• Jennifer Marks

HSNi launching new digital content and new stores

Q2 profit climbs despite sales slip

St. Petersburg, Fla. – HSNi brands HSN and Cornerstone are moving to attract new customers.

During this morning’s second-quarter analyst call, executives outlined key initiatives:

  • HSN Now, a video-on-demand service that will allow shoppers to tap into programming about their favorite brands and top items or shop content based on trends.
  • The HSN2 television channel will launch live programming this month and will be populated with more short-sell videos.
  • The Cornerstone division opened a new Ballard Design Studio in on Long Island, NY, last month and is on track for the Q4 opening of another store in Charlotte, N.C.
  • Frontgate, also part of Cornerstone, soft opened a new store in Plano, Texas, last month that will grand open Sept. 7. A relocated Atlanta store will soft open next month and grand open in Q4.

At HSN, home was a strong performer during the second quarter – although home textiles were not called out among the leading categories. The division’s sales fell 4.0% to $532.2 million, with operating income down 29.0% to 39.2%.

At Cornerstone, the exclusive Eileen Fisher Home collection and apparel drove sales at Garnet Hill. No other product categories were highlighted for the division. Cornerstone Q2 sales fell 3.0% to $298.2 million. Operating income came in at $16.4 million vs. an operating loss of $8.9 million in the year-ago quarter.

For the quarter ended June 30, total HSNi sales dropped 4% to $821.4 million. Digital sales penetration rose 210 basis points to 54.7%. Excluding the results of TravelSmith and Chasing Fireflies, two Cornerstone brands divested last September, HSNi's net sales fell 2%.

Net income climbed 24.0% to $32.8 million, or 62 cents per share.

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