Posts Tagged ‘Mindy Grossman’

HSN Catches Sheryl Crow’s First Fashion Line

February 23, 2017

Singer Sheryl Crow, whose “My Favorite Mistake” is one of our favorite songs, is the latest celeb to be doing a fashion line for HSN.

HSN CEO Mindy Grossman revealed that little tidbit during a fourth-quarter analyst call on Wednesday.

In fact, the No. 2 home shopping channel is going a little bit country. It has lined up a number of country artists to do merchandise for it this year.”

“We will celebrate Music City in Nashville, exposing customers to performers who have developed exclusive collection for HSN,” Grossman said, according to a transcript provided by Seeking Alpha.

“The new brand launches will include Sheryl Crow’s first fashion collection, LaBellum by Hillary Scott of Lady Antebellum, Patricia Nash Handbags and Kimberly Schlapman of Little Big Town with Kitchen.”

http://seekingalpha.com/article/4048459-hsn-hsni-q4-2016-results-earnings-call-transcript?part=single

Crow’s line will debut April 13.

http://www.hsn.com/shop/sheryl-crow/16123

Here is what her website says:

Entertainment and lifestyle retailer HSN has partnered with singer, songwriter, and now fashion designer, Sheryl Crow for the upcoming exclusive debut of her first ever lyric inspired fashion line, Sheryl Crow, on April 13th.

The eponymous collection is vintage-inspired and features easy to wear styles for the everyday girl with a rock n’ roll twist. Each piece comes with an empowering and affirmative handwritten personal message or inspiring song lyric from Sheryl.

With prices ranging from $39.90 to $299.90, Sheryl Crow features effortless, ageless apparel and accessories that include novelty tanks and tees, embellished skinny jeans, denim jackets, cow-girl boots and booties, lightweight scarves, and a hobo bag.

http://www.sherylcrow.com/updates/sheryl-debuts-her-new-fashion-line-hsn-29936

HSN’s Q4 Sales Dip 1%, To $769 Million

February 22, 2017

HSN reported on Wednesday that its net sales dipped 1 percent, to $769.3 million, in the fourth quarter versus the prior year.

The No. 2 home shopping network said that the “decrease is largely due to a direct-response television marketing campaign that concluded earlier this year and the prior year’s incremental sales from the initial roll-out for a wholesale business expansion, offset by a 1 percent increase in HSN’s core business.”

Operating income also decreased, by 2 percent, to $64.6 million.

Digital sales rose 9 percent, with penetration increasing 440 basis points to 48 percent.

HSN’s sales increased in wellness, culinary and electronics, offset by decreases in jewelry, apparel and accessories and in shipping revenue.

The decrease in shipping revenue was primarily due to changes in the standard shipping rates, which became effective in last August, as well as increased promotions.

HSN is part of HSN Inc., which also includes the Cornerstone unit. HSNi’s net sales decreased 2 percent in the fourth quarter, to $1.1 billion, with Cornerstone’s net sales dropping 5 percent, to $304 million.

“Clearly, 2016 was a year of disruption in retail characterized by a distracting environment, cautious consumer spending and a heightened promotional climate,” HSN Inc. CEO Mindy Grossman said in a canned statement.

“While this impacted the performance of our business, we have been taking strategic actions to best position HSNi and take advantage of new opportunities, including building our brands with a continued emphasis on digital — now representing 55 percent of our business, with mobile 45 percent of digital.”

“In addition to the disruptive retail climate, our overall fourth-quarter results were affected by certain under-performing product categories — particularly jewelry at HSN and areas within home in the Cornerstone portfolio, the standardization of our shipping and handling practices at HSN and implementation of our supply chain optimization initiative. Also, our year-ago comparisons were distorted by the divestiture of two businesses,” Grossman added.

The home shopping network’s average price point decreased 2 percent, largely due to an increase in promotional activity and changes in product mix. Units shipped increased 2 percent.

Gross profit decreased 9 percent to $229.7 million. Gross profit rate decreased 250 basis points to 29.9 percent primarily due to higher shipping and handling costs and lower shipping revenues.

The increase in shipping and handling costs was largely due to the issues with the implementation of HSN’s supply-chain optimization, changes in product mix and increased shipping cost rates. The implementation issues reduced gross profit by $13 million, or 160 basis points as a percentage of net sales.

HSN said that began phasing in its expanded automation capabilities in its Piney Flats, Tenn., distribution center in the third quarter last year. During that conversion, HSN “experienced implementation issues which had an impact of approximately $16 million, or 19 cents per diluted share, in the fourth quarter which largely impacted gross profit and, to a lesser extent, operating expenses.”

