HSN Ends Fourth Quarter With $2.15 Billion Loss

TV shopping/catalog merchant HSN reported a loss of $2.15 billion for fourth quarter ended Dec. 31, 2008. For the same period last year, the company recorded net income of $73.1 million.

Sales at the HSN home shopping channel fell 4%, to $545.9 million. Sales in the Cornerstone catalog/Internet segment, includes the Frontgate, Ballard Designs, Garnet Hill, Grandin Road, Smith+Noble, The Territory Ahead, TravelSmith and Improvements catalogs, sank 25%, to $232.6 million, for the quarter, primarily due to diminished consumer demand for home furnishings and apparel. For the full year, Cornerstone’s sales decreased 15%, to $866.7 million, from $1.0 billion in 2007.

To cut costs during the quarter, the company eliminated 250 positions, renegotiated its print, paper and freight contracts, and made sweeping reductions in travel expenses, outside fees and other costs.

For the year, HSN reported a loss of $2.4 billion. Consolidated sales of $2.8 billion fell 3% from the prior year. The HSN division increased annual sales by 3%, to $1.96 billion, while Cornerstone sales fell 15%, to $867 million. Annual catalog circulation dropped 19%, from nearly $401 million to $324 million.

Partner Content

The Gift of Wow: Preparing your store for the holiday season - Netsuite
Being prepared for the holiday rush used to mean stocking shelves and making sure your associates were ready for the long hours. But the digital revolution has changed everything, most importantly, customer expectations. Retailers with a physical store presence should be asking themselves—what am I doing to wow the customer?
3 Critical Components to Achieving the Perfect Order - NetSuite
Explore the 3 critical components to delivering the perfect order.
Streamlining Unified Commerce Complexity - NetSuite
Explore how consolidating multiple systems through a cloud-based commerce platform provides a seamless experience for both you, and your customer.
Strategies for Maximizing Mobile Point-of-Sale Technology - NetSuite
Learn the top five innovative ways to utilize your mobile POS technology to drive customer engagement, increase sales and elevate your brand.