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RAPAPORT... Revenue at HSN Inc. rose 6 percent year on year to $812.6 million for the second quarter that ended on June 30. HSN's sales climbed 5 percent to $526.2 million, while Cornerstone's revenue jumped 8 percent to $286.4 million. Cost of sales rose 6 percent to $503.8 million. Profit surged 41 percent to $43.3 million. Digital sales grew 10 percent for HSN with penetration increasing 160 basis points to 35.4 percent. Overall, sales grew for home design, household goods, electronics and apparel and accessories, however, revenue declined from jewelry and culinary products. Net sales were favorably affected by lower return rates. The average price point decreased 4 percent, while units shipped increased 7 percent primarily due to an increase in clearance activity. Gross margin decreased 60 basis points to 35.6 percent of sales, primarily due to an increase in shipping and handling promotions.
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