HSN Net Jumps 40.8 Percent in Q2; Home Products Post Growth
August 1, 2013,
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.