HSNi net sales climb 10% as Cornerstone, HSN strengthen

Retail Editor 8, Staff Staff, November 3, 2010

St. Petersburg, Fla. - Sales grew but profits fell at HSNI during its third quarter.
Net income fell 10% to $14.9 million. Sales for the period ended Sept. 30 rose 10% to $708.4 million.
By segment, sales increases in the quarter were strongest at Cornerstone, up 23% to $214.7 million - "the largest year-over-year growth rate of any quarter since 2005," said Mindy Grossman, HSNi ceo. Internet sales represented 56.9% of sales.
"We undertook key strategic initiatives this quarter that were focused on customer engagement by creating content-immersive experiences and leveraging our unique multichannel platform," she explained.
Cornestone's sales growth was attributable, the company said, to "an increase in demand for luxury and outdoor products, the execution of strategic merchandising and marketing initiatives and an investment in catalog circulation in Cornerstone's three largest brands -- Frontgate, Ballard Designs and Garnet Hill."
The return rate increased to 15.9% from 14.2% primarily due to a $2.5 million sales provision recorded for the voluntary product recall.
Sales also increased at HSN but more modestly - by 6% - to $493.7 million, including a 10% sales growth at HSN.com, representing 30.9% of HSN's net sales, up from 29.8% in the prior year. Units shipped and average price point increased 3% and 2%, respectively. Also during the quarter, HSN also enjoyed "best customer growth" of 9%, due primarily to strength in apparel, accessories and electronics as well as the addition of new brand partners and marketing initiatives, Grossman said.
Year-to-date, net income soared by 73% to $57.236 million on a 9% sales increase to $2.08 billion.

 

Featured Video

  • 1200 Suppliers are Ready for You at Intertextile Shanghai

    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 August 2017

See the August 2017 issue of Home & Textiles Today. In this issue, we look at the Top 50 Retailing Giants Report, plus Manufacturing: Made in the USA gaining ground; International: Portugal ramping up exports; New products: NY Now home textiles introductions; Outlook: Commentary from H&TT's editors; and Planning: Trade show calendar.

See details!