Posts Tagged ‘HSN’

HSN, QVC’s Parent To Report 2Q Earnings

July 15, 2017

HSN Inc., about to be swallowed up by QVC’s parent company, as well as that parent, Liberty Interactive Corp., will be releasing their second-quarter results early next month, both companies announced this week.

HSN will report its second-quarter earnings Aug. 3 at 8 a.m., before the market opens.

Chief Financial Officer Rod Little; Bill Brand, chief marketing officer of HSNi and president of HSN; and Judy Schmeling, chief operating officer of HSNi and president of Cornerstone Brands, “who together constitute the Office of the CEO,” will hold a conference call at 9 a.m. to review these results.

Those interested in participating in the conference call should dial 877-307-0246 or 224-357-2394 at least five minutes prior to the call. There will also be a simultaneous audio webcast available via the company’s website at http://www.hsni.com.

A replay of the conference call can be accessed until Aug. 17 by dialing 855-859-2056 or 404-537-3406, plus the pass code 54744987 and it will also be hosted on the company’s website for a limited time.

Liberty Interactive President and CEO Greg Maffei will host a conference call to discuss results for the second quarter Aug. 8, at 2:30 p.m.

Following prepared remarks, the company will host a brief Q&A session during which management will accept questions regarding both Liberty Interactive Corporation and Liberty TripAdvisor Holdings.

Maffei may discuss the financial performance and outlook of both companies, as well as the proposed acquisition of HSN.

The second-quarter earnings conference call will be broadcast live via the internet. All interested participants should visit the Liberty website at http://www.libertyinteractive.com/events to register for the webcast.

Links to the press release and replays of the call will also be available on the website, and the conference call will be archived ror one year after appropriate filings have been made with the SEC.

What Does HSN’s Sale To QVC’s Parent Mean?

July 10, 2017

We’ve been busy at work, and in addition to that we wanted time to mull over Liberty Interactive Corp.’s purchase of HSN Inc. before we blogged in more detail about it.

For some reason we couldn’t find the conference call that Liberty and HSN honchos held on the deal last week, even though it was supposed to be archived on John Malone’s fiefdom’s website. But we did finally read through the slide-show presentation that went with the call.

http://files.shareholder.com/downloads/AMDA-GY7JI/4764467488x0x948623/652F4347-6F0B-48D9-9D4B-2EE0E92881D2/QVC_HSN_Investor_Presentation.pdf

First of all, the initial press release on QVC’s parent paying $2.1 billion for HSN was unclear, in that it did not spell out that there were no plans to merge the nation’s two largest home shopping networks. The investor slide presentation did bring clarity, saying that QVC and HSN will be maintained as distinct brands, which means five channels — QVC, QVC2, BeautyiQ, HSN and HSN2.

The goal is to preserve the “unique identities, cultures and customer following” for the networks.

But at the same time, according to the presentation, the plan is to “optimize five U.S.- based networks (QVC, QVC2, BeautyiQ, HSN, HSN2) and create complementary programming.”

Okey-dokey. Sounds a little contradictory to us.

The other goals are, straight from the presentation, to:

Collaborate on best-in-class digital platforms (mobile, personalization, social, marketing) and next-gen shopping innovations

Extend HSN’s Shop by Remote platform to QVC

Strengthen brand portfolios

Extend top HSN brands to QVC International and Zulily,

Leverage Zulily as brand feeder with younger customers, utilize QVC global development
capabilities

Explore cross-marketing opportunities to better engage existing and potential customers

Share best practices and tools, leverage top talent and create new professional-growth opportunities

Pursue integration opportunities to enable combined company to operate more efficiently,
fund innovation and enhance customer value, including:

Combining technology platforms where appropriate

Leveraging enhanced scale of supply chain and customer service networks

Eliminating redundant corporate and support services

Reducing costs through purchasing synergies

So we can expect to see HSN brands expand globally and pop up on QVC’s numerous international channels.

There were some very interesting additional facts in the presentation, as well. QVC has 8 million customers, and 6 million of them don’t shop at HSN today, according to Liberty. We find that hard to believe, since we shop at both nets and Evine as well, but that’s what they said. HSN has 5 million customers.

By cross-marketing, QVC can try to get some of HSN’s customers to shop with it.

QVC has 29 on-air hosts, while HSN has 24, just FYI.

And of course, whenever one company buys another one there is always talk of synergies, which basically means people are going to lose their jobs. In this acquisition, there’s a lot of places where QVC and HSN have overlap and where cost-cutting can happen. A lot of it may be behind the scenes, however.

