The COVID-19 epidemic has accelerated the growth of e-commerce. Over the past year, e-retail sales as an overall share of retail sales has seen a significant increase. Qurate Retail’s (QRTEA), shares are trading at a discount and should be able to benefit from industry tailwinds. Is QRTEA worth buying considering that the company’s third quarter earnings forecasts were not met? Let’s discuss.Qurate Retail, Inc. (QRTEA) is an Internet retail-based company engaged in video and online commerce in North America, Europe, and Asia. Based in Englewood Colorado, the concern sells consumer goods through online and televised shopping channels. The stock gained 3.8% in price intraday to close yesterday’s trading session at $10.02, which was 31.5% below its 52-week high of $14.62. QRTEA’s stock has fallen 18.1% in the last six months, and currently trades below its 50-day- and 200-day moving medians.

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. The projected growth of e-commerce in 2021 is 17.9%. However, the favorable industry trends were not reflected in QRTEA’s financials in its last reported quarter. QRTEA saw a decrease of 7% in its revenue for the third quarter ending September 30, reporting $3.14 billion. From the preceding-year quarter, its adjusted net income decreased 48% to $123 million. Additionally, the adjusted EPS fell by 46% over the previous year to $0.30. This was 38.8% less than what analysts had predicted. 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.”

The U.S. retail e-commerce market is expected to increase to 23.6% by 2025. This represents a 13.7% growth year-over-year and the highest ever forecast. The industry trends and the company’s strategic plans and initiatives should enable the company to drive growth in the long run.

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