HSNi Net Falls 27.2 Percent in 3Q
November 1, 2012,
ST. PETERSBURG, Fla.-An $18.3 million charge for a loss on extinguishment of debt reduced HSNi's third-quarter net income by 27.2 percent, to $17.7 million.
Gross margin rose 67 points to 36.7 percent as well. Selling, general and administrative expenses increased 11 percent in dollars and 103 basis points as a percentage of sales, to 28.1 percent. Along with the charge for debt extinguishment, HSNi posted an increase of 180.1 percent in "other" expenses.
Focusing on the sales gain, Mindy Grossman, HSNi's CEO, said it was the result of "the sustained effectiveness of our overall strategy of creating immersive experiences, offering differentiated products and leveraging technology to build relationships, not just transactions."