HSNi Net Falls 10 Percent in Q3
ST. PETERSBURG, Fla.--Net income for multichannel retail company HSNi, parent of HSN and the Cornerstone catalog division, totaled $14.9 million in the third quarter ended Sept. 30, 2010 on a non-adjusted basis, down 10 percent from the third quarter of last year.
Included in this bottom-line figure were a $2.5 million sales provision for an upcoming voluntary product recall at one of the company's Cornerstone catalog brands, and costs related to a $2.5 million legal settlement. Factoring these out, net income was $18.7 million, up 1 percent from last year.
Net sales overall for HSNi were $708.4 million in the third quarter, an increase of 10 percent. This included a 23 percent sales gain from the Cornerstone sector and a 15 percent pickup in sales from HSNi's Internet operation. Net sales from the HSN portion rose 6 percent.
"We undertook key strategic initiatives this quarter that were focused on customer engagement by creating content-immersive experiences and leveraging our unique multichannel platform," said Mindy Grossman, chief executive officer of HSNi.