Posts Tagged ‘Hurricane Irma’

HSN Sales Dip 6% In Third Quarter

November 10, 2017

HSN reported its third-quarter earnings this week, and Hurricane Irma took a $13 million chunk out of the channel’s sales.

The No. 2 home shopping network registered a 6 percent decline in its sales, to $536.2 million, but part of that drop was blamed on the hurricane.

HSN closed down its Florida HQ and broadcast live from Nashville during the storm.

“In September, HSN implemented its business continuity plan as a result of the approach of Hurricane Irma,” the company said in its press release.

“HSN closed its headquarters, redeployed critical personnel and relocated its broadcast studios to temporary facilities outside of the storm’s track. These actions resulted in increased operating expenses and limited program effectiveness which we estimate impacted net sales and Adjusted EBITDA by $13 million and $5 million, respectively.”

Here are the other key grafs from the press release.

Digital sales decreased 3 percent while penetration increased 130 basis points to 46.1 percent. Sales decreased in electronics, apparel and accessories and beauty, offset by increases in fitness and home. Shipping revenues declined primarily due to the August 2016 changes in the standard shipping rates. Average price point decreased 6 percent largely due to changes in product mix. Units shipped decreased 2 percent.

Gross profit decreased 5 percent to $181.3 million. Gross profit rate increased 50 basis points to 33.8 percent primarily due to an increase in product margins, partially offset by higher outbound shipping rates and fulfillment costs.

Operating expenses increased 5 percent to $150.3 million driven by increases in employee-related costs and bad debt expense. HSN incurred approximately $1.6 million in expenses related to Hurricane Irma and approximately $0.9 million in allocated transaction costs related to the merger.

Operating income decreased $16 million, or 34 percent, to $31 million. Adjusted EBITDA decreased $15.4 million, or 27 percent, to $42.6 million. The impact of Hurricane Irma on Adjusted EBITDA is estimated to be $5 million. The supply chain optimization implementation resulted in an additional $1.3 million of costs in the third quarter of 2017 which impacted gross profit and operating expenses.

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Hurricane forces HSN to air from Tenn.

September 10, 2017

A tip of the hat to HSN for shutting down its operations in St. Pete because of Hurricane Irma.

Like a number of businesses in the Tampa, Fla., area that are in the hurricane’s path, the No. 2 home shopping network closed up shop for the safety of its employees.

http://www.tampabay.com/news/business/retail/businesses-throughout-tampa-bay-shut-down-early-as-hurricane-irma-nears/2336658

We are watching HSN now at 10:30 p.m. EST, and it is airing past broadcasts.

But it will be telecasting from the facilities it has in Tennessee, as it told folks through its Twitter feed.

“Our FL campus is closed,” the tweet yesterday said. “Employees & partners are focused on families. Team in TN will cont live broadcast at midnight. If in FL, stay safe!”

We have a lot of friends now in Florida, not to mention our brother (who has opted not to evacuate), and we pray they are all safe and the storm isn’t as fierce as predicted.