Sales increases at HSNi’s operating segments bolster Q2 results
Net sale increases at HSNi’s HSN and Cornerstone operating segments had a favorable impact on the company’s total net sales, which increased 6% to $812.6 million for the second quarter ended June 30 from $767.2 for the same quarter last year.
HSN’s 5% net sales increase to $526.2 million for the quarter, from $502 million for the same quarter last year, was due in part to lower return rates. The average price point decreased 4% while units shipped increased 7% primarily due to an increase in clearance activity.
Sales grew in home design, household, electronics and apparel and accessories, but were offset by lower sales in jewelry and culinary.
Cornerstone's net sales increased 8% to $286.4 million, including 10% growth in digital sales, from $265.3 million for the same quarter last year. The increase in net sales was driven by sales growth in the home brands.
"Our strong financial performance during the second quarter is a result of the uniqueness of our customer experiences, the power of our digital platforms and the quality of our brands and products," said Mindy Grossman, CEO of HSN, Inc. "Sales for the quarter were up 6%, digital sales increased 10% and EPS grew 30%. In addition, we continued returning value to shareholders through our share repurchase and cash dividend programs."