In the fourth quarter, HSN recorded net income of $43.5 million, or 82 cents per diluted share, as compared with $59.7 million, or $1.12 per diluted share, in the previous-year period.
Adjusted net income was $43.3 million, or 82 cents per share versus, $60.9 million, or $1.15 per share, in the quarter a year earlier. A Thomson Reuters analyst average estimate called for adjusted earnings per share to come in at 77 cents.
HSN posted net sales of $1.07 billion versus $1.1 billion in the prior-year period. Operating income was $72.9 million compared with $98.5 million in the year-before quarter. Although net sales decreased 2% for the quarter year over year, digital revenue increased 4%, the company reported, and now represents 55% of customer purchasing.
In the full fiscal year, HSN recorded net income of $118.7 million, or $2.25 per diluted share, as compared with $169.2 million, or $3.16 per diluted share, in the previous-year period Adjusted net income was $138.3 million, or $2.62 per share, versus, $175.6 million, or $3.28 per share, in the quarter a year earlier.
HSN posted net sales of $3.57 billion versus $3.69 billion in the prior-year period. Operating income was $205.8 million compared with $294 million in the year-before quarter.
“Clearly, 2016 was a year of disruption in retail characterized by a distracting environment, cautious consumer spending and a heightened promotional climate,” said Mindy Grossman, HSN CEO. “While this impacted the performance of our business, we have been taking strategic actions to best position HSN and take advantage of new opportunities, including building our brands with a continued emphasis on digital, now representing 55% of our business, with mobile 45% of digital. In addition to the disruptive retail climate, our overall fourth quarter results were affected by certain underperforming product categories, particularly jewelry and areas within home in the Cornerstone portfolio, the standardization of our shipping and handling practices at HSN and implementation of our supply chain optimization initiative. Also, our year-ago comparisons were distorted by the divestiture of two businesses. We expect our hard work and learnings from 2016 to position 2017 as a year of growth regeneration, with a laser-focus on our proprietary product pipeline; driving customer acquisition, retention and spend, optimizing digital platforms, leveraging our distributed commerce capabilities, advancing our supply chain initiatives and cultivating talent across the organization. We will be executing against these priorities while investing in operational execution for future efficiency and leverage.”
