ST. PETERSBURG, Fla.–Even though net sales fell 5 percent, HSN enjoyed a 24 percent increase in its net income in the third quarter, to $18.6 million.
Net sales finished the third quarter at $641.2 million, with most of the decline coming from the company’s Cornerstone unit, whose sales fell 19 percent. The much improved bottom line resulted from “strict financial and operational discipline to maximize results,” said Mindy Grossman, HSN’s chief executive officer. The company’s operating results benefited from a reduction in operating expenses of $22.5 million in the quarter, which included $12.6 million in non-cash charges.
Grossman also noted that unit sales rose 6 percent in the quarter—stemming from “unique interactive experiences, differentiated brands and products, and a continued focus on customer service,” Grossman said.