Posts Tagged ‘Mindy Grossman’

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.

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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.

Finance Whiz Suze Orman Joins HSN From QVC

February 25, 2016

HSN is getting yet another vendor from QVC: Suze Orman.

Orman has been a fixture on QVC for as long as we can remember, so this is a big move.

HSN CEO Mindy Grossman let the cat out of the bag during a fourth-quarter earnings call with analysts on Wednesday.

She said that the No. 2 home shopping network was “excited about the premier of personal financial guru, Suze Orman, selling the complexities of financial planning as we reinforce HSN as a destination for our customers who trust us to provide value-added services that will be beneficial to them.”

Last we heard, Orman was a Jersey girl like us, living with her girlfriend in Morris County, where we grew up. We believe that she resides in Chester.

We fear that if Orman got a gander at our personal finances, she’d faint.

HSN’s Sales Dip 2 Percent In Fourth Quarter

February 25, 2016

HSN’s net sales slid 2 percent in the fourth-quarter last year, to $778.7 million, versus the year-ago period. And revenue rose 3 percent for 2015, to $2.5 billion, the No. 2 home shopping network reported on Wednesday.

The channel’s operating income dropped 7 percent in the fourth quarter, to $89 million. And for all 2015, operating income was up a slight 1 percent, to $253,6 million.

HSN pointed out that these comparisons were against the prior year’s fourth quarter and full-year results, when net sales, gross profit and operating income was favorably impacted by $5 million of breakage (the reversal of certain customer credits) income.

In the fourth quarter HSN’s sales increased in electronics, wellness and home, offset by decreases in other categories.

“Our improvement in home was driven by the wholesale expansion of our Ingenious Designs business associated with the Joy Mangano brand into other retail outlets,” HSN Chief Financial Officer Judy Schmeling said during a conference call, according to a transcript from Seeking Alpha.

http://seekingalpha.com/article/3926646-hsn-hsni-mindy-grossman-q4-2015-results-earnings-call-transcript?part=single

The return rate improved 30 basis points to 16.3 percent, while units shipped increased 2 percent and the average price point decreased 5 percent primarily due to changes in product mix.

Digital sales grew 1 percent with penetration increasing 100 basis points to 43.3 percent.

Gross profit decreased 4 percent in the quarter and the gross profit rate decreased 50 basis points to 32.4 percent, primarily due to the impact of recognizing the $5 million of breakage income in the prior year.

Excluding the impact of this item, the gross profit rate decreased 10 basis points largely the result of higher shipping promotions, offset by higher product margins driven by lower clearance activity and changes in product mix.

Operating expenses (excluding non-cash charges and reorganization severance costs) decreased 4 percent to $150.8 million and were 19.4 percent as a percentage of net sales compared to 19.7 percent in the prior year. The decrease was primarily due to lower compensation.

Adjusted EBITDA increased 1 percent to $101.4 million. Operating income decreased 7 percent to $89.0 million primarily due to the $5 million of breakage income recognized in the prior year.

The closing of a distribution center cost HSN $2 million in severance costs, with 70 jobs eliminated, according to Schmeling.

Here are some of Grossman’s remarks from the call:

Sales were up in our overall home business, driven by our expanded retail footprint with our Ingenious Designs products from the Joy Mangano brand. This retail rollout was strategically executed to coincide with the premiere of the Joy movie, which opened in theaters on Christmas Day.

The products, which leverage Joy Mangano’s broad customer appeal, are now available at Target, Bed Bath & Beyond, The Container Store, and Macy’s, and we’re pleased with the initial response.

Incidentally, Jennifer Lawrence won a Golden Globe for Best Actress for her performance in the movie and has been nominated for an Oscar. We’re capitalized on the increased national exposure for the brand, including appearances for Joy on Good Morning America, CBS Sunday Morning, as well as cover stories in Good Housekeeping and People, among others.

