HSNi Profit Dives 3.8 Percent in Second Quarter
August 1, 2012,
ST. PETERSBURG, Fla.-An uptick in expenses offset sales gains to reduce HSN Inc.'s second-quarter net income by 3.8 percent, to $30.7 million.
Operating expenses as a whole rose 7 percent in dollars and 15 basis points as a percentage of sales, to 29.7 percent. This included an 8.9 percent rise in selling and marketing expenses. HSNi also posted a loss from discontinued operations of $1.7 million, compared to a loss in this category last year of $590,000.
Sales in the HSN home-shopping segment rose 4 percent in the quarter. Digital sales, with an 8 percent increase, were the prime driver in this segment, helped along by sales in home-design, beauty and fashion products.
Mindy Grossman, HSNi CEO, said the second quarter brought "excellent progress" in the company's efforts to build its brand portfolio. "Our consistent execution enabled us to achieve sales growth of 6 percent, digital sales growth of 12 percent and customer file growth across the portfolio," Grossman said.
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