Second quarter net sales at HSN Inc. were down mid-single digits as company officials said the retailer remains focused on further developing its proprietary product assortment while preparing for its pending purchase by Liberty Interactive.
For the quarter ended June 30, company wide sales were $821.4 million, a decrease of 4% year-over-year. Net income increased 24% to $32.8 million and diluted earnings per share were $0.62 compared to $0.50 in the prior year.
Within the HSN segment, net sales were $532.2 million, a decrease of 4% year-over-year. Digital sales were up 2% and sales in the wellness and home categories also increased, the company said.
“The continued strength of digital sales, and mobile sales, in particular, has been very encouraging with digital sales now representing 55% of our total revenue,” said Rod Little, chief financial officer, HSNi. “Mobile, which we see as our flagship, continues to be our fastest growing sales channel and a source of new customer acquisition.”
Little noted that as the company prepares for the pending acquisition by Liberty Interactive, the parent company of QVC, which was announced in early July, HSN remains committed to its strategies to improve performance in the short and long term.
“Our key priorities remain: acquiring and retaining customers via a robust and relevant product portfolio, optimizing our digital platforms and improving efficiencies throughout the business, all to drive consistent shareholder value creation,” said Little.