In other areas within home, warmer weather unfavorably impacted demand for climate-related products, such as heaters, flannel bedding, and fireplaces. We’re also repositioning some categories within home, particularly floor care to induce newness and differentiated products at an accelerated pace.

We had sequential improvement in our jewelry business, particularly in productivity and profitability, as we reassert our authority in this category. Although sales in jewelry were down in the quarter, primarily driven by reduced air time as we rebuilt the business, but we’re encouraged by the strong launches of both our fine jewelry and elevated fashion collection.

In fine jewelry, we launched Diamond Couture and Diamonds Unleashed by Kara Ross, and in fashion jewelry, Kristin Chenoweth and jewels by Jennifer Miller. As I’ve mentioned before, we are optimistic about this business going forward. We have a distinct delineation between brands and are building upon these and other new launches.

In apparel and accessories, our Buy Now Wear Now strategy contributed to the category’s most recent success. Our spring fashion series, which just launched emphasizes Layer Now Lighten Later, providing us with more flexibility to manage unpredictable weather patterns, while still offering new fresh items and colors into our assortment. Premieres will include Sperry, Harve Benard, Tiki and Jay Godfrey, and an exclusive handbag collection from Vince Camuto.

HSN and Cornerstone are both part of HSN Inc. In the fourth quarter, HSN Inc.’s net sales were down 2 percent, to $1.1 billion. For the year, they increased 3 percent, to $3.7 billion.

Last year, the company racked up severance costs stemming from a reorganization and planned closing of a distribution center.

“We have made progress in certain key areas, including optimizing our sophisticated digital platforms,” Grossman said in the earnings press release. “For the first time, HSNi’s digital penetration exceeded half our sales at 52 percent, with digital reaching nearly $2 billion in annual sales. Additionally, mobile now represents nearly 40 percent of total digital sales.”

“Recognizing the continued volatility in the retail environment, we remain focused on execution, working cross-functionally across the organization to drive growth,” Grossman said.

“We will continue to extend our reach to leverage our vast content across traditional and alternative platforms, curate differentiated products and experiences, build communities with customers and provide a frictionless and seamless commerce experience.”

HSN To Release Fourth-Quarter Results Feb. 24

January 28, 2016

HSN will release its fourth-quarter and 2015 results Feb. 24, the home shopping network said Wednesday.

The earnings will be reported at 8 a.m. before the market opens. 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 available via the company’s website at http://www.hsni.com.

A replay of the conference call can be accessed until March 9 by dialing 855-859-2056 or 404-537-3406, plus the pass code 29819564 and will also be hosted on the company’s website for a limited time.

HSN To Premiere Diamonds Unleashed By Kara Ross

November 20, 2015

Whenever anyone mentions diamonds, they get our attention. And HSN has. And we’re talking ethical diamonds here.

HSN is teaming up with jewelry designer Kara Ross to debut the Diamonds Unleashed collection, which supports women’s empowerment, on Dec. 13, the home shopping network said Thursday.

http://www.hsn.com/shop/diamonds-unleashed-by-kara-ross/13913?rid=4433&query=Kara%20Ross&isSuggested=False&

Diamonds Unleashed has partnered with She’s the First and Girls Who Code, and will donate all net profits from the sales of jewelry and products after expenses and has committed to make a minimum donation of $20,000 to each organization.

DIAMONDSUNLEASHED

HSN said in its press release:

The brand will be brought to life through a collection of jewelry and other products, a powerful network of influential ambassadors, and a platform of compelling content that is educational and engaging.

“I was so excited when Mindy approached me and wanted to be the first retailer to launch Diamonds Unleashed,” Ross said in a canned statement.

“The network of women that HSN provides access to is so exciting for a brand like ours as we are trying to create a shift in mindset,” Ross said. “I want to do for diamonds what Victoria’s Secret did for lingerie. When people think about diamonds they think about love and marriage. We’re redefining the act of engagement: that of engaging with your community and with the world at large.”