Operating expenses increased 1 percent, to $165.1 million.

Adjusted EBITDA decreased 25 percent, to $75.8 million. Excluding the impact of the supply-chain optimization implementation, operating income was $80.6 million and adjusted EBITDA was $91.8 million, representing a 9 percent decrease.

HSN Inc. also appointed Rod Little as chief financial officer, reporting to Grossman. He comes to HSNi with significant public company expertise in the consumer-products industry, having served as CFO for Elizabeth Arden Inc. as well as a variety of leadership positions with Procter & Gamble.

“We expect our hard work and learnings from 2016 to position 2017 as a year of growth regeneration, with a laser-focus on our proprietary product pipeline; driving customer acquisition, retention and spend; optimizing digital platforms; leveraging our distributed commerce capabilities; advancing our supply chain initiatives and cultivating talent across the organization,” Grossman said.

“We will be executing against these priorities while investing in operational execution for future efficiency and leverage. am particularly excited that Rod Little has recently joined as CFO of HSNi. Rod will be a key partner as we evolve and pursue our strategies with an emphasis on growth, optimal resource allocation, expense management and value creation.”

HSN Pulls Bajalia Line After ‘Cheating’ Claims

February 8, 2017

HSN has stopped selling jewelry from Bajalia International Group after allegations that the firm, which gives work to women in countries like India, has been stiffing them.

The home shopping network made the decision, and CEO Mindy Grossman explained it at length, after the Tampa Bay Times did a devastating story about Bajalia and its founder and owner, Debbie Farah. The investigative piece alleges that Farah owes jewelry craftswomen, her vendors and her employees’ money, and that she made a practice of not paying them.

The Times did a great job on the story. We suggest you read it.

http://www.tampabay.com/news/business/retail/hsn-featured-a-florida-jewelry-company-accused-of-cheating-female-artisans/2311941

Farah’s pitch for Bajalia was that she was giving jobs to women in developing nations, and that these workers were toiling in safe, non-exploitive environments. But the lengthy piece sniffed out a number of not-so-happy campers who are waiting to be paid by Farah, who lives in a five-bedroom home in Florida.

For example, the Times interviewed Jenny McGee, who runs a nonprofit, the Starfish Project, that finds jobs for victims of human trafficking in Asia. They are owed $20,000 from Farah, McGee alleges.

“Vendors say they have repeatedly sought payment from Farah, only to be ignored or berated by phone or email,” The Times wrote. “One vendor hired a collections agency, but others say they had to eat their losses because there’s little international vendors can do to force payment from an American company.”

Or how about the woman in Afghanistan who had 50 workers crafting necklaces and bracelets, a $70,000 order for Bajalia, in 2014. They are still waiting to get paid, according to the Times.

Perhaps Farah doesn’t have the money to pay her bills because she bought a Lexus SUV, was prancing around in designer clothes, and was attending society events in Orlando.

This woman who has won many awards, making Newsweek’s the “150 Women Who Shake the World” list, “has a troubled financial history that includes felony charges for writing worthless checks, a bankruptcy and at least two home foreclosures,” the Times reported.

Here is Bajalia’s business model, apparently. It pays women $8 to $20 to make necklaces and bracelets with gemstones such as lapis. Bajalia, in turn, hawks the pieces for $300 or more on HSN.

The network, which started selling the Bajalia line in 2011, has pulled the jewelry off its website. A few days after the Times story appeared, Grossman wrote a letter to the paper where she said HSN was dedicated “to ethical practices.”

http://www.tampabay.com/opinion/letters/tuesdays-letters-hsn-committed-to-ethical-business-practices/2312253

“When we learned of these claims, we removed all Bajalia jewelry from our websites and programming and put a hold on all product sales,” she wrote.

“We also initiated an internal review. The issues raised in the recent Tampa Bay Times article will now be included in that review, and we have asked Bajalia to provide us a full accounting of all products sold on HSN and status of payment to those vendors. We will review this information to ensure that anyone who had done business with HSN was treated properly and take appropriate steps if they have not.”

HSN’s Grossman Dishes A Bit On 3Q Call

November 11, 2016

We’ve been busy and just getting around to offering some tidbits from HSN honcho Mindy Grossman from her third-quarter call with analysts this week.

It was a tough one for the No. 2 home shopping network, which saw sales dip 3.5 percent $569.7 million.

Shoes and apparel from designer brands and personalities, namely Vince Camuto and Wendy Williams, proved to be bright spots for HSN, accordihg to Grossman.

