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Digital’s share of total retail sales has grown incrementally over the last year as people became more comfortable with online purchases amid stay-at-home restrictions. Also, with the economy’s reopening and increased consumer spending, both brick-and-mortar and online sales are expected to benefit from pent-up demand. E-commerce growth is projected to be 17.9% in 2021. However, the favorable industry trends were not reflected in QRTEA’s financials in its last reported quarter. For the third quarter, ended September 30, QRTEA reported $3.14 billion of revenue, representing a 7% decline year-over-year. Its adjusted net income declined 48% from the prior-year quarter to $123 million. In addition, its adjusted EPS decreased 46% year-over-year to $0.30, missing the $0.49 consensus estimate by 38.8%. David Rawlinson, President and CEO of QRTEA, stated, “Supply chain constraints and cost inflation are impacting our entire industry, and we have taken action to help mitigate the potential impacts.”
Retail e-commerce sales in the U.S. are expected to grow to 23.6% of all sales by 2025, representing a 13.7% change year-over-year, and its highest growth prediction yet. The industry trends and the company’s strategic plans and initiatives should enable the company to drive growth in the long run.