For example, cable networks have what are called affiliates sales departments, the executives and sales reps who negotiate the contracts for QVC and HSN to get carried on your cable system or by your DBS provider, be it Comcast or DirecTV. You won’t need two affiliate sales departments to handle that function.

And with QVC and HSN under one roof, whoever survives in affiliate sales will now have a bundle of five networks it can bring to cable companies. Just like a Discovery Communications with its many networks or a Viacom, the QVC-HSN affiliate sales reps can tell a Comcast that if it carries smaller startup channels like BeautyIQ, it will get a better deal on the larger channels, QVC and HSN.

There are other “synergies.” Some vendors supply goods to several home shopping networks. One of our readers recently reported that she had ordered bedding from Paula Deen’s line on Evine, but when the order came it was Northern Lights, as we recall, which is sold by QVC. The point is that one manufacturer is making items for both channels.

Vendors who manufacture goods for QVC and HSN might get squeezed, with Liberty trying to negotiate much cheaper deals because it has leverage as a major customer of such companies.

The big advantage of this merger, as everyone and their mother has pointed out, is that this will increase QVC’s and HSN’s scale as digital players, putting them in a better position to compete against giant Amazon. The digital sales of both those home shopping channels have soared over the past few years, and with distribution centers and those of their sister companies, Zulily and Cornerstone, they gain traction against the big “A.”

HSN and its Cornerstone unit have warehouses in cities such as Piney Flats, Tenn., Fontana, Calif., Roanoke, Va., Monroe, Ohio, and Scottsdale, Ariz.

For QVC and Zulily, there are fulfillment centers Rocky Mount, N.C., Florence, S.C., Suffolk, Va., Ontario, Calif., Lancaster and Bethlehem, Penn., McCarran, Nev., and Lockborne, Ohio.

Liberty needs a lot of distribution points to beat Amazon at its own quick-delivery game, but are all the above too many? We’ll see.

Liberty crowed about HSN in its presentation, saying that it brings a “rich legacy of innovation” to the QVC Group.

Liberty cited HSN’s “highly engaging programming and events, including movie tie-
Ins” and “American Dreams entrepreneur search series.”

There was also a shout-out to HSN’s leading brands, including Joy Mangano’s
Ingenious Designs, Andrew Lessman’s ProCaps Laboratories, IMAN Global Chic, Jennifer Flavin Stallone’s Serious Skincare, Wolfgang Puck Kitchen, Diane Gilman
Fashion and the Concierge Collection.

QVC’s top honcho, Mike George, will ride herd over the new and larger QVC Group.
But what will happen with the top management at HSN?

Former CEO Mindy Grossman has flown the coop, already starting her new gig at Oprah Winfrey’s Weight Watchers. Bill Brand is a very talented HSN honcho, and we hope he’s in line for a promotion to fill Grossman’s high-heels.

QVC To Buy HSN In $2.6 Billion Merger

July 6, 2017

You may have to kiss goodbye to a lot of your favorite hosts and vendors at the two top home shopping networks, because QVC’s parent company is buying HSN.

At first blush, it appears that Liberty Media Interactive Corp. will keep both QVC and HSN operating as two separate channels, but John Malone’s company anticipates cost savings, and that that usually translates to people losing jobs. Believe us, we know firsthand. But we have not listened to the conference call on the deal yet to be sure.

The huge news was announced Thursday morning, coincidentally just a day after HSN bigwig Mindy Grossman started her new gig at Oprah Winfrey’s Weight Watchers.

http://ir.libertyinteractive.com/releasedetail.cfm?ReleaseID=1032273

http://www.philly.com/philly/business/qvc-home-shopping-network-merge-20170706.html

The acquisition gives Liberty a portfolio of five domestic home shopping channel, namely QVC, QVC2, BeautyiQ, HSN and HSN2.

The all-stock deal is valued at $2.6 billion, with Liberty acquiring the 62 percent of HSN Inc. it doesn’t own. Liberty will offer compensation of $2.1 billion in shares, but the press release says there will be $2.6 billion of “total enterprise value,” whatever that means.

“We are excited to announce the acquisition of HSNi,” Liberty CEO Greg Maffei said in a canned statement.

“The addition of HSN will enhance QVC’s position as the leading global video eCommerce retailer. Every year they together produce over 55,000 hours of shoppable video content and have strong positions on multiple linear channels and OTT [over the top] platforms. The value of the combined QVC, HSNi and zulily will be further highlighted when later this year QVC Group becomes an asset-backed stock as part of the previously announced split-off of Liberty Ventures.”

Here’s what smiling QVC honcho Mike George had to say in the press release.

“We’re thrilled to welcome the HSNi team to our company,” he said.

