ST. PETERSBURG, Fla.-Stronger sales and margins fueled HSNi, the parent company of HSN and Cornerstone, to increases of 13 percent in fourth-quarter net income, to $46.5 million, and 25 percent for the fiscal year, to $123.1 million.
Net sales for the quarter, which ended on Dec. 31, rose 4 percent to $955 million, including an 8 percent increase in the company’s digital sales and a 13 percent gain for Cornerstone. For the fiscal year, sales were up 6 percent to $3.2 billion, with a 9 percent jump in digital sales and a 15 percent increase for Cornerstone.
Mindy Grossman, HSNi’s CEO, attributed the sales gains to “maintaining our focus on expanding our digital presence, deepening customer engagement and emphasizing customer acquisition and retention.”
Gross margin for the quarter picked up 72 basis points to 35.3 percent. Operating expenses increased 11 percent in dollars and 66 basis points as a percentage of sales, to 10.9 percent.
“HSN ended 2011 with its largest customer file growth in four years, and Cornerstone’s 12-month house file was at record levels for Frontgate, Ballard Designs and Garnet Hill,” Grossman said. “HSNi’s digital growth of 13 percent for the quarter resulted in our highest digital penetration to date of 45 percent.”