Sorry we’re late with this folks. We worked a 12-hour day at our day job Thursday, so couldn’t blog this ’til now. And we haven’t listened to the conference-call replay yet.
Last year HSN’s net sales increased 5 percent to $2.3 billion, including 10 percent growth in digital sales, from the prior year, the home shopping network reported Thursday morning.
“Our results for the quarter and the year at HSNi reflect our ability to capitalize on the shift in retail driven by technology, social networks and mobility,” HSN Inc. CEO Mindy Grossman said in a canned statement.
“The company achieved 7 percent sales growth and 27 percent EPS (earnings per share) growth for the quarter and digital penetration increased 250 basis points to 47 percent, almost half of our total business,” she said.
“HSN experienced a number of key milestones, including 3 percent growth in its customer file — the largest in five years — and retention rates achieving 10-year highs. HSN’s mobile sales continued to accelerate, reaching $63 million in the quarter, nearly exceeding total mobile sales for all of 2011.”
HSN Inc., which includes HSN and Cornerstone, saw its net sales rise 6 percent last year, to $3.07 billion. Cornerstone’s sales were up 10 percent to $1 billion, including 18 percent growth in digital sales, compared to the 53-week period in 2011.
For the fourth quarter, HSN’s sales saw a 7 percent gain, to $683.8 million, compared to the prior-year quarter. Digital sales rose 11 percent.
“Sales were strong in electronics, home design, household and beauty, partially offset by lower sales in jewelry,” HSN said in a press release.
“Shipping and handling revenue decreased 10 percent primarily due to an increase in shipping and handling promotions. The average price point decreased 3 percent, the units shipped increased 10 percent and the return rate decreased 90 basis points to 18.6 percent primarily due to changes in product mix.”
Gross profit increased 6 percent to $224.8 million. Gross profit margin decreased 30 basis points to 32.9 percent from 33.2 percent. The margin decline was largely due to the increase in shipping and handling promotions but was partially offset by increases in product margins.
Adjusted EBITDA increased 6 percent to $84 million compared to $79.5 million in the prior year driven by the growth in net sales. Operating income increased 7 percent to $74.7 million compared to $70 million in the prior year.