HSN’s Sales Rise Just 2 Percent, To $550.1 Million In First Quarter

HSN’s sales saw a 2 percent uptick in the first quarter, to $550.1 million, versus the year-ago period, the home shopping network reported Thursday.

Sales grew in apparel & accessories, beauty and home design, but that was offset by lower sales in jewelry and electronics, HSN said. The average price point decreased 9 percent, the units shipped increased 12 percent and the return rate increased 70 basis points to 20 percent primarily due to changes in product mix, according to HSN.


Digital sales increased 4 percent with penetration increasing 80 basis points to 35.7 percent. 

However, digital sales “were tempered by the launch of the digital site redesign across all HSN digital platforms that occurred early in the quarter,” the company said.

In other words, we hated the new website!

“In addition, last year’s results included one extra day versus the current year because of leap year,” HSN said.

Gross profit increased 2 percent to $192.4 million and gross margin increased 20 basis points to 35 percent. The margin was favorably impacted by the product mix shift, partially offset by an increase in shipping and handling promotions.

Adjusted EBITDA increased 3 percent to $58.9 million compared to $57.3 million in the prior year. Operating income increased 2 percent to $48.6 million compared to $47.5 million in the prior year.

Sales for HSN Inc., which includes both the network HSN and the Cornerstone unit, increased 7 percent, to $772.7 million.

“I’m pleased with HSNi’s first quarter performance and the progress we made in creating a powerful and differentiated retail experience,” HSN CEO Mindy Grossman said in a canned statement.

“Across HSNi, we continue to reach and engage customers through content-rich, immersive experiences on multiple digital platforms,” she said.

“These efforts contributed to sales growth of 5 percent and digital sales growth of 10 percent. We also had EPS (earnings per share) growth of 24 percent and returned value to shareholders through our share repurchase and cash dividend programs that included purchasing approximately 1.2 million shares during the quarter.”

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3 Responses to “HSN’s Sales Rise Just 2 Percent, To $550.1 Million In First Quarter”

  1. clarie Says:

    With “stellar” results like these it is no wonder why they pay Mindy the millions they do, guess she took he eye off the ball why working on her own personal PR doing those silly reality shows. Now let’s see what “Magic Mike” does at QVC, with his $20 million plus pay check guess he will do better…

  2. Susan Says:

    At least HSN is trying to differentiate their product mix with more and more home decor and other offerings and that part of their strategy seems to be working. Both HSN and QVC needs to stop with the repetitive electronic shows which DO NOT seem to be selling well!!!

    And to claire, there is nothing “magic” about Mike at QVC the product offering is becoming more and more limited some customers have counted 15 which they show over and over and over ad nauseum. So many QVC long time customers have stopped watching and buying. QVC seems to be relying on Italy and their new China market for profit! Can’t wait to see how the Q does….I think their results will bear what we customers are saying, although Claire Watts and Mike Geoge continue to ignore her customers!

    Hats off the HSN for at least offering some product mix and caring about customer retention!

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