The jewelry will debut on HSN exclusively Dec. 13.

Ross designed the Diamonds Unleashed logo as a symbol of female empowerment.

It’s the “the shape of two diamonds, one elevating outside the other; those two shapes together form a heart,” the press release said. “The heart symbolizes the unifying philanthropic power of women helping women, to help create the next generation of strong female leaders.”

“Kara Ross is an amazingly talented designer and visionary woman who inspires everyone she meets,” HSN CEO Mindy Grossman said.

“We are thrilled to welcome the Diamonds Unleashed By Kara RossS collection to HSN’s fine jewelry portfolio. This transformational brand not only features beautiful product, but it represents a movement that empowers, educates and entertains women. Diamonds Unleashed aligns perfectly with HSN’s core values and I am honored to be one of its ambassadors.”

The collection for HSN features 28 pieces necklaces, rings, earrings and bracelets ranging in price from $129 to $1,399.

Each piece in the collection features genuine diamonds – diamonds that are ethically sourced from mines in Australia and Canada and manufactured to exceed minimum standards in: health, safety, the environment, human rights, quality management and financial capacity, as well as ethical and anti-corruption practices.

Cool.

For more information about Diamonds Unleashed and the support of these organizations, visit http://www.diamondsunleashed.org/charity-partners.

HSN Has Tough Third Quarter, With Sales Up 2 Percent To $590.6 Million

November 4, 2015

It was not happy time in St. Petersburg today when HSN released its third-quarter results.

The No. 2 home shopping network’s net sales rose only 2 percent, to $590.6 million, led by growth in electronics and culinary, “offset by home and jewelry,” the company said in a press release Wednesday.

Operating income was flat, at $56.2 million. Not good.

Digital sales increased 7 percent with penetration increasing 170 basis points to 40.5 percent. The return rate improved 80 basis points to 16.8 percent primarily due to changes in product mix. Units shipped increased 2 percent and average price point increased 1 percent.

Gross profit increased 1 percent to $204.5 million. Gross profit margin rate decreased 50 basis points to 34.6 percent primarily due to an increase in shipping promotions and changes in product mix. Operating expenses (excluding non-cash charges) increased 1 percent to $137.4 million.

HSN Inc. includes HSN, the home shopping channel that we just gave you the results for, and Cornerstone, a catalog company.

“We are not pleased with our third quarter results, which do not reflect the deliberate and strategic changes we have made over the past three years to strengthen our brands, create efficiencies and develop our talent to position ourselves for long-term growth,” HSN CEO Mindy Grossman said in a canned statement.

“While we believe that our opportunity to drive growth remains strong, certain product categories at HSN and specific brands within our Cornerstone portfolio weighed on our results in the quarter,” she said. “We have taken decisive actions to course correct and move the business forward while managing profitability.”

“Specifically, at HSN we have made changes in our merchandising organization to reignite our strategy of offering customers new and differentiated product in all categories,” Grossman said.

HSN INc.’s net sales, which include HSN and Cornerstone, increased 3 percent over the prior year to $864.9 million.

Cornerstone’s net sales increased 6 percent to $274.3 million, including 9 percent growth in digital sales.

“At Cornerstone, we are maximizing growth opportunities while rationalizing circulation and inventory to drive the business,” she said. “We continue to have strong digital performance at HSNi with digital sales growth of 8 percent and penetration of nearly 50 percent with mobile up 18 percent, now representing 37 percent of our total digital business.

“We remain confident that our fundamental strengths of customer focus and engagement, increasingly sophisticated digital platforms, and unique, immersive retail experiences and products position us well for long-term success in the evolving commerce landscape,” Grossman said.

HSN To Post Third-Quarter Results Nov. 4

October 15, 2015

HSN will report its third-quarter earnings Nov. 45 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.

There will 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 Nov. 18 by dialing 855-859-2056 or 404-537-3406, plus the pass code 57891125 and will also be hosted on the company’s website for a limited time.