Online accounts for more than half of HSN’s sales
February 26, 2016 11:49 AM
Mobile sales make up a growing share of digital sales at HSN Inc., and digital accounted for more than half of all sales for the first time last year, the TV, web and mobile retailer reported this week.
“We have made progress in certain key areas, including optimizing our sophisticated digital platforms,” CEO Mindy Grossman says. “For the first time, HSNi’s digital penetration exceeded half our sales at 52%, with digital reaching nearly $2 billion in annual sales. Additionally, mobile now represents nearly 40% of total digital sales.”
Grossman attributed a slight Q4 sales decline to heavy price discounting, according to a transcript of HSN’s year-end earnings call from SeekingAlpha.com.
For the year ended Dec. 31, HSN, No. 25 in the Internet Retailer 2015 Top 500, reported:
- Total sales for HSN Inc. of $3.691 billion, up 2.9% from $3.588 billion in fiscal 2014.
- Online sales for HSN Inc., which it terms digital sales and include sales by its HSN and Cornerstone Brands units, accounted for 52% of sales. Based on that metric, web sales were $1.92 billion, up by 1.1% from $1.90 billion.
- Mobile revenue increased by 11% and accounted for 40% of digital sales, or $768 million.
- Net income of $169.2 million, down 2.2% from $173.0 million in the prior year.
- Total HSN segment sales of $2.542 billion, up 2.7% from $2.476 billion.
- Online sales for the HSN segment made up 41.4% of total sales, or $1.53 billion, up 6% from $1.44 billion.
- Mobile sales grew 11% and accounted for 21% of HSN sales, or $533.8 million.
- Total Cornerstone sales of $1.149 billion, up by 3.3% from $1.112 billion.
- Online sales for the Cornerstone Brands segment, which includes store and web retailers retailer Chasing Fireflies (children’s apparel) and Ballard Designs (home furnishings) and e-retailer Garnet Hill (apparel and home décor), accounted for 69% of total segment sales, or $792.8 million, up by 6.0% from $747.9 million.
- Mobile sales accounted for 19% of Cornerstone sales, or $218.3 million.
For the fourth quarter, HSN reported:
- Total HSN Inc. sales of $1.098 billion, down 1.8% from $1.118 billion in the same quarter of 2014.
- Overall online sales of $568.7 million, up by 1.0% from $563.1 million in Q4 2014.
- Mobile sales increased 11% and represented 20%, or $219.6 million of total sales.
- HSN Inc. net income of $59.7 million, down 12.6% from $68.3 million in Q4 2014.
- Total sales for HSN of $778.7 million, down 2.3% from $796.8 million.
- The web accounted for 43.3% of HSN sales, or $337.2 million, up by 0.1% from $337.0 million.
- Cornerstone total sales of $319.5 million, down 0.5% from $321.1 million.
- The web accounted for 71.9% of total Cornerstone sales for the quarter, or $229.7 million, up 1.9% from $225.4 million.
- Mobile sales accounted for 19% of overall Cornerstone revenue, or $60.7 million.
Ryan Ross, HSN Inc.’s executive vice president of digital commerce, also was made head of marketing and creative, Grossman said on the earnings call.