It was a challenging third quarter for HSN as the impact of Hurricane Irma and the divestiture of two Cornerstone brands had a negative impact on sales.
For the quarter ended September 30, the company reported a 5% drop in sales to $782.6 million. Net income was $16.2 million, down from $20.2 million the third quarter of 2016. Adjusted earnings per share (EPS) was $0.37 versus adjusted EPS of $0.52 in the comparable quarter the previous year. Sales in the HSN division were down 6% while sales in the Cornerstone division were off 3%.
In September, HSN closed its St. Petersburg, FL, headquarters, redeployed personnel and relocated its broadcast studios in an effort to continue broadcast operations as Hurricane Irma impacted the Sunshine State. The company estimates the hurricane had a negative impact on sales of 1.6%, and the sales of Cornerstone brands TravelSmith and Chasing Fireflies negatively impacted sales 1.5%.