Make us your home page
Instagram

On comeback trail, HSN looks for acquisitions

The comeback of HSN Inc. has gone on long enough, and strong enough, for the $3 billion St. Petersburg TV e-commerce retailer to weigh making its first acquisitions in five years.

The network has said little about its intentions since putting a former Wall Street investment banker on the full-time payroll last month. But with $344 million in cash, the company is revisiting where to start pouring profits, including share repurchases, dividends or buying complementary businesses.

Network executives on Wednesday told analysts their interest lies in acquisitions that bolster their core TV shopping network and possibly rebuild its once extensive international operation that was abandoned a decade ago.

"We've evaluated several acquisitions, but so far none of them made sense," said Mindy Grossman, chief executive officer who steered the network through rocky times including a fragile initial public offering weeks before the stock market and consumer spending collapses of 2008.

News that the company is looking at acquisitions is one more sign of how Grossman plans to grow what's now a healthy business. Her moves have established HSN's fashion credibility with designers and customers. She tried first-ever promotional deals with celebrities ranging from Mariah Carey to Sean Combs, film studios and most recently packaged goods makers like Kraft Foods.

Meantime, HSN's stock price Monday hit a 52-week high of $35.43 a share. It closed Wednesday at $34.69, up 51 cents. Wall Street values the company at more than $2 billion, four times what it traded for in 2008.

Securities analysts with Piper Jaffray estimate HSN earnings will grow 15 to 20 percent annually "for the foreseeable future." That's enough to support a target stock price of $45.

Grossman's comments came as HSN reported a 14 percent increase in profits and 6 percent increase in sales during the quarter ended March 31.

Net income increased to $20 million, or 34 cents a share, up from $18 million, or 30 cents a share, a year ago. Revenue hit $724 million, up from $683 million. The company's sales increase was driven by a 20 percent improvement at the Cornerstone catalog unit while sales at the TV shopping network rose 1 percent.

Mark Albright can be reached at albright@sptimes.com or (727) 893-8252.

On comeback trail, HSN looks for acquisitions 05/04/11 [Last modified: Wednesday, May 4, 2011 7:30pm]
Photo reprints | Article reprints

© 2017 Tampa Bay Times

    

Join the discussion: Click to view comments, add yours

Loading...
  1. Expanded Belle Parc RV Resort lures travelers with plenty of amenities

    Business

    BROOKSVILLE — Imagine mid-mansion, upscale-enclave living. On wheels. The outcome is Belle Parc, an upwardly mobile, even luxury, RV retreat just north of Brooksville that opened Jan. 1 after two years undergoing expansion, uplift and amenity enrichment.

    A new welcome center is under construction, rear, at Belle Parc RV Resort, where lake sites are being completed, bringing the resort's capacity to 275 spacious park-and-stay slots.
 [Photo by Beth N. Gray]
  2. Memorial Day sales not enough to draw shoppers to Tampa Bay malls

    Retail

    TAMPA — Memorial Day sales at Tampa Bay area malls were not enough to compete with the beach and backyard barbecues this holiday weekend.

    Memorial Day sales weren't enough to draw shoppers to Tampa Bay area malls over the long weekend. 
[JUSTINE GRIFFIN | Times]
  3. Austin software company acquires second Tampa business

    Corporate

    Austin, Tex.-based Asure Software acquired Tampa's Compass HRM Inc. late last week for $6 million. Compass focuses on HR and payroll.

    [Company photo]
  4. Hackers hide cyberattacks in social media posts

    Business

    SAN FRANCISCO — It took only one attempt for Russian hackers to make their way into the computer of a Pentagon official. But the attack didn't come through an email or a file buried within a seemingly innocuous document.

    Jay Kaplan and Mark Kuhr, former NSA employees and co-founders of Synack, a cybersecurity company, in their office in Palo Alto, Calif., in 2013. While last year's hacking of senior Democratic Party officials raised awareness of the damage caused if just a handful of employees click on the wrong emails, few people realize that a message on Twitter or Facebook could give an attacker similar access to their system. 
[New York Times file photo]
  5. Big rents and changing tastes drive dives off St. Pete's 600 block

    Music & Concerts

    ST. PETERSBURG — Kendra Marolf was behind the lobby bar of the State Theatre, pouring vodka sodas for a weeknight crowd packed tight for Bishop Briggs, the latest alternative artist to sell out her club.

    Sam Picciano, 25, left, of Tampa and Molly Cord 24, Palm Harbor shop for record albums for a friend at Daddy Kool Records located on the 600 block of Central Avenue in St. Petersburg, Florida on Saturday, May 20, 2017. OCTAVIO JONES   |   Times