下一階段的任何額外的早期色彩。

Yeah, that's great. Great. I appreciate the questions. Well, we will -- Athens was very deliberately very bottom line cost and margin focused. I sort of talked about stable revenue when we announced Athens. I very explicitly did not talk about revenue growth because we weren't targeting most of our efforts at revenue growth.

是的，那太好了。偉大的。我很欣賞這些問題。好吧，我們會——雅典非常刻意地非常注重底線成本和利潤。當我們宣布雅典的消息時，我談到了穩定的收入。我非常明確地沒有談論收入成長，因為我們的大部分努力並不是針對收入成長。

I think what you will see as we go into a more growth-oriented phase is a better balance across. And so we are going to be looking to drive revenue growth, but we're also going to be doing it while continuing to have an emphasis on efficiency and margin, and then cost and productivity.

我認為，當我們進入一個更以成長為導向的階段時，您會看到更好的平衡。因此，我們將尋求推動收入成長，但我們也將在繼續強調效率和利潤，然後是成本和生產力的同時做到這一點。

And I would also say that we are still midstream in a lot of our Athens cost and margin and growth efforts that will continue to have substantial benefit beyond 2024. So I think you'll continue to see a lot of the things that have driven the increases in profitability in effect as we go into the out years, but you will see a more balanced approach to top and bottom line going forward.

我還想說，我們在雅典的許多成本、利潤和成長努力仍處於中游，這些努力將在 2024 年後繼續帶來實質效益。因此，我認為，隨著我們進入過去的幾年，您將繼續看到許多實際上推動獲利能力成長的因素，但您將看到未來對頂線和底線採取更加平衡的方法。

Karru Martinson, Jefferies.

卡魯馬丁森，傑弗里斯。

With the resolution of the presidential election a little bit faster this year than the last time around, are you seeing that comparison return back to normal faster? Or are we still kind of in the watching the news tape here?

今年總統選舉的解決速度比上次要快一些，您是否認為這種比較更快恢復正常？或者我們還在看新聞錄影帶嗎？

I think it's too early to tell. We're -- it's still very fresh. I think it's still washing through. I will say, I think the best case scenario for us was a decisive victory either way that allowed us to get out of the news cycle. And I think that's what we saw. And so I would say, from a business standpoint, I'm encouraged that it was able to effectively be decided on night one.

我認為現在說還為時過早。我們——它仍然非常新鮮。我認為它仍在沖洗。我想說，我認為對我們來說最好的情況是取得決定性的勝利，讓我們擺脫新聞週期。我認為這就是我們所看到的。所以我想說，從商業角度來看，我很高興能夠在第一晚有效地做出決定。

Okay. And when you look at your seasonal sales or holiday sales, has the consumer kind of still been responding to that seasonal offering? Or is that also being pressured by the pullback in discretionary?

好的。當您查看季節性銷售或假期銷售時，消費者是否仍在對季節性產品做出反應？或者這也受到了可自由支配權回調的壓力？

Yes, it's a great question. I'm not sure I'd say I have a super clean read just because there were the macro events that made it a little bit confusing to read across. I think there are a couple of things I can say. I think it's still a reasonably promotional environment, and we do see customers that are value conscious and looking for promotions. That's clear. I think it is a holiday-themed holiday, if you will.

是的，這是一個很好的問題。我不確定我是否會說我有一個超級乾淨的閱讀，只是因為有一些巨集事件使得閱讀起來有點混亂。我想我可以說幾件事。我認為這仍然是一個合理的促銷環境，我們確實看到具有價值意識並尋求促銷的客戶。很清楚。如果你願意的話，我認為這是一個以節日為主題的節日。

So we are seeing spikes in seasonal. We are seeing spikes in holiday-related decor and holiday-related push events. And so that does seem to be triggering. There's a little bit of a sense of holiday escape and a little bit of a sense of retail therapy that seems to be in the mind of the consumer right now. We are still seeing a more cautious consumer.

所以我們看到季節性的高峰。我們看到與節日相關的裝飾和與節日相關的推送活動激增。這似乎確實觸發了。現在消費者的心中似乎有一點度假的感覺和一點購物療法的感覺。我們仍然看到消費者更加謹慎。

I would say, we are still seeing a consumer that's buying closer to need rather than further out. But I think the consumer is reserved. I think they're cautious. I think they're value conscious, but they're there.

