HSN Net Jumps 20.5 Percent in Q4, 6.2 Percent for Year
February 21, 2013,
ST. PETERSBURG, Fla.-Boosted by healthy gains in digital sales, HSN Inc. ended its fiscal year with a 20.5 percent increase in fourth-quarter net income, to $56.1 million. For the fiscal year, net income rose 6.2 percent to $130.7 million.
Net sales in the quarter, which ended on Dec. 31, rose 6.6 percent to $982.9 million. The top line in the quarter was powered by gains in digital sales of 11 percent for the HSN segment and 14 percent for the Cornerstone segment. The two segments' total sales picked up 7 percent and 6 percent, respectively.
For the year, net sales totaled $3.3 billion, up 6.4 percent. Digital sales again played a major role in the performance of both segments, gaining 10 percent at HSN and 18 percent for Cornerstone. In total, HSN's sales were up 6 percent for the year, while Cornerstone added on 10 percent in sales.
Mindy Grossman, HSN Inc.'s CEO, said the company's quarterly and fiscal-year results "reflect our ability to capitalize on the shift in retail driven by technology, social networks and mobility." Grossman added that the company achieved a 3 percent increase in its customer file, the largest in five years. Retention rates also registered 10-year highs, she said.
Fourth-quarter gross margin for the company as a whole was down 52 basis points in the quarter, to 34.4 percent. Selling, general and administrative expenses rose 4.1 percent in dollars but shed 58 basis points as a percentage of sales, to 23.9 percent.