S&P revises Qurate Retail view to negative

S&P said it revised the outlook for Qurate Retail Inc. to negative from stable.

“The outlook revision reflects our expectation that Qurate could struggle to reverse the decline in sales amid competitive challenges and industry headwinds. We believe Qurate was distracted with the HSN integration and had execution issues with the reorganization of its merchandise buying team. This contributed to a less attractive assortment of products, which resulted in a modest pullback in orders by repeat customers, who represent about 87% of total purchases. The company also ran into issues with its plans to optimize the fulfillment network, leading to a decline in customer service and increased costs to fix it,” said S&P in a press release.

The agency affirmed all its ratings on the company including the BBB- rating on subsidiary QVC’s secured debt.

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