HSN Q1 net income drops
St. Petersburg, Fla. – Net income declined at HSN Inc. during the first quarter of fiscal 2014 even as sales slightly improved compared to the same period a year earlier. Net income dropped 23% to $24.18 million from $31.54 million.
Net sales climbed 1% to $772.42 million from $772.65 million. A slight decline in average price point, as well as a higher tax rate and increased cost of sales, helped push HSN’s net income down. Mindy Grossman, CEO of HSN, Inc., also cited severe weather as a negative financial factor in the quarter.
"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,” said Grossman. “At HSNi, we are seeing improved performance, as demand strengthened throughout March. 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."
Hulu and Pizza Hut teaming up for interactive ads
New York — Online streaming video service Hulu will display interactive ads from Pizza Hut that will allow viewers to place orders on their computers or other devices right in the middle of the commercial.
Consumers will be able to place an order for pickup or delivery during the commercial, and then resume watching wherever they left off, according to the Washington Post. The ads will be shown on all platforms: desktop, mobile and internet-connected TV.
The Pizza Hut ads will debut this summer.
Sally Beauty Q2 net earnings drop; names new COO
Denton, Texas – Sally Beauty Holdings reported declining net earnings in the second quarter of fiscal 2014 compared to the second quarter of the previous fiscal year. Net income fell 9.9% to $58.9 million, from $64.89 million.
Net sales fared better, rising 2.4% to $919.47 million from $898.24 million. Same-store sales grew 1%. Higher selling, general and administrative expenses, as well as charges related to a previously disclosed data security breach, impacted net earnings. Sally Beauty also cited weather as negatively impacting sales.
“Overall performance was solid with positive consolidated same store sales growth of 1%, sales growth of 2.4% and 10 bps of gross margin expansion,” said Gary Winterhalter, chairman, president and CEO. “Extremely unfavorable weather in the U.S. resulted in 5,426 store days closed in the fiscal 2014 second quarter versus 1,328 in the prior year, resulting in lower traffic and sales growth in the U.S. Sally and CosmoProf stores. The good news is that we saw positive traffic performance in the regions that were not materially impacted by store closures which gives me confidence that we are on the right track to improve retail traffic in the Sally U.S. stores.”
In addition, Sally Beauty named Christian A. Brickman, 49 as the company’s new president and COO effective June 2, 2014. At the request of the board, Gary Winterhalter, the company’s current chairman, CEO and president, will continue his current roles as chairman and CEO through April 30, 2015 or another date as the board may determine, and will to facilitate a transition of the CEO post to Brickman during this period.