Catalog division a drag on HSN in 4Q

St. Petersburg, Fla. – HSN Inc. today reported a fourth quarter loss of $2.15 billion compared to a profit of $73.1 million in the year-earlier period.

Sales at the HSN home shopping channel fell 4% to $545.9 million as unit sales fell 10% despite a 5% jump in average price point to $58.20. Internet sales rose 4% and constituted 30% of total sales.

Sales in the Cornerstone catalog/internet segment tumbled 25% to $232.6 million for the quarter, primarily due to diminished consumer demand for home furnishings and apparel. Units shipped fell 21% and average price point slipped 3% to $67.00.

Cornerstone nameplates include Ballard Designs, Garnet Hill, Frontgate, Grandin Road, Improvements, Smith + Noble, The Territory Ahead and TravelSmith.

Consolidated company sales fell 11% to $778.5 million.

To cut costs during the quarter, the company eliminated 250 positions, renegotiated print, paper and freight contract, and mad sweeping reductions in travel expenses, outside fees and other costs.

“As an organization, our key priorities, particularly in this environment, are to retain and build out active customer vase and to continue to gain market share from those less strong and fluid,” said Mindy Grossman, ceo.

For the year, HSN Inc. reported a loss of $2.4 billion. Consolidated sales of $2.8 billion fell 3% from the prior year.

The HSN division increased annual sales by 3% to $1.96 billion while Cornerstone sales fell 15% to $867 million.

Home & Textiles Today Staff | News & Commentary

 Home Textiles Today is the market-leading brand covering the home and textiles markets, offering a comprehensive package of print and online products. Home & Textiles Today provides industry news, product trends and introductions, exclusive industry research, consumer data, store operations solutions, trade show news and much more.

Featured Video

  • Live From New York: Fashion Comes Across the Pond

    Camera Icon More Videos

Subscribe to
Home & Textiles Today eDaily
Receive the news you need to know about the trends in the industry delivered right to your inbox.

CURRENT ISSUE

HTT Current issue for September 2017

See the September 2017 issue of Home & Textiles Today. In this issue, we look at the Attack of the Killer Third Tier: Monster off-pricers are climbing to the top of the food chain, plus New Products: 40 pages of new products debuting at the New York Home Fashions Market; Home Stores: TJX unveils first U.S. HomeSense store; Clicks to Bricks: Boll & Branch moves from digital to physical retailing; and much more... See details!