HSNI says home business very strong
HTT Staff -- Home & Textiles Today, 2/23/2012 2:26:44 PM
St. Petersburg, Fla. -- HSN, Inc. ceo Mindy Grossman described its home business as "very strong" during the fourth quarter and also announced that home was the biggest category for sku expansion online with an increase of 31% over 4Q last year.
Cornerstone's overall sales were up 13% with digital sales rising 19%. HSN's net sales increased slightly to $639.2 million, including 8% growth in digital sales.
HSNI reported a net sales increase of 4%, digital sales were up 13%, gross profit margin improved 80 basis points to 35.3%, adjusted EBITDA was up 11% to $103.6 million, and adjusted EPS increased 16% to 89 cents.
At Cornerstone, record 4Q and annual sales were reported for the Ballard Design, Frontgate, and Garnet Hill brands.
Grossman said Ballard Design's growth emanated from new product introductions and marketing programs, and attributed Frontgate's revenue boost to a strong holiday assortment and interior furnishings.
She added that Grandin Road achieved "strong success" and that Garnet Hill saw positive results from expanding categories and products, though home products were not among those she cited specifically.
Grossman also announced a continuation of HSNI's aggressive ecommerce strategy with a major website relaunch for HSN in the second half of 2012. Cornerstone's digital plans, she said, will be based on four prongs: heightening the website experience, leveraging search, customizing email and investing in mobile with a focus on tablet optimization.
The ceo concluded her remarks by dispelling rumors that she may be leaving the company, saying, "Reports of my death have been greatly exaggerated and stating emphatically, "I'm not going anywhere."
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