HSNi Profit Dives 3.8 Percent in Second Quarter

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.

Net sales in the quarter, which ended on June 30, rose 6.4 percent to $767.2 million. HSNi's Cornerstone segment, comprising its catalogs and e-commerce sectors, provided the key boost with an 11 percent sales increase, with particular strength shown in the segment's home brands and in digital sales, which jumped 17 percent. The second quarter saw the repositioning of Cornerstone with the acquisition of Chasing Fireflies, a children's and family lifestyle apparel brand, and the divestiture of the Smith+Noble window-treatment business and The Territory Ahead, a casual apparel brand.

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.

HFN Staff | News & Commentary

HFN provides detailed information on the key home classifications: Housewares, Tabletop, Floor Covering & Rugs, Furniture, Home Textiles, Lighting, Home Decor, Mattresses & Bedding, Gifts, Major Appliances and Consumer Electronics as well as Business, Finance and Retail.


  • Adriana Hoyos Relaunches Brand at High Point Market

    Camera Icon   More Videos

Subscribe to
HFN Omnichannel
Receive the news you need to know about the trends in the industry delivered right to your inbox.

Current Issue

  • HFN cover for September 2017


    September 2017


    2017 State of the Industry Report
    Cautious Optimism, Mixed Results

    Many expected 2016 would be a banner year, but the political and economic climate softened consumer confidence. It was also a year consumers spent more lavishly on home remodeling rather than decorating.


    •  TJX Unveils First U.S. Homesense Store - In a time when retailers are reducing store counts, TJX continues to get physical.
    •   Ikea’s Fluid Spaces - The retailer’s new intros reflect multifunctional rooms.
    •  N.Y. Home Fashions Market Preview - Textile textures get soft and cozy, colors warmer.