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HSNi Reports 4Q Revenue +7% But Lower Jewelry Sales

Feb 22, 2013 10:22 AM   By Jeff Miller
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RAPAPORT... HSNi Inc.'s sales for the fourth quarter that ended on December 31, rose 6.6 percent year on year to $982.9 million, while cost of sales jumped 7.5 percent to $645 million. Profit surged 16 percent to $56.1 million.

The HSN segment, which includes jewelry, reported that net sales rose 7 percent year on year to $683.8 million. Digital sales grew 11 percent with penetration increasing 140 basis points to 37.6 percent. HSN's sales were strong in the  electronics, home design, household and beauty categories, though the gains were partially offset by lower sales in jewelry, which is a trend the company has reported for numerous quarters. Shipping and handling revenue decreased 10 percent.

The average price point for the HSN segment decreased 3 percent, the units shipped increased 10 percent and the return rate decreased 90 basis points to 18.6 percent. Gross profit increased 6 percent to $224.8 million during the quarter but gross profit margin decreased 30 basis points to 32.9 percent. HSN reported that the margin decline was largely due to the increase in shipping and handling promotions, but that was partially offset by increases in product margins.

As of December 31,  HSNi held cash and cash equivalent of $222.1 million compared with $381.8 million one year earlier.  Net cash provided by operating activities in the year fell to $147.4 million from $165.4 million.

For the year that ended on December 31, HSNi’s net sales were up 5 percent annually to $2.27 billion, while the HSN division’s gross profit grew by 6 percent to $786.7 million. Income from continuing operations was up 7 percent to $136.5 million.

Tags: HSN, hsni, Jeff Miller, Jewelry, sales
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