QRTEA - Qurate Retail slides as weak consumer sentiment dent Q3 earnings

• Qurate Retail ( NASDAQ: QRTEA ) shares fell 21% on Friday after the  consumer products firm fell short of Wall Street estimates with its third quarter results .
• The company incurred loss of $2.74B in the quarter, compared to net income of $127M in the third quarter of 2021. Revenue decreased 13% to $2.7B, with e-commerce revenue down 13% to $1.7B. Weakened consumer sentiment and an intensely promotional environment impacted the third quarter performance.
• As a result of recent financial performance of certain subsidiary businesses, macroeconomic conditions and a decline in its stock price, Qurate Retail ( QRTEA ) initiated a process to evaluate those subsidiaries’ current business models and long-term business strategies.
• The company found that an indication of impairment existed for the QxH and Zulily reporting units related to their goodwill and the HSN and Zulily tradenames. The impairment primarily reflects a significant increase in discount rates used, combined with recent business performance that is partially attributed to the challenged economic conditions.

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