HSNi Net Rises 3 Percent in Fourth Quarter
ST. PETERSBURG, Fla.-With the company's Cornerstone unit driving sales gains, fourth-quarter net income for HSNi rose 3 percent to $77.4 million.
The Cornerstone business posted a net sales gain of 23 percent in the quarter, helping to boost HSNi's overall net sales by 9 percent to $915.2 million. Mindy Grossman, HSNi's chief executive officer, said Cornerstone's Frontgate, Ballard Designs and Garnet Hill brands were particularly strong performers in the quarter. Net sales in the HSN segment rose 4 percent, helped by a 9 percent pickup in sales at hsn.com.
HSNi's operating expenses rose 6 percent in dollars in the quarter but declined by 89 basis points as a percentage of sales, to 26.1 percent. Gross margin fell 137 basis points to 34.5 percent.