Mr. Marangi: Yes, I think the spin-off was good for investors. It has created strategic opportunities for HSN, focused both management and investors on the upside of HSN, and eliminated for some people questions about capital allocation at the holding company level.
TWST: Excluding Cornerstone, HSN's sales have barely declined in a difficult economy. In your view, what have they done right that's allowed them to maintain revenues while so many other companies are struggling?
Mr. Marangi: The video-retailing model gives them certain advantages over traditional retail, in being able to change their marketing and merchandising on a dime. Mindy Grossman and her team have gotten the basics right. They've improved their merchandising, they've improved their customer care, their marketing and, with the exception of the cyclical downturn, they would have been doing much better.
Tickers included in this excerpt: LINTA, WTV
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