Profile: HSN Inc (HSNI.OQ)
23 Jun 2017
HSN, Inc., incorporated on May 9, 2008, is an interactive multi-channel retailer. The Company markets and sells a range of third party and merchandise directly to consumers through various platforms, including television home shopping programing broadcast on the HSN television networks and other direct-response television marketing; catalogs, consisting of the Cornerstone portfolio of print catalogs, which includes, Ballard Designs, Frontgate, Garnet Hill, Grandin Road and Improvements; Websites, which consist primarily of HSN.com, joymangano.com and the five branded Websites operated by Cornerstone; mobile devices; retail and outlet stores, and wholesale distribution of certain products to other retailers. The Company operates through two segments: HSN and Cornerstone. HSN offerings consist of jewelry, fashion (apparel and accessories), beauty and health (including beauty, wellness and fitness), and home and other (including home, electronics, culinary and other). Merchandise offered by Cornerstone consists of home furnishings (including indoor/outdoor furniture, home decor, tabletop, textiles and other home related goods), and apparel and accessories.
The Company's HSN segment includes the HSN television networks; its related Website, HSN.com; its mobile applications, and various outlet stores and its wholesale distribution of certain products to other retailers. The HSN television network broadcasts customer interactive home shopping programing around the clock. The Company's HSN2 is a network that distributes taped programing. Programing is divided into separately televised segments, most of which have hosts who present and convey information regarding featured products, sometimes with the assistance of a celebrity, industry expert, representative from the product vendor or someone retained to aid in the sale of the products. HSN also produces entertainment, such as live concerts to entertain and engage with customers and promote certain products. HSN.com is a business-to-consumer digital commerce site that sells all of the merchandise offered on the HSN television networks, together with complementary products and select merchandise sold on HSN.com. HSN provides seamless experiences across all digital platforms and optimizes each platform by delivering content both at HSN.com and on mobile phones and tablets, including the iPad, iPhone, Android and Windows devices. HSN produces both live and recorded programing for the HSN television network primarily from its studios in St. Petersburg, Florida, and distributes this programing by means of satellite uplink facilities, which it owns and operates, to a satellite transponder. As of December 31, 2016, HSN's live broadcast reached approximately 91.4 million and 93.7 million homes of the approximately 114.7 million and 113.3 million homes, respectively, in the United States with a television set.
The Company has distribution and affiliation agreements with cable television, Telco and DBS operators to carry its television networks, as well as to promote the networks by carrying related commercials and distributing related marketing materials to their respective subscriber bases. Its pay television operators include Comcast, AT&T/DirecTV, Charter Communications and Echostar/DISH. As of December 31, 2016, its subsidiary, Ventana Television, Inc., also owned 25 broadcast television stations that carry the HSN television networks on a full-time basis. HSN also includes HSN.com, a transactional e-commerce site that sells merchandise offered on the HSN television networks, as well as select merchandise. HSN.com provides customers with additional content to support HSN television programing. HSN has applications for the iPhone, iPad and Android and Windows devices. These applications allow users to order merchandise, stream live video from HSN and watch previously-aired content from the network's video library while simultaneously browsing related products. These applications also allow customers to create their own personalized channels, select their favorite brands or categories of merchandise and compile videos focused on these preferences.
The Company's Cornerstone segment consists of a portfolio of home and apparel brands in the direct marketing and retail space, including catalog distribution and related Websites. Its home brands comprise Frontgate, Ballard Designs, Grandin Road and Improvements. Garnet Hill focuses on apparel and accessories and is categorized by HSNi as an apparel brand. It had 16 retail and outlet stores located throughout the United States as of December 31, 2016. Frontgate features indoor (including bed, bath, kitchen, dining and living room) and outdoor (including patio, garden and pool) furnishings and accessories. Ballard Designs consists of bed, bath, dining, outdoor and office furnishings and accessories, as well as rugs, shelving and architectural accents for the home. Grandin Road offers products ranging from occasional furniture, accessories, holiday decor and outdoor furniture, and Improvements features home, patio and outdoor products. Garnet Hill offers apparel and accessories for women and children, as well as bed and bath furnishings and soft goods. Cornerstone brands generally incorporate on-site photography and real-life settings, coupled with related editorial content describing the merchandise and depicting situations in which it may be used. Cornerstone also operates Websites for its brands, such as Frontgate.com, BallardDesigns.com, GarnetHill.com, GrandinRoad.com and Improvementscatalog.com. Additional content provided by these Websites include decorating tips, measuring information, online design centers, gift registries and travel centers, as well as a feature that allows customers to browse the related catalog online.
The Company competes with QVC and EVINE.
1 HSN Drive
ST. PETERSBURG FL 33729