Posts Tagged ‘Cornerstone’

Judy Schmeling Promoted To COO, CFO Of HSN Inc.

May 16, 2013

HSN No. 2 honcho Judy Schmeling got a big promotion Wednesday.

Schmeling, who has served as executive vice president and chief financial officer since 2001, was named chief operating officer and CFO of HSN Inc., effective immediately. HSN Inc. includes the home shopping network and the Cornerstone unit.

In her new role, Schmeling will be responsible for supply-chain operations and customer-care functions in addition to providing ongoing leadership for finance and information technology. These four areas are now company-wide centers of excellence spanning HSN and the Cornerstone portfolio of home and lifestyle brands.

Judy Schmeling

Judy Schmeling

“Judy is a world-class leader and the consummate professional, and she has been my partner in transforming HSNi and driving growth across all our businesses,” HSN CEO Mindy Grossman said.

“Under Judy’s leadership, we have strengthened our competitive position, achieved significant top- and bottom-line growth and increased shareholder value. She is superbly qualified to oversee our new operational centers of excellence, which are part of our continued drive to integrate key activities across all of our brands, maximize efficiency and deliver an immersive, seamless end-to-end customer experience.”

As HSN’s COO and CFO, Schmeling’s job will be to ensure efficient, cost-effective support in information technology, logistics and supply chain operations, customer care and facilities for HSN, in addition to managing all finance-related activities. She will continue to be based at the company’s headquarters in St. Petersburg, Fla.

“With this new structure, HSNi is better positioned than ever to capitalize on our strong brands and reshape the landscape of commerce,” Schmeling said in her canned statement. “I’m excited about the opportunity to fully leverage technology, supply chain operations and customer service across all of HSNi.”

Schmeling joined the company in 1994 as director of investor relations and treasury. She was promoted to vice president of strategic planning and analysis in 1998, to senior vice president of finance in 1999, to executive vice president and CFO in 2001, and to CFO of HSN Inc. when the company went public in 2008.

A native Floridian and a graduate of Florida State University, Schmeling is married and has three sons. She serves on the board for Constellation Brands Inc. and the advisory board of FM Global.

HSN also promoted two other senior finance executives, Michael Attinella and Patrick Vonderhaar, both reporting to Schmeling.

Attinella was appointed CFO of HSN and chief accounting officer of HSNi. He joined HSN in 2001 and most recently served as senior vice president, chief accounting officer and corporate controller of HSNi.

Vonderhaar was elevated from vice president and corporate controller to CFO for Cornerstone Brands.

In addition, Rob Solomon has been appointed executive vice president, customer care & operations administration, HSNi, and Bob Monti as executive vice president, Supply Chain & logistics, HSNi, both reporting to Schmeling.

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HSN’s Sales Rise 3 Percent In Second Quarter To $466.4 Million

August 4, 2010

The No. 2 home shopping network HSN Wednesday reported a 3 percent increase in net sales for the second quarter, to $466.4 million.

HSN’s gross profit increased 6 percent to $162.2 million, its parent, HSNi, reported.

HSN.com sales increased 10 percent over the prior year and now represent 30.4 percent of HSN’s net sales, up from 28.4 percent in the prior year.

Gross profit margin improved 120 basis points to 34.8 percent from 33.6 percent. These results were primarily due to a strategic shift in product mix towards fashion and wellness, according to HSN. This mix shift also resulted in a 6 percent increase in units shipped and a 2 percent decrease in average price point.

“At HSN, strong growth in fashion and wellness helped drive an increase in gross profit of 120 basis points and contributed to the 11 percent growth in the number of best customers,” HSNi CEO Mindy Grossman said in a prepared statement.

HSN’s adjusted EBITDA increased 17 percent to $45.1 million from $38.4 million as a result of increased gross profit, partially offset by a 2 percent increase in operating expenses, excluding non-cash charges.

The home shopping network’s operating income increased 20 percent to $34.5 million compared to $28.7 million in the prior year.

HSNi, which owns HSN and Cornerstone, saw net sales grow 8 percent to $690 million in the second quarter over the prior year. Internet net sales increased 16 percent and now represent 38.5 percent of HSNi net sales.

