Posts Tagged ‘Rod Little’

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 Appoints Chief Financial Officer

November 29, 2016

HSN Inc. has hired an Elizabeth Arden Inc. and Procter & Gamble veteran, Rod Little, as its chief financial officer.

He will join the company Jan. 3, reporting to CEO Mindy Grossman. Little succeeds Judy Schmeling, who was named president of HSNi operating division Cornerstone Brands in August, in addition to her continuing role as COO of HSN Inc.

Schmeling will work closely with Little “to ensure a seamless transition,” according to the press release Monday.

Little’a resume includes stints as CFO for Elizabeth Arden as well as a variety of leadership positions with Procter & Gamble.

“Rod is an accomplished finance executive with significant public company and operational expertise in the consumer products industry,” Grossman said in a canned statement.

“We are absolutely thrilled to have someone with his background and proven experience join the HSNi leadership team. Rod is a focused, strategic and creative thinker — known as a motivator and collaborator. He has the unique combination of being both bold and thoughtful in thinking and action, and I look forward to working with him as we deliver long-term growth for the company.”

Little will oversee all financial management, including accounting, financial planning and analysis, internal audit, treasury, tax, investor relations and media affiliate relations.

“HSNi is a leader in direct to consumer retail, and I look forward to joining the talented executive team across its HSN and Cornerstone operating segments,” Little said in his canned statement, kissing up to his new employer.

“These are both exciting and challenging times in the retail industry, which present real opportunities for a company like HSNi, with strength in digital and e-commerce and its focus on delivering innovative, differentiated retail experiences. It’s clear to me that HSNi is committed to harnessing the power of its unique platform to maximize performance and profitability.”

Most recently, Little served as executive vice president and CFO of Elizabeth Arden, Inc., “where he was instrumental in a turnaround that restored revenue growth and profitability, ultimately resulting in that public company’s sale to Revlon Inc.,” according to the press release.

Prior to that, Little served as CFO for Procter & Gamble’s multi-billion dollar global salon professional division.

“While at P&G, he was hand-picked by the CFO and President to oversee the turnaround of the multi-billion dollar global salon business,” the press release said.

“He played a broad role, leading a finance team of professionals in more than 20 countries where he had end-to-end responsibility for strategy development, business planning, financial reporting, and product development through to sales and cash collection.”

Little holds a B.S. in Management from the U.S. Air Force Academy in Colorado Springs, Colo., and an MBA from the University of Pittsburgh.