Friday February 21st, 2014 - 10:53AM
HSN, Inc. has reported results for its fourth quarter ended December 31, 2013, for its two operating segments, HSN and Cornerstone. Overall, HSNi's net sales grew 4% over the prior year to $1.0 billion. For the full 2013 fiscal year, the company reported that annual net sales grew 4% to $3.4 billion.
Contributing the the Q4 growth was HSN's net sales which increased 2% to $697.4 million, including 7% growth in digital sales, and Cornerstone's net sales which increased 8% to $322.4 million, including 9% growth in digital sales. For the full fiscal year, HSN's net sales increased 2% to $2.3 billion, including 7% growth in digital sales. Cornerstone's net sales increased 9% to $1.1 billion, including 11% growth in digital sales.
Additionally, HSNi announced a 39% increase in its quarterly dividend in November from $0.18 to $0.25 per share and repurchased a total of 2.7 million shares during 2013 at a cost of $146.9 million, or an average cost of $53.67 per share. Since initiation of the capital return plan in September 2011 through February 19, 2014, HSNi has returned more than $478 million to shareholders through share repurchases and dividends.
"Throughout 2013, we successfully managed the Company to position us for long-term growth. We kept our focus on the customer, emphasized our unique content and proprietary products, strengthened our digital platform, further leveraged opportunities and synergies across the HSN and Cornerstone brands and returned value to our shareholders by delivering nearly $200M through share repurchases and cash dividends," said Mindy Grossman, CEO of HSN, Inc. "During the fourth quarter, we achieved 4% sales growth and a digital sales increase of 8%, including mobile growth of 59%. Adjusted EPS growth for the quarter and year were 11% and 19%, respectively. We also ended 2013 with record customer levels at both HSN and Cornerstone."
For HSN, sales grew in health, beauty and apparel & accessories, offset by lower sales in jewelry, culinary and electronics. Net sales were favorably impacted by lower than historical returns in many product categories. The average price point increased 1% while the units shipped remained unchanged.
For Cornerstone, the increase in net sales was driven by sales growth in the home brands, the company reported.