HSNi Net More Than Doubles in Q3
November 6, 2013,
ST. PETERSBURG, Fla.-Effective controls on expenses enabled HSNi to post a 137.8 percent gain in second-quarter net income, to $42.1 million.
Selling, marketing, general and administrative expenses were down 4.2 percent in dollars and 191 basis points as a percentage of sales, to 27.2 percent. In addition, interest expense fell 56.9 percent in the quarter, which ended on Sept. 30.
Net sales edged up 2.6 percent to $789.9 million. HSNi's Cornerstone segment reported an 8 percent gain in sales, to $260.3 million, largely from sales growth from its home brands and from a 10 percent increase in digital sales. The HSN segment's sales were up 0.2 percent, with growth seen in home design and household products, and a favorable mix shift to categories with historically lower return rates.
Citing HSNi's "powerful and diverse portfolio of brands and products," Mindy Grossman, the company's CEO, said the third quarter brought "record customer levels and HSNi, an increase in digital penetration of 230 basis points--including strong growth in mobile, which now represents 12 percent of our business--and adjusted EPS (earnings per share) growth of 19 percent."