|
RAPAPORT... HSN Inc. reported that sales rose 5 percent year on year to $855.2 million for the second quarter that ended on June 30. HSN's net sales increased 6 percent to $556.5 million, including an 11 percent increase for its digital channel, while Cornerstone's net sales increased 4 percent to $298.7 million. HSNi observed that sales from mobile devices represented 15 percent of the total. The company's profit fell 5 percent to $40.9 million or 76 cents per share.
During the quarter, HSN recorded increased sales for beauty, home design, health and culinary, which were offset by lower sales for electronics and jewelry. The company's gross margin decreased 30 basis points to 35.3 percent primarily due to an increase in shipping promotions. "Our focus during the second quarter remained on engaging our customers, emphasizing our unique content and proprietary products and strengthening our digital platforms," said Mindy Grossman, the CEO of HSN Inc. "Our customer file metrics at both HSN and within the Cornerstone portfolio were at record highs. We also returned $63 million to our shareholders through our capital return plan." As of June 30, HSNi had cash and cash equivalents of $122.3 million compared with $196.4 million as of December 31. HSNi repurchased approximately 900,000 shares of its common stock at a cost of $49.5 million, or an average cost of $54.78 per share. In July 2014, HSNi completed its 10 million share repurchase program authorized in September 2011 at an aggregate cost of $451 million, representing an average cost of $45.10 per share. Since the inception of its capital return plan, HSNi returned $558 million to its shareholders through a balanced approach of share repurchases and cash dividends. The board approved a cash dividend of 25 cents per share payable on September 17.
|