HSN Net Jumps 40.8 Percent in Q2; Home Products Post Growth
ST. PETERSBURG, Fla.-An increase in sales and a favorable expense picture pushed HSN Inc.'s net income steeply northward in its second quarter by 40.8 percent, to $43.3 million.
Net sales in the quarter, which ended on June 30, rose 5.9 percent to $812.6 million. Sales of home products helped fuel both the HSN and Cornerstone segments, along with double-digit increases in digital sales for both segments. The HSN segment posted a 5 percent sales gain, while Cornerstone's sales rose 8 percent.
Selling, general and administrative expenses rose 4.1 percent in dollars but shed 51 basis points as a percentage of sales, to 29.2 percent. Interest expense plummeted 78.8 percent. Gross margin was down 24 basis points to 38 percent.
Mindy Grossman, HSN's CEO, said, "Our strong financial performance during the second quarter is a result of the uniqueness of our customer experiences, the power of our digital platforms and the quality of our brands and products."