Dive Brief:
-
HSNi announced Wednesday that Mindy Grossman will step down as CEO May 24 and the company has begun a search for her replacement. Her duties will be taken over by an office of the chief executive, which will include CFO Rod R. Little, CMO William C. Brand and COO Judy A. Schmelling, according to a company press release.
-
Grossman, who has led HSNi since 2008 and shepherded it through a turnaround and a public offering, is leaving to take the chief executive spot at Weight Watchers International in July.
-
HSNi also released preliminary figures for its first quarter, noting that Q1 net sales fell 4% to $785.4 million, compared to $816.8 million in the first quarter last year; the decrease was 1% excluding the impact of divested businesses and the leap year. In line with the company's plan, diluted and adjusted earnings were 40 cents per share compared to 54 cents a year ago.
Dive Insight:
Under Grossman, HSNi weathered the encroachment of e-commerce into its $4 billion direct-to-consumer model. Though its television broadcast operations remain a lucrative sales channel, more than half its sales last year were online, the company said in February.
Grossman is an accomplished and highly sought after retail executive, who in January became the chairman of the National Retail Federation board of directors. J.C. Penney in 2014 tried to lure Grossman to lead its own turnaround, but those talks broke down at a late stage over terms. Around that time, Target and Avon were also said to be considering Grossman as they scrambled to find new leadership. Weight Watchers, which is now part-owned by Oprah Winfrey, apparently found a way to seal the deal.
"I'm extremely proud of what we've accomplished at HSNi and believe that the company is well positioned for the future. It has been an honor to work with such an inspired team over the past decade as we transformed the business to lead the future of boundaryless retail,” Grossman said in a statement. “With a focus on customer engagement, digital innovation, product excellence and immersive and community-oriented content, HSNi will be able to thrive in the modern retail environment, where consumers are looking for experiences and meaning.”
