HSNi boosts sales and margin in 2Q
Home & Textiles Today Staff -- Home Textiles Today, August 1, 2012
St. Petersburg, Fla. - HSNi's second quarter profit took a slight dip, but sales and gross margin were up in both its HSN and Cornerstone divisions.
Net income for the quarter ended June 30 slipped 3.8% to $30.7 million, or 53 cents per share. Total sales rose 6% to $767 million.
In the HSN division, which includes television sales and ecommerce, sales during the quarter were up 4% to $501.9 million. Average price point shrank 5% to $ 58.64, but the number of units shipped climbed 10% and gross profit margin jumped by 20 basis points to 36.2% of sales.
In the Cornerstone division - whose catalog and internet nameplates include Ballard Designs, Chasing Fireflies, Frontgate, Garnet Hill, Grandin Road, Improvements and TravelSmith - sales jumped 11% to $265.3 million. Average price point grew 4% to $ 81.73 and the number of units shipped rose 7%. Gross profit margin increased 10 basis points to 42.1% of sales.
"This quarter, we made excellent progress in building our interactive, content-driven, direct to consumer portfolio of aspirational lifestyle brands," said Mindy Grossman, ceo.
During the quarter, the company acquired Chasing Fireflies and divested the Smith+Noble and The Territory Ahead properties.
For the six-month period, net income increased 8.9% to $56.9 million, or 96 cents per share. Sales rose 6% to $1.505 billion.