“HSNi founded the industry 40 years ago and helped it grow with exciting initiatives like Shop By Remote and media integrations with leading content producers. By creating the leader in discovery-based shopping, we will enhance the customer experience, accelerate innovation, leverage our resources and talents to further strengthen our brands, and redeploy savings for innovation and growth. As the prominent global video commerce retailer and North America’s third largest mobile and eCommerce retailer, the combined company will be well-positioned to help shape the next generation of retailing.”

Here’s what Liberty says the benefits of the deal are: increase scale, enhancing the competitive position of QVC Group; meaningful synergies through cost reduction and revenue growth opportunities; increased development of eCommerce, mobile and OTT platforms; optimize programming across five U.S. networks; cross marketing to better engage existing and potential customers; financial optionality due to HSNi’s lower debt leverage.

HSNi consists of HSN and Cornerstone, which includes Ballard Designs, Frontgate, Garnet Hill, Grandin Road and Improvements.

Post-closing of the deal, expected in the fourth quarter, HSNi headquarters will remain in St. Petersburg and will be overseen by George.

“Joining the QVC Group will give us instant access to global consumer markets, a leadership team with deep expertise and a global perspective, and the opportunity to further strengthen our content-based brand portfolios in a changing retail landscape,” said Arthur Martinez, HSN’s board chairman.

“We have both been innovators in a growing and dynamic retail environment with a unique vision of what shopping should be, and as new technologies continue to change our everyday lives, together we can develop the next generation of shopping for the next generation of consumers.”

Maffei and George discussed the transaction in a conference call this morning, which will be archived on Liberty’s website. To access the webcast go to http://www.libertyinteractive.com/events.

We can’t listen now, but will later and report back.

Our Fav Fitflops Trot Onto HSN

June 29, 2017

Three cheers for HSN for premiering Fitflops tonight as its Today’s Special.

If you are not familiar with the brand, these sandals and shoes have been engineered with special soles that distribute your body weight and absorb shock for maximum comfort.

Our sister and hairdresser first recommended these to us when we broke our left ankle, for support for our feet. We have eight pairs now, nearly all of them purchased at TJ Maxx. We paid $39.99 for most of our’s, but they normally retail for much more, $80 or more depending on the style and whether they are leather or not.

HSN is selling them for $49.99, which is a pretty good price break.

Jewelry Vendor Victoria Wieck Exits HSN

June 19, 2017

We suspected as much, but now it’s official: Jewelry vendor Victoria Wieck is gone from HSN after nearly two decades.

Someone, and thanks for that, posted on our blog that Wieck announced that she was doing her last show on the home shopping network, after appearing there for 19 years.

“They are airing her final show right now,” the person wrote. “No explanation given other than this is her last show after 19 years.”

Another one wrote, “I am disappointed to see Victoria Wieck go. She is a class act. I hope she goes to JTV. Love, love, love JTV. I did buy some gorgeous rings on clearance today. Good bye for now, Victoria. Hopefully see you soon!”

Is Suzanne Somers Bound For QVC?

June 2, 2017

UPDATE: A reader told us she saw a QVC promo saying that Somers is coming to the network in July.

Is this a sign of things to come?

One of our readers noted that several of Suzanne Somers’ products are now on QVC’s website, listed as “new.” The items include protein shakes.

http://www.qvc.com/catalog/search.html?langId=-1&storeId=10251&catalogId=10151&keyword=Somers

So is the blonde actress-entrepreneur-author coming to the No. 1 home shopping network?

Somers for years was on HSN hawking jewelry, clothes and diet food. Then she landed at Evine for several years, until announcing recently that she was leaving there.

We’re told that many, many years ago Somers was on QVC selling her Thighmaster.

So maybe she’s about to return.

Is Suzanne Somers Bound For QVC?

June 1, 2017

Is this a sign of things to come?

One of our readers noted that several of Suzanne Somers’ products are now on QVC’s website, listed as “new.” The items include protein shakes.

http://www.qvc.com/catalog/search.html?langId=-1&storeId=10251&catalogId=10151&keyword=Somers

So is the blonde actress-entrepreneur-author coming to the No. 1 home shopping network?

Somers for years was on HSN hawking jewelry, clothes and diet food. Then she landed at Evine for several years, until announcing recently that she was leaving there.

We’re told that many, many years ago Somers was on QVC selling her Thighmaster.

So maybe she’s about to return.

Is Big HSN Sale On Victoria Wieck Jewelry A Bad Sign?

May 18, 2017

Is Beverly Hills jewelry designer Victoria Wieck headed for the door at HSN?

A reader pointed out that all of her jewelry, real gemstones and absolute, are on clearance on HSN.com.

