Posts Tagged ‘Mindy Grossman’

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.

HSN Supports UNICEF With ‘Star Wars’ Event Monday

September 23, 2015

HSN’s philanthropic arm is partnering with Lucasfilm to support UNICEF by broadcasting a “Star Wars” edition of “The Monday Night Show with Adam Freeman” this Monday.

During the two-hour primetime special Ashley Eckstein, the voice of “Star Wars” character Ahsoka Tano and founder of the Her Universe sci-fi merchandise brand for female fans, will present exclusive items of “Star Wars” apparel to raise funds for the U.S. Fund for UNICEF.

Eckstein will appear on-air alongside HSN Inc. CEO Mindy Grossman and Caryl M. Stern, the President and CEO of the U.S. Fund for UNICEF.

During the event HSN will donate 20 percent of the purchase price for every item featured and sold during the special to the U.S. Fund for UNICEF. In addition to apparel, the selection of “Star Wars” products will include items like a Star Wars Walkie Talkie, Stormtrooper watch and Darth Vader cuff links.

“I recently returned from my second field visit to see UNICEF’s programs for children firsthand and was inspired by their work to make a difference in the lives of children,” Grossman said. “I am so proud of HSNi Cares, our partners and customers who support UNICEF’s work to make an impact on the lives of children around the world.”

HSNi Cares has started a campaign that runs through Sept. 30 across television, catalogs, digital and social channels, raising funds and awareness in support of UNICEF.

All eight HSNi brands – HSN, Frontgate, Grandin Road, Ballard Designs, Garnet Hill, TravelSmith, Improvements and Chasing Fireflies – have come together to fulfill HSNi Cares goal of empowering women and supporting families in times of need globally, through interactive digital activations and customer donations across their channels.

HSN Net Sales Increase 3 Percent, To $572.3 Million, In 2Q

August 7, 2015

HSN’s net sales increased 3 percent, to $572.3 million in the second quarter, with strong growth in apparel, accessories and electronics offset by decreases in jewelry (Oh no!) and home, the shopping network reported Thursday.

The No. 2 home shopping channel hit Wall Street’s projections for earning per share, but not the forecasts for net revenue, according to the Associated Press.

http://www.foxbusiness.com/markets/2015/08/06/hsn-meets-2q-earnings-expectations-misses-revenue-forecasts/

That compares to the 4 percent jump, to $1.4 billion, in the second quarter that QVC posted on Wednesday.

HSN’s digital sales were up 11 percent with penetration increasing 310 basis points to 40.3 percent. The return rate improved 70 basis points to 18 percent primarily due to changes in product mix. Units shipped increased 2 percent and average price point increased 1 percent.

Gross profit increased 7 percent to $209.3 million. Gross margin increased 130 basis points to 36.6 percent primarily due to favorable vendor settlements and lower inventory-related costs including inbound freight and duties.

HSN recorded $3 million for certain costs associated with the planned closure of one of its distribution centers as part of its supply-chain optimization initiative.

Excluding non-cash charges and the costs associated with the planned closure of the distribution center, operating expenses as a percentage of net sales increased 70 basis points to 24.7 percent primarily due to increases in bad debt expense and employee-related costs.

Adjusted EBITDA increased 9 percent to $68.2 million. Operating income increased 3 percent to $53.5 million.

The consolidated results for HSN Inc., which includes the HSN network and the Cornerstone unit, were that net sales rose 4 percent over the prior year to $885.6 million.

“Our ongoing focus on content-driven commerce continues to position us well for long-term growth,” HSN Inc. CEO Mindy Grossman said in a canned statement. “HSNi’s results in the quarter reflected strong top and bottom line performance, particularly on our digital and mobile platforms. We continue to advance our strategies to remain a leader in boundaryless retail.”

HSN Insiders Brand, Grossman Sell Stock

July 4, 2015

Several HSN honchos cashed in some of their stock recently, and we’d be buying a lot of Carole Brodie jewelry if we had the money they got in those transactions.

First, our buddy HSN President Bill Brand last week sold 3,000 shares for $211,410, according to the Insider Trading Report. The stock had been trading at $70.47 a share.

http://www.insidertradingreport.org/hsn-inc-hsni-files-form-4-insider-selling-william-c-brand-sells-3000-shares/629138/

And HSN CEO Mindy Grossman last month sold 78,894 shares for a tidy $5,384,516. Those shares were trading at $68.25 when she sold them.

HSN Posts 10 Percent Sales Jump In First Quarter, To $600 million

May 7, 2015

It looks like HSN enjoyed a good first quarter, with net sales rising 10 percent to $600.5 million, the home shopping network reported Wednesday.

But, dang it, there was sales growth in all divisions except our favorite category, jewelry. Hope that doesn’t mean that HSN will start limiting its offerings of shiny baubles!

The results include sales associated with a direct-response television marketing campaign that started during the fourth quarter and contributed to 2 percent of this growth. We don’t know anything about this direct-response campaign.

HSN’s digital sales increased 18 percent with penetration increasing 280 basis points to 40.7 percent. The return rate improved 60 basis points to 17.7 percent, mostly due to changes in product mix. Units shipped increased 8 percent and average price point increased 2 percent.

Gross profit increased 9 percent to $207.5 million. Gross margin decreased 40 basis points to 34.6 percent primarily due to an increase in inventory reserves.

Operating expense leverage (excluding non-cash charges) improved 60 basis points to 23.5 percent.

HSN Inc.’s net sales, which include the shopping channel and the Cornerstone unit, were up 8 percent over the prior year to $841.9 million. Cornerstone’s net sales increased 4 percent to $241.4 million, including 5 percent growth in digital sales.

HSNi’s adjusted EBITDA increased 22 percent to $73.2 million, while its adjusted EBITDA increased 12 percent to $66.2 million. Cornerstone’s adjusted EBITDA increased $6.3 million to $7 million primarily due to strong performance at Garnet Hill. HSNi’s operating income increased 36 percent to $57 million.

Adjusted earnings per share increased 26 percent to 63 cents compared to 50 cents in the prior year.

“Our performance in the quarter reinforces the experiential power of our content and our ability to create engagement across our platforms,” HSN Inc. CEO Mindy Grossman said.

“HSNi had net sales growth of 8 percent and Adjusted EBITDA growth of 22 percent,” she said. “These results demonstrate the continued execution of our strategy to drive commerce by creating personal connections with our customers and offering unique and compelling products. Once again, accelerated performance in digital was a key factor in our strong growth momentum with digital up 12 percent, representing half of our total business. Mobile sales grew 31 percent for the quarter, with penetration at 18 percent of total sales.”