我想說的是，我們仍然看到消費者購買更接近需求的產品，而不是更遠的需求。但我認為消費者是有所保留的。我認為他們很謹慎。我認為他們具有價值意識，但他們確實存在。

All right. And then when we look at the capital structure, obviously, a big move with the extension to the '29s. We should expect the '25s to get paid off with the revolver and cash, I'd assume. And how does that kind of feed into the revolver refinancing outlook here?

好的。然後，當我們觀察資本結構時，顯然，隨著時間的延長，這是一個重大舉措。我想，我們應該期望 25 歲的人會得到左輪手槍和現金的回報。這對左輪手槍再融資前景有何影響？

This is Ben Oren. Essentially, the exchange offer gave us the runway to put an extension of the revolver in either late 2028 or early 2029. We still need to negotiate with our banks, but we feel like we have the right tools to be able to offer them the improved terms and reduction in total borrowings to be able to facilitate that.

這是本·奧倫。從本質上講，交換要約為我們提供了在 2028 年末或 2029 年初延長左輪手槍的跑道。我們仍然需要與銀行進行談判，但我們認為我們擁有合適的工具，能夠向他們提供改進的條款並減少總借款，從而實現這一目標。

Hale Holden, Barclays.

黑爾·霍頓，巴克萊銀行。

Just a follow up on that -- the last question. I think understandably, for the last 2-plus years, you guys have carried very high cash balances. But with the maturity extension and pending revolver extension, I was wondering what you thought the right cash balances to carry would be? Or if we would see some of that cash deployed to the '25 paydown as opposed to putting it on the revolver?

只是對最後一個問題的跟進。我認為可以理解的是，在過去的兩年多里，你們擁有非常高的現金餘額。但隨著到期日的延長和待定的左輪手槍延期，我想知道您認為正確的現金餘額是多少？或者，我們會看到部分現金被用於 25 年的還款，而不是放在左輪手槍上？

So I think the best way to answer that is to talk about where the cash is. We've been relatively strategic about each tier. So the cash that's sitting at the Qurate Retail, Inc. level is committed to making payments on corporate overhead and on the dividend associated with the preferred. The cash at the Liberty Interactive level was used in mass scale to help us in the extension of the runway during this exchange offer.

所以我認為回答這個問題的最好方法是談論現金在哪裡。我們對每一層都採取了相對策略性的態度。因此，Qurate Retail, Inc. 層級的現金將用於支付公司管理費用以及與優先股相關的股息。Liberty Interactive 層面的現金被大規模使用，以幫助我們在此次交換要約期間擴展跑道。

The argument being that the option value that we create by extending our runway is more significant than anything we could create by paying down debt at the Liberty Interactive box with those dollars. And then with respect to the cash that sits at QVC, we have generally been using dollars of free cash flow to repay the revolver whenever available.

爭論的焦點是，我們透過擴展跑道所創造的選擇權價值比我們用這些美元償還自由互動盒子上的債務所創造的任何價值都更重要。然後，就 QVC 的現金而言，我們通常會在可用時使用自由現金流來償還左輪手槍。

We keep reasonable balances, but they're spread across a pretty diverse regional base given that it's a global business. But we are happy with the cash balances in each pocket at this time.

我們保持合理的平衡，但鑑於這是一項全球業務，它們分佈在相當多樣化的區域基礎上。但目前我們對每個口袋裡的現金餘額感到滿意。

All right. I think that -- those are our questions for today. Thank you to our listening audience. Thank you to our presenters, and we look forward to seeing you next -- some of you next week in New York and perhaps some of you virtually. And thank you for your interest in Qurate.

好的。我認為──這些就是我們今天的問題。感謝我們的聽眾。感謝我們的主持人，我們期待下次見到你們——你們中的一些人下週在紐約，也許還有一些人在網路上見到你們。感謝您對 Qurate 的興趣。

Thank you.

謝謝。

Ladies and gentlemen, thank you for your participation. This concludes today's event. You may disconnect your lines and log off the webcast at this time, and enjoy the rest of your day.

女士們、先生們，感謝您的參與。今天的活動到此結束。此時您可以斷開線路並退出網路廣播，享受接下來的一天。