“As part of our strategy to drive commerce on non-traditional platforms, we intensified our partnership with Wendy to include daily promotions on her highly followed, number one syndicated talk show as well as social activations leading up to our appearance on HSN and the launch of her Shoe Closet in a primetime special on The List and on HSN.com,” Grossman said, according to a transcript from Seeking Alpha.

http://seekingalpha.com/article/4020616-hsn-hsni-q3-2016-results-earnings-call-transcript?part=single

HSN has in fact really promoting Williams. We saw the network even ran an ad for her in the New York Post, of all places.

“Additionally, we’ve teamed up with award-winning entrepreneur and the creator of Dreamers Ventures, Liliana Gil Valletta, to launch Project American Dreams, a nationwide search to discover, mentor and fast-track product innovations created by Latino entrepreneurs on HSN in partnership with the National Hispanic Chamber of Commerce,” Grossman said.

“We’re also featured on CBS’s hit series, ‘Hatched,’ with a dedicated HSN presence as we identify new entrepreneurs with innovative products that we can exclusively bring to market,” she told Wall Street.

The other thing that caught our eye was this kernel about our favorite category, jewelry.

“As we reposition our jewelry portfolio, we recently launched an exclusive collection from Jay Strongwater, a luxury brand with a strong design aesthetic and following. We will be expanding the brand into home décor and collectibles,” Grossman said.

HSN Sales Drop 3.5 Percent In Third Quarter

November 7, 2016

HSN had another tough quarter this year.

Net sales for the third quarter were $569.7 million, a decrease of 3.5 percent from the prior year. That’s the second quarter in a row that revenue has dipped.

Digital sales grew 6.7 percent, with penetration increasing 430 basis points to 44.8 percent. Revenue for apparel and accessories and wellness rose, offset by decreases in other product categories and in shipping revenues, the network reported on Monday.

A decrease in shipping revenue was primarily due to increased promotions and changes in the standard shipping rates, which became effective in August.

The average price point decreased 5 percent, largely due to an increase in clearance activity and changes in product mix. Units shipped increased 1 percent.

Gross profit for the network decreased 7 percent to $190 million.

The gross profit rate decreased 130 basis points to 33.3 percent, primarily due to a decrease in shipping revenue and, to a lesser extent, increased clearance activity.

Operating expenses decreased 4 percent to $143 million, largely due to decreases in employee-related costs, primarily incentive compensation, and bad debt expense. Operating expenses (excluding non-cash charges) decreased 4 percent to $131.9 million.

HSN’s parent is HSN Inc., which also includes the Cornerstone unit. That unit divested two businesses in the third quarter, TravelSmith and Chasing Fireflies.

HSN INc.’s sales, HSN and Cornerstone, saw their overall sales dip 5 percent to $823 million, or 3 percent excluding the impact of the divested businesses

“Similar to last quarter, our third-quarter results reflect weaker performance in specific HSN merchandising categories; softness in the outdoor segment within the Cornerstone portfolio; and a difficult consumer environment,” HSN CEO Mindy Grossman said in a canned statement.

“This was compounded by disruptive and distracting high-profile media events, particularly in August and September, that influenced our customers’ buying patterns and television viewership behaviors.”

“We have strategic actions under way to improve HSNi’s performance and have made progress in certain areas,” Grossman said. “These include expanding our proprietary merchandising pipeline and unique destination programming; elevating our content, digital and data capabilities; extending our distributed commerce platforms including experiential retail; and the divestiture of businesses for a focused portfolio.

“While our near-term outlook remains cautious, and it will take time to fully realize the benefits of our initiatives, I am confident in our ability to execute on our plans while proactively managing our overall expenses to drive HSNi’s long-term performance and value creation for our shareholders.”

HSN To Post Third-Quarter Results Nov. 7

October 17, 2016

HSN Inc., parent of the No. 2 home shopping network, will release its third-quarter earnings Nov. 7.

CEO Mindy Grossman and Judy Schmeling, chief operating officer and chief financial officer and president of Cornerstone Brands, will hold a conference call at 9 a.m. to review the 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 Monday, November 21, 2016 by dialing 855-859-2056 or 404-537-3406, plus the passcode 94629115 and will also be hosted on the company’s website for a limited time.

HSN’s Sales Drop 3 Percent, To $557 Million, In Second Quarter

August 5, 2016

The No. 2 home shopping network, HSN, saw its net sales dip 3 percent, to $557.2 million, in the second quarter versus the prior year, the channel reported on Thursday.

Sales in electronics and beauty rose, offset by decreases in other product categories and in shipping revenues, the network said in a press release.

