HSN Sees Second Quarter Declines

NORTH AMERICA–Live content retailer HSN has reported a 4 percent decrease in net sales to $821.4 million for the second quarter of 2017.

April 6, 2018

Alternatively, net income for the retailer increased 24 percent compared to the year prior.

Excluding the divested businesses, the company reported that net sales decreased 2 percent.

However, net income increased 24 percent to $32.8 million and diluted earnings per share were $0.62 compared to $0.50 in 2016. The current year results also include roughly $5.3 million in transaction costs related to the company’s recent merger agreement with Liberty Interactive, which owns fellow TV retailer QVC.

The company’s gross profit rate remained virtually unchanged, decreasing to 36.1 percent from 36.5 percent the year prior.

"We continue to focus on building our proprietary product pipeline which we believe will ultimately lead to growth in the business,” says Rod Little, chief financial officer, HSNi. “The continued strength of digital sales, and mobile sales in particular, has been very encouraging with digital sales now representing 55 percent of our total

revenue. Mobile, which we see as our flagship, continues to be our fastest growing sales channel and a source of new customer acquisition.”