Reuters
May 7, 2009
Home Shopping Network first quarter profit falls 68%
Reuters
May 7, 2009
May 7 (Reuters) - Home Shopping Network operator HSN Inc (HSNI.O) posted a 68 percent fall in quarterly profit, hurt mainly by a 22 percent drop in sales at its Cornerstone Brands segment.
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"For Cornerstone, we continued to experience sales challenges due to product category exposure in luxury home and apparel," Chief Executive Mindy Grossman said in a statement.
In response, the company cut catalog circulation by over 30 percent and inventories by 28 percent compared to last year.
HSNi, which was a subsidiary of media mogul Barry Diller's IAC/InterActiveCorp (IACI.O) until August 2008, posted a profit of $3.0 million, or 5 cents a share, down from $9.3 million, or 17 cents a share, in the year-ago quarter.
Revenue fell 7 percent to $629.6 million.
Sales at its HSN segment, however, fell less than a percent, as strong sales increases in fitness, health and electronics were offset by sales declines in jewelry and fashion.
Shares of the St. Petersburg, Florida-based company closed at $7.20 Wednesday on Nasdaq. (Reporting by Nivedita Bhattacharjee in Bangalore; Editing by Anne Pallivathuckal)
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