HSN Inc. Earnings: The Strategic Business Plan is Working
HSN, Inc. (NASDAQ:HSNI) reported net income above Wall Street’s expectations for the first quarter. HSN, Inc. is an interactive multi-channel retailer offering retail experiences on TV, online, in catalogs and in retail and outlet stores through its two operating segments, HSN and Cornerston.
HSN Inc. Earnings Cheat Sheet for the First Quarter
Results: Net income for the catalog and mail order house rose to $20.3 million (34 cents/share) vs. $17.7 million (30 cents/share) in the same quarter a year earlier. A rise of 14.9% from the year earlier quarter.
Revenue: Rose 6% to $724 million YoY.
Actual vs. Wall St. Expectations: HSNI reported adjusted net income of of 41 cents/share. By that measure, the company beat the mean estimate of 26 cents/share. Estimates ranged from 24 cents per share to 28 cents per share.
Quoting Management: “Our focus on maximizing performance through innovative product launches and events, strategic partnerships and increased digital efforts led to HSNi sales growth of 6%, e-commerce sales penetration of 40% and an Adjusted EPS gain of 14%,” said Mindy Grossman, CEO of HSN, Inc. “We are committed to positioning our business for long-term success by delivering on our strategy of offering unique products and experiences, deepening customer engagement and accelerating e-commerce growth across the portfolio.”
Gross margins expanded last quarter, rising 0.5 percentage point to 35.1% from the year earlier quarter. This snaps a streak of two consecutive quarters of shrinking margins.
Over the last five quarters, revenue has increased 8.4% on average year over year. The biggest increase came in the third quarter of the last fiscal year, when revenue rose 10.5% from the year earlier quarter.
Competitors to Watch: ValueVision Media, Inc. (NASDAQ:VVTV), Liberty Media Corp (NASDAQ:LINTA), eBay Inc. (NASDAQ:EBAY), Gaiam, Inc. (NASDAQ:GAIA), Overstock.com, Inc. (NASDAQ:OSTK), The Parent Company (KIDSQ), Amazon.com, Inc. (NASDAQ:AMZN), Hot Topic, Inc. (NASDAQ:HOTT), BIDZ.com, Inc. (NASDAQ:BIDZ), and Stamps.com Inc. (NASDAQ:STMP)
Stock Performance: Shares of HSNI are up 2.5% from the previous close.