HSN Inc.’s Cornerstone Brands served as the cornerstone of a very successful second quarter for the multi-channel retailer.  The catalog-focused division of the company, which comprises leading home and apparel brands such as Ballard Design, Frontgate, Garnet Hill and Grandin Road, turned in an especially strong quarter with sales results that — if annualized — would match their best-ever past performance.  Net sales for Cornerstone increased 20% to $223.6 million compared to the prior year and internet sales penetration increased 140 basis points to represent 55.4% of Cornerstone’s net sales.  The sales growth came in large measure from an increase in demand for luxury and outdoor products, as well as from investments in catalog circulation.  Gross profit increased 22% to $96.5 million, while gross profit margin improved 50 basis points to 43.1% from 42.6% in the prior year, and adjusted EBITDA increased 277% to $18.5 million from $4.9 million in the prior year. Continue reading »