St. Petersburg, Fla. - Net income declined at HSN Inc. during the first quarter of fiscal 2014 even as sales slightly improved compared to the same period a year earlier. Net income dropped 23% to $24.18 million from $31.54 million.
Net sales climbed 1% to $772.42 million from $772.65 million. A slight decline in average price point, as well as a higher tax rate and increased cost of sales, helped push HSN’s net income down. Mindy Grossman, CEO of HSN, Inc., also cited severe weather as a negative financial factor in the quarter.
"Similar to the overall retail sector, our results were impacted in the first quarter partially due to severe weather across the country, and softness in women's apparel, particularly at Garnet Hill,” said Grossman. “At HSNi, we are seeing improved performance, as demand strengthened throughout March. I believe our opportunity to drive growth remains intact and we are pleased with the areas of strength that we demonstrated during the quarter, including an increase in digital penetration of 220 basis points to 47%, mobile growth of 44% and reaching our highest customer levels to date."