Online sales increase almost 3%, but HSN’s total sales dip by the same amount.

Online sales accounted for more than half of all sales in the first quarter for TV and online retailer HSN Inc.

Though web sales increased, total sales fell, which CEO Mindy Grossman chalked up to the “volatile retail environment combined with the repositioning of our product portfolio.”

Digital “remains a key area of strategic focus and we continue to pursue opportunities to optimize our distributed commerce platforms,” Grossman said. ”We are confident that as we accelerate our differentiated product pipeline, expand our content and reach and leverage new partnerships and platforms, we will be well positioned for long-term sustainable growth.”

For the quarter ended March 31, HSN, No. 25 in the Internet Retailer 2016 Top 500 Guide, reported:

  • Web sales accounted for 51.5% of sales compared with 48.6% in the same quarter of 2015. Based on those percentages, online sales were $420.64 million, up 2.8% from $409.16 million.
  • Total sales of $816.77 million, down 3.0% from $841.89 million.
  • Online sales for its HSN segment increased 3.7% and accounted for 43.8% of total unit sales. Based on those percentages, online sales were $253.34 million in Q1 2016 compared with $244.40 million in the same quarter last year.
  • HSN’s total sales were $578.4 million, down 3.7% from $600.5 million in 2015. Sales grew in electronics, wellness and culinary products, but were offset by decreases in other categories. About half of the decline in total sales was attributed to the conclusion of a direct-response television marketing campaign.
  • E-commerce sales for its Cornerstone Brands segment, which includes children’s apparel retailer Chasing Fireflies and home furnishings retailer Garnet Hill, increased 1.5% and accounted for 70% of total Cornerstone sales. Based on those percentages, online sales were $166.88 million in Q1 2016 compared with $164.39 million in the same quarter last year.
  • Cornerstone’s total sales decreased 1.2% to $238.4 million from $241.4 million, which HSN attributed to lower apparel sales which were hurt by a decline in catalog circulation.
  • Net income of $28.6 million, down 15.1% from $33.7 million in Q1 2015.
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