“HSNi’s positive performance continued in the second quarter with a net sales increase of 8 percent and an EBITDA increase of 47 percent,” Grossman said. “Our focus on creating multi-channel experiences for our customers resulted in e-commerce revenue growth of 16 percent and an increase in our Internet penetration to 39 percent from 36 perclent in the prior year.”

Cornerstone’s net sales increased 20 percent to $223.6 million, which included 23 percent growth in Internet sales.

“At Cornerstone, the recovery of the business accelerated with net sales increasing 20 percent led by renewed demand for the Frontgate, Ballard Designs and Garnet Hill brands, turnaround efforts at TravelSmith and e-commerce initiatives across the portfolio,” Grossman said. “We are focused on building our business for the long-term – intelligently, strategically and with a commitment to delivering sustainable results and value for our shareholders.”

HSN Posts 9 Percent Sales Increase In First Quarter

May 5, 2010

HSN saw its net sales jump 9 percent in the first quarter to $518.9 million, the home shopping network reported Wednesday.

Revenue for all of HSNi, both HSN and the Cornerstone unit, also saw a 9 percent gain in the quarter, to $683.2 million.

“We are extremely pleased with HSNi’s first quarter performance as we nearly doubled EBITDA on the strength of a 9 percent net sales gain and a 110 basis point increase in gross profit,” HSN CEO Mindy Grossman said in a canned statement.

“HSN net sales grew 9 percent, including a 15 percent increase at HSN.com as we leveraged our content across multiple channels,” Grossman said. “At Cornerstone, performance continues to improve with the business delivering positive sales growth for the first time in more than two years. We believe these accomplishments reaffirm the effectiveness of the strategies we are employing to drive profitable growth at HSNi.”

Net sales for HSN increased 9 percent led by strong growth in electronics, wellness and fashion. HSN.com sales increased 15 percent over the prior year and now represent 31.6 percent of HSN’s net sales, up from 30 percent in the prior year. Units shipped increased 6 percent and the average price point increased 4 percent due to less promotional activity and product mix.

Gross profit increased 13 percent to $171.6 million and gross profit margin improved 110 basis points to 33.1 percent. The improvement in gross profit was driven mainly by improved product margins due to less promotional activity.

Adjusted EBITDA increased 43 percent to $50.3 million from $35.3 million as a result of increased gross profit, partially offset by a 4 percent increase in operating expenses, excluding non-cash charges. Operating income increased 50 percent to $39.3 million compared to $26.2 million in the prior year.

Adjusted EBITDA both HSN and Cornerstone increased 99 percent to $51.8 million driven by a 9 percent increase in net sales, a 110 basis point increase in gross profit margin and leverage over operating expenses. Operating income increased 170 percent to $37.5 million compared to $13.9 million in the prior year.

Adjusted earnings per share increased 350 percent to 36 cents from 8 cents in the prior year.

HSN Posts Record Fourth Quarter, With 12 Percent Spike In Net Sales

March 3, 2010

HSN CEO Mindy Grossman

Boosted by growth in the electronics, fitness and fashion categories, HSN’s net sales increased 12 percent to a record $611.8 million in the fourth quarter, the home shopping network reported Wednesday.

For 2009, HSN’s net sales were up 3 percent, to $2 billion from $1.96 billion in the prior year.

HSNi’s net sales, which include the HSN network and Cornerstone, in the fourth quarter increased 8 percent to $838.7 million from $778.5 million in the prior year. HSN’s net sales increased 12 percent to $611.8 million, the highest quarterly sales volume in its 32-year history. Cornerstone’s net sales decreased 2 percent to $226.9 million, an improvement compared to the year-to-date decline in net sales of 19 percent through the end of the third quarter.

HSNi’s adjusted EBITDA increased 78 percent $88 million from $49.3 million in the prior year as a result of the 8 percent increase in net sales, an improvement in gross profit margin of 180 basis points and a reduction in operating expenses, excluding non-cash charges, of $3.1 million.

HSNi’s adjusted earnings per share were 74 cents compared to 36 cents in the prior year, an increase of 105 percent. GAAP diluted EPS was 68 cents per share compared to a loss of $38.29 per share last year. The prior-year results included non-cash asset impairment charges of $2.9 billion to reduce the carrying value of goodwill and intangible assets. The asset impairment charges on an after-tax basis were $2.2 billion.

