HSN Inc. reported a 6 percent year on year increase in revenue at $3.2 billion and profit rose 24 percent to $123 million for the fiscal year that ended on December 31, 2011. HSN’s net sales increased 2 percent to $2.2 billion, while Cornerstone’s net sales rose 15 percent to $1 billion.
During the year, the average price point for HSN rose 3 percent to $62.79 while the number of units shipped rose 2 percent to 41.3 million. HSN’s gross profit margin improved 80 basis points to 34.3 percent. Returns during the year increased 110 basis points though, to 20 percent.
“HSNi’s positive performance for the quarter and the year was a result of maintaining our focus on expanding our digital presence, deepening customer engagement and emphasizing customer acquisition and retention,” said Mindy Grossman, the chief executive of HSN Inc. “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. HSNi’s digital growth of 13 percent for the quarter resulted in our highest digital penetration to date of 45 percent.
“We also implemented our capital return plan for shareholders in the fourth quarter and have purchased over 14 percent of the authorized amount to date, in addition to paying out our first quarterly dividend. These efforts reflect our ongoing commitment to drive shareholder value,” Grossman said.