Qurate Retail Inc (NASDAQ:QRTEA) is trading lower Friday after the company announced it experienced lower-than-anticipated demand in the fourth quarter, which has negatively impacted expected sales and adjusted OIBDA —operating income before depreciation and amortization.
As a result, Qurate Retail issued preliminary results for the fourth quarter. On a year-over-year basis, the company now expects revenue to be down 8% to 9% and adjusted OIBDA to decline between 17% and 20%.
Additionally, as previously disclosed, a "tragic fire" occurred at one of Qurate Retail's fulfillment centers in December. The company said the aforementioned growth rates have not been adjusted for the impact of direct costs associated with the fire.
"We are not pleased with these results and are actively taking steps to improve our long-term performance across business units," said David Rawlinson, president and CEO of Qurate Retail.
"We will share more details on our fourth-quarter performance when we report earnings."
Qurate Retail is set to announce its fourth-quarter financial results before the market opens on Feb. 25.
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QRTEA Price Action: Qurate Retail has traded as high as $14.62 over a 52-week period. It's making new 52-week lows during Friday's session.
The stock was down 19.4% at $6.21 at time of publication.
Photo: courtesy of Qurate Retail.
