Robert T. Sutton named to head HSN - Home Shopping Network Inc - Specialty Store Focus

Discount Store News, April 15, 1991

Robert T. Sutton Named to Head HSN

ST. PETERSBURG, Fla. -- Home Shopping Network has named Robert T. Sutton as its president, filling the position left vacant since December 1990 when Lowell W. Paxson, co-founder of the teleretailer, left the company.

Sutton has been president and chief executive officer of the Media General Broadcast Group division of Media General, a newspaper and TV conglomerate.

Sutton's appointment came on the heels of HSN reporting an 8.2% increase in sales for the half year ended Feb. 28 to $559.4 million from $517.2 million, but a 42% drop in net income to $19.2 million from $33.1 million. Key to the decline was the second quarter results, which saw sales increase only 2.2% to $267.7 million from $261.9 million while earnings plunged 47.7% to $6.7 million from $12.8 million.

HSN's sales include revenues from handling and shipping costs, which are estimated to be about 12% of its volume. The electronic retailer treats the processing and delivery of merchandise as a profit center.

A company spokesman cited the Persian Gulf War as the cause of the poor second quarter results as cable TV viewers, in general, preferred to watch CNN's coverage of the fighting, rather than shop the electronic retailer. The sales decline was most evident when President Bush delivered major talks at the start of the fighting and when the land war began.