HSN Inc. reported second quarter sales of $640.1 million, down 8% from the $695.8 million it racked up in second-quarter 2008. But the company turned a $249.8 million net loss from a year ago into net income of $13.6 million for the quarter ended June 30.
Second-quarter 2008’s results includes a $300 million goodwill and intangible asset impairment charge related to HSN’s Cornerstone segment.
Within its individual units, HSN generated $454.2 million, a 1% slip from the $460.9 million it pulled in a year ago.
Despite the seemingly small slip in revenue, HSN shipped 2% more units during the most recent quarter, reflecting sales of more lower-cost items and more promotional pricing. This division sent out 9.1 million units during the most recent quarter, compared with 8.9 million a year ago. Its average price point dropped from $59.07 to $56.58 between the two quarters.
Within its product mix, crafts and fitness items were strong, while fashion items were harder sells. Jewelry sales reflected shifts to lower price-point items such as silver and fashion jewelry.
The company’s Cornerstone unit pulled in $185.9 million, down from $234.9 million. But the unit was profitable, pulling in $2 million in operating income, compared to the $300 million loss it took a year ago.
Cornerstone’s per-unit sales were higher than in second quarter 2008, with the average price point for the quarter just ended standing at $70.29, compared with $69.46. But this division shipped fewer orders, with unit mailed dropping from 3.6 million to 2.8 million. This reflected “lower consumer demand overall for luxury home furnishings, outdoor products and apparel,” the company said in notes accompanying its quarterly figures.
The company also radically trimmed its catalog circulation, from 80.8 million in second-quarter 2008 to 64 million, for the quarter just ended.