She is a lovely lady, but we feel her designs have grown rather stale. Maybe the home shopping network thinks the same thing. Or maybe not.

Wieck certainly has loyal fans who will be disappointed if she exits.

HSN, Time Inc. Partner On Food & Wine Line

May 11, 2017

HSN and Time Inc.’s Food & Wine magazine are teaming up, and will be collaborating on a line of cookware and other kitchen goods, the companies said Wednesday.

The home shopping network and the ailing publishing giant are launching a dedicated distributed content platform, where users can explore shoppable content, exclusive instructional videos and recipes.

The FoodandWine.com platform will feature a branded product line designed by the Food & Wine editorial team and tested by Food & Wine’s team of kitchen experts in the magazine’s kitchen.

The product range include cookware, cutlery, kitchen tools and accessories, small kitchen appliances and more, ranging in price from $20 to $200.

“We are thrilled to collaborate with Time Inc. to introduce new partnership strategies that will engage customers in unique ways, leveraging both our combined content-driven experiences and target audiences,” HSN President Bill Brand said in a canned statement.

“We are creating a business model that will serve as a cornerstone in our strategy to inspire customers to shop wherever they go.”

HSN and Food & Wine will be hosting a national casting call to secure a culinary talent representative for the collaboration. The selected person will appear on HSN and FoodandWine.com, sharing their expertise within the culinary space to demonstrate the product line. The talent search will be conducted this summer.

“The opportunity to partner with HSN and expand Time Inc.’s brands is a strategic focus. The combination of our premium brand Food & Wine, and HSN’s consumer experience is an ideal partnership as we unlock new platforms that expand our audience and drive revenue,” said Bruce Gersh, Time Inc.’s senior vice president of strategy and business development.

The interactive storefront will launch in October on FoodandWine.com.

Lifestyle Diva Martha Stewart Brings Clothes, Skincare To QVC

May 6, 2017

Martha Stewart

Former jailbird Martha Stewart has bounced several home shopping networks, and she is now mounting a return to QVC.

License company Sequential Brands Group Inc. this week announced that Stewart, a native of Nutley, N.J. — where we spent an unpleasant 13 years — has inked a multi-year deal to bring skincare, apparel, and food and beverage to QVC.

“Our brand has always been devoted to teaching and inspiring people to live more beautiful, more functional and more meaningful lives and our products provide solutions to do just that,” the blonde lifestyle queen said in a canned statement.

“I am thrilled to partner with QVC, which offers unique opportunities to engage directly with an even broader audience, bringing to life several new categories for the Martha brand including beauty and fashion.”

The new collaboration, which slated to debut in the second half of this year, will feature frequent appearances on QVC by Martha Stewart and a team of her experts.

“QVC at its core is about the joy of discovery and the power of relationships, and few do a better job of connecting with fans and inspiring them to embrace new ideas than Martha Stewart,” QVC President and CEO Mike George said. President and CEO.

“QVC combines the best of retail, media and social to create the most engaging shopping experience, and to collaborate with a brand such as Martha’s further emphasizes our commitment to excellence and innovation. By leveraging the power of this relationship, QVC, which is among the nation’s top mobile and eCommerce retailers, brings to our customers Martha’s passion and expertise in a special and exciting new way.”

Sequential Brands CEO Karen Murray, added “QVC’s proven differentiated retail experience plays perfectly with the strength of the Martha Stewart brand. We are excited by this opportunity as it provides the brand with a new channel of distribution and further expansion into untapped categories where we see strong sales potential.”

Stewart has hawked products on QVC and HSN, and at least one ex-QVC host says she was a nasty piece of work.

The boilerplate on Stewart doesn’t mention her incarceration:

Martha Stewart is an Emmy Award-winning television show host, entrepreneur, bestselling author of 88 books, and America’s most trusted lifestyle expert and teacher.

Millions of people rely on Martha Stewart as a source of useful “how-to” information for all aspects of everyday living – cooking, entertaining, gardening, home renovating, collecting, organizing, crafting, holidays, healthy living and pets. Currently, the Martha Stewart brand reaches approximately 100 million consumers across all media and merchandising platforms each month.

And what exactly is Sequential? Here is its boilerplate from the press release:

Sequential Brands Group, Inc. (Nasdaq:SQBG) owns, promotes, markets, and licenses a portfolio of consumer brands in the fashion, active, and home categories, which includes the Martha Stewart media and merchandising properties.

Sequential seeks to ensure that its brands continue to thrive and grow by employing strong brand management, design and marketing teams. Sequential has licensed and intends to license its brands in a variety of consumer categories to retailers, wholesalers and distributors in the United States and around the world.