Aug 6, 2009
Home Shopping Network posts second quarter profit on cost control
Aug 6, 2009
Aug 5 (Reuters) - Home Shopping Network operator HSN Inc (HSNI.O) swung to a quarterly profit as tighter cost controls offset persistent weakness in its Cornerstone brand, which caters mainly to the home segment.
Curations from the Home Shopping Network - Photo: www.hsn.com
For the second quarter, HSNi, which was a subsidiary of media mogul Barry Diller's IAC/InterActiveCorp (IACI.O) until August 2008, earned $13.6 million, or 24 cents a share, compared with a loss of $249.8 million, or $4.44 a share, a year earlier.
Revenue for the company, which competes with other multichannel retailers like QVC Inc and ValueVision Media Inc (VVTV.O), fell 8 percent to $640.1 million.
HSN segment net sales fell 1 percent to $454.2 million, while sales for Cornerstone dropped 21 percent to $185.9 million, weighed down by lower consumer demand for luxury home furnishings, outdoor products and apparel.
Total operating expenses more than halved to $201.1 million.
Shares of the St Petersburg, Florida-based company closed at $9.65 Wednesday 5 August on Nasdaq. (Reporting by Viraj Nair in Bangalore; Editing by Deepak Kannan)
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