Thursday May 1st, 2014 - 1:00PM
HSN reported results for the first quarter, ended March 31, 2014, for HSN, Inc. (HSNi) and its two operating segments, HSN and Cornerstone. HSNi’s overall net sales grew 1% over the prior year to $777.4 million. HSN’s overall net sales decreased 1% to $544.5 million; however, the company posted a digital sales increase of 5%. Cornerstone's net sales increased 5% to $232.9 million, including 6% growth in digital sales.
"Similar to the overall retail sector, our results were impacted in the first quarter partially due to severe weather across the country, and softness in women's apparel, particularly at Garnet Hill. At HSNi, we are seeing improved performance, as demand strengthened throughout March," said Mindy Grossman, CEO of HSN, Inc. "I believe our opportunity to drive growth remains intact and we are pleased with the areas of strength that we demonstrated during the quarter, including an increase in digital penetration of 220 basis points to 47%, mobile growth of 44% and reaching our highest customer levels to date."
HSNi's adjusted EBITDA decreased 11% to $59.8 million. HSN's Adjusted EBITDA was relatively consistent with the prior year at $59.1 million. Cornerstone's Adjusted EBITDA decreased to $0.6 million from $7.9 million in the prior year primarily due to unfavorable results in the apparel brands, particularly Garnet Hill.