Greetings, and welcome to the QVC Group's Third Quarter 2025 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Jessica Donati. Thank you. You may begin.

Thank you, Rob, and good morning. Before we begin the call, I'd like to remind everyone that this call contains 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 QVC Group and QVC with the SEC. These forward-looking statements speak only as of the date of this call, and QVC Group expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in QVC Group's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. 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. Today, speaking on the earnings call, we have QVC Group President and CEO, David Rawlinson; QVC Group CFO and CAO; Bill Wafford; and QVC Group's Executive Chairman, Greg Maffei. Now I'll hand the call over to David Rawlinson.

Thank you. Good morning, everyone. We appreciate you joining us and from your continued interest in QVC Group. During the third quarter, we continued to make progress implementing our WIN growth strategy and other key initiatives to drive the future of live social shopping. We are encouraged by the results we're seeing in our social and streaming platforms against what continues to be a challenging tariff, viewership and macroeconomic backdrop. Though declining linear TV viewership has put pressure on our business, we are executing well on the second phase of our transformation as we continue to manage costs, address our capital structure and invest in social and screening. As I mentioned last quarter, we are continuing to work to find cost reduction opportunities. In Q3, we are fully recognizing the favorable impact of our organizational change from our IT outsourced service model. We have largely completed our previously announced reduction of our global workforce by over 1,000. In last quarter, we completed the operational move of HSN to our headquarters in West Chester, Pennsylvania and have now entered into agreements to sell the St. Petersburg properties to independent third parties. We also remain focused on our long-term sourcing diversification strategy which we have discussed during the prior 2 quarters. We have made meaningful progress this year by reducing the penetration of goods from China by 8% to 10%, and we remain on track to achieve our goal that no country will represent more than 1/3 of our sourced goods in the U.S. by the end of the year. We continue to monitor any changes to tariff rates and evaluate the impact as necessary. In Q3, total revenue declined by 6% in constant currency. QxH revenue declined 7%, QVC International revenue declined 5% in constant currency and Cornerstone revenue declined 8%.…

Thank you, David, and good morning, everyone. Unless otherwise noted, my comments compare financial performance for the 3 months ended September 30, 2025, to the same period in 2024. Starting with QxH, revenue declined by 7% due to a 7% decrease in unit volume and a 13% decrease in shipping and handling revenue, partially offset by favorable returns rate and slightly higher average selling price. From a category perspective, home revenue decreased by 7%, primarily due to reduced demand in culinary and ongoing pressure in our today's special value events, many of which were impacted by tariffs. Apparel revenue decreased by 4%, an improvement from Q2. Beauty revenue declined by 9% in Q3. However, we saw wins from standout brands such as No Makeup Makeup, Philosophy, Naked Re and Beekman 1802. Accessories improved from Q2, with revenue down 6% for the quarter. Handbag and lounge categories drove some positive momentum, along with brands like Skechers and Patricia Nash. Electronics declined 14%, driven by reduced demand in portable power. Adjusted OIBDA decreased 26% and adjusted OIBDA margin contracted 245 basis largely driven by 145 basis points of marketing investment, 130 basis points of total sales deleverage and 85 basis points of pressure from a change in the management incentive compensation plan, partially offset by favorable commissions. Gross margin declined approximately 110 basis points driven by fulfillment pressure, sales deleverage and lower product margins. Product margins decreased by approximately 25 basis points, driven by higher promotions and increased tariffs. Fulfillment expenses were unfavorable 80 basis points due to increased freight rates and sales deleverage. On an aggregate dollar basis, operating expenses decreased 12% and SG&A expenses increased 4%. Operating expenses decreased $15 million, largely driven by lower commissions. SG&A expenses increased $10 million and were unfavorable by approximately 180 basis points due…

Good morning. As both David and Bill noted, it was a challenging quarter as we continue to experience pressure from the linear TV decline, but are making good progress on our WIN strategy, specifically around social. We continue to invest here. We expect to continue to invest here and we will balance cost and return. We are working on our capital structure and balance sheet and proactively evaluating financial and strategic alternatives. And with that, we'd like to note that we appreciate your continued interest in the QVC Group, and thank you for listening to the call. We're done.

Thank you.

This concludes today's conference. You may disconnect your lines at this time, and we thank you for your participation.