Digital Sales Keep HSN On Track In Q2

For the three months ended June 30, 2015, HSN posted net income of $41.6 million, or $0.78 per share, compared with a net income of $40.9 million, and earnings per share of $0.76 in the prior second quarter. 

The company incurred costs of $3 million associated with the planned closure of one of its distribution centers as part of its supply chain optimization initiative, the company said. 

Earnings, adjusted for non-recurring costs, were 81 cents per share. According to reports, the results met Wall Street expectations. The average estimate of four analysts surveyed by Zacks Investment Research was also for earnings of $0.81 per share.

Net sales grew 4% to $885.6 million versus $855.2 million in the year-prior quarter while operating income was $70.7 million versus $67.4 million in the 2014 period, HSN reported. HSN's net sales increased 3% to $572.3 million with strong sales growth in apparel & accessories and electronics, offset by decreases in jewelry and home. Cornerstone's net sales increased 5% to $313.3 million due to sales growth in the home brands. 

Digital sales penetration for HSNi climbed to 49.9%, up from 46.6% in the same quarter last year. HSN posted 11% growth in digital sales while Cornerstone saw 10% growth in digital sales, according to the company.

"Our ongoing focus on content-driven commerce continues to position us well for long-term growth," said Mindy Grossman, CEO of HSN, Inc. "HSNi's results in the quarter reflected strong top and bottom line performance, particularly on our digital and mobile platforms. We continue to advance our strategies to remain a leader in boundaryless retail."