“We are thrilled to report that EPS more than doubled on the strength of record-breaking sales at HSN and a significant improvement in operating performance at Cornerstone,” HSN Inc. CEO Mindy Grossman said in a press release.

“HSN generated a 12 percent increase in sales to $612 million, the highest quarterly sales volume in our 32-year history, and reported sales growth in every division,” Grossman said. “In addition, our continued focus on driving a multi-channel experience resulted in sales growth on HSN.com of more than 22 percent, with e-commerce sales penetration now reaching a high of 32 percent.”

HSN.com net sales grew 22 percent over the prior year and now represent 32.3 percent of HSN’s total net sales, up from 29.6 percent in the prior year.

All product divisions had strong sales performance in the quarter, led by significant increases in electronics, fitness and fashion. Shipped units increased 9 percent and the average price point increased 5 percent due to product mix and less promotional activity.

For HSN and Cornerstone gross profit increased $31.9 million, or 18 percent, to $205.4 million and gross profit margin improved 180 basis points to 33.6 percent compared to 31.8 percent in the prior year. The significant improvement in gross profit was due to less promotional activity and lower procurement costs.

Gross profit margin also benefited from a reduction in inventory reserves due to lower aged inventory levels. Inventories decreased 11 percent, or $24.9 million, compared to the same period last year.

For HSN alone adjusted EBITDA increased 39 percent to $75.5 million as a result of the significant increase in gross profit, partially offset by an increase in operating expenses. The increase in operating expenses was primarily attributable to the effect of a favorable accrual adjustment of approximately $5 million recorded in the prior year for distribution cost liabilities and compensation expense related to performance driven incentives.

For HSN alone operating income was $65.2 million compared to an operating loss of $2.4 billion in the prior year. Operating loss in the prior year included non-cash impairment charges of $2.4 billion related to the write-down of goodwill and intangible assets.

“On a consolidated basis, HSNi delivered an impressive performance: a sales increase of 8 percent, an improvement in gross profit margin of 180 basis points, a reduction in operating expenses and a significant increase in EBITDA of 78 percent,” Grossman said. “These results clearly demonstrate our continued ability to leverage the unique aspects of our business model to drive long-term value for our shareholders.”

HSN Chief Operations Officer Mark Ethier Named CEO Of Cornerstone Catalog Unit, Home of The Territory Ahead

October 5, 2009

HSN Monday named Mark Ethier CEO of its Cornerstone catalog division, which includes Ballard Design, Frontgate, Garnet Hill, Grandin Road, Improvements, Smith+Noble, The Territory Ahead and TravelSmith.

Previously, Ethier was executive vice president and chief operations officer of HSN and a Cornerstone director. He will now focus exclusively on driving and maximizing performance of Cornerstone. Ethier will continue to report to HSN CEO Mindy Grossman.

“Through strict financial and operational rigor, we have begun to see bottom line improvements in the Cornerstone business overall, despite ongoing sales challenges in the luxury home and apparel categories,” Grossman said in a prepared statement. “Mark has been instrumental in achieving this progress. We expect that having Mark focus his attention exclusively on Cornerstone will allow us to maximize the performance of these businesses.”

Ethier had been executive vice president and chief operations officer for HSN since 2004, responsible for all aspects of operations across HSN, HSN.com and Cornerstone. These responsibilities included overseeing customer care, fulfillment, logistics, quality assurance, information technology and administration.

He was HSN’s executive vice president of operations between 2001 and 2004. During his tenure, Ethier led the company’s upgrade of its fulfillment capabilities and improved shipping times, customer service and product quality.

“I am proud of what has been achieved by the operational teams at both HSN and Cornerstone with the transformation of HSN’s multichannel business and the strategic realignment that has been made at Cornerstone in response to the overall retail environment,” Ethier said in a statement. “I look forward to devoting all of my energy to building momentum, maximizing the potential of these prominent brands, and positioning them for future success.”

Prior to HSN, Ethier was with Walt Disney Co. as senior vice president of global operations at The Disney Stores, where he defined and implemented strategies to improve revenue, profitability, and productivity throughout the company’s store base in the United States, Europe and Japan.