Roughly one-third of the decline in net sales was attributable to the conclusion of a direct-response television marketing campaign in the prior quarter.

Digital sales increased 5 percent with penetration increasing 330 basis points to 43.6 percent. The return rate improved 60 basis points to 17.4 percent; units shipped decreased 2 percent; and average price point decreased 2 percent.

Gross profit decreased 6 percent to $197.1 million. Gross profit rate decreased 120 basis points to 35.4 percent, primarily due to an increase in shipping promotions, higher inventory reserves and changes in product mix. The change in rate was also negatively impacted by favorable settlements of vendor claims in the prior year.

Operating expenses decreased 9 percent to $142 million, primarily due to decreases in employee-related costs and bad-debt expense and a $3 million charge in the prior year related to the planned closure of one of HSN’s distribution centers.

Excluding non-cash charges and the $3 million severance charge, operating expenses as a percentage of net sales were 23.5 percent compared to 24.7 percent in the prior year.

Operating income increased 3 percent to $55.1 million. Adjusted EBITDA decreased 3 percent to $66.3 million.

“HSNi’s results were impacted by the performance of certain merchandising categories at HSN as well as a weaker season and a greater promotional environment in the outdoor business at Cornerstone,” HSN Inc. CEO Mindy Grossman said in a statement.

Cornerstone Brands, the catalog company, along with the HSN TV network is part of HSN Inc.

“Recognizing that we are navigating in a challenging macro environment, we are focused on execution, combined with disciplined operating expense management and optimizing operational efficiencies,” Grossman said.

“At HSN, we are accelerating our targeted customer acquisition strategies and intensifying our efforts to drive product demand through proprietary products, new programming, and partnerships to improve our top-line performance,” she said.

“At Cornerstone, we are concentrating on the brands within the portfolio that have the greatest growth opportunities, including our expanded retail distribution channels. As a result of this strategic focus, we have entered into a letter of intent to sell our TravelSmith and Chasing Fireflies businesses.”

HSN also announced that Judy Schmeling, currently HSN’s chief operating officer and chief financial officer, has been appointed president of Cornerstone.

“In addition to her new role, she will continue to serve as COO of HSNi and will remain CFO during the transition until a permanent successor is appointed,” Grossman said.

“Judy has extensive strategic and financial expertise and over 20 years of experience at the company across all areas of the business. I have great confidence that she is the right leader to drive the Cornerstone business.”

Sales for HSN Inc., both HSN and Cornerstone, decreased 4 percent to $854.3 million. Cornerstone’s net sales decreased 5 percent to $297.1 million.

HSN To Report Second-Quarter Results Aug. 4

July 14, 2016

HSN Inc. will release its second-quarter earnings Aug. 4 at 8 a.m., before the market opens, the company said Thursday.

CEO Mindy Grossman and Judy Schmeling, chief operating officer and chief financial officer, 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.co

A replay of the conference call can be accessed until Aug. 18 by dialing 855-859-2056 or 404-537-3406, plus the pass code 46663834 and will also be hosted on the company’s website for a limited time.

HSN CEO Mindy Grossman Received $4.9 Million In Comp Last Year

April 17, 2016

We’ve been so busy that we missed the fact that earlier this month HSN filed its proxy statement with the SEC, which includes the compensation that execs at the No. 2 home shopping network received last year.

http://www.hsni.com/secfiling.cfm?filingID=1434729-16-27&CIK=1434729

In the case of CEO Mindy Grossman, her comp was $4.9 million, just a hair less than in 2014. Her salary was $1.2 million the same as last year, and she also received stock awards and options.

COO and CFO Judy Schmeling took in $1.8 million in executive compensation in 2015, down from $2.1 million the prior year.

And Bill Brand, HSN president and chief marketing officer for HSN Inc., received executive compensation of $1.6 million, down from $1.9 million in 2014.

By way of comparison, under his new contract Mike George, president and CEO of QVC Inc., this year will be getting a base salary of $1.25 million — but that’s just his base.

HSN To Report First-Quarter Results May 4

April 14, 2016

HSN will release its first-quarter earnings May 4 at 8 a.m. before the market opens, the home shopping network said Wednesday.

CEO Mindy Grossman and Judy Schmeling, chief operating officer and chief financial officer, will hold a conference call at 9 a.m. to review the 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 on the company’s website at http://www.hsni.com.

A replay of the conference call can be accessed until May 18 by dialing 855-859-2056 or 404-537-3406, plus the pass code 86090130 and will also be hosted on the company’s website for a limited time.