HSN Profit Tops Street - Update

(RTTNews) - Multi-channel retailer HSN Inc. (HSNI) Thursday reported a higher fourth-quarter profit, helped by a four percent increase in sales and improved margins. While quarterly earnings topped Wall Street estimates, sales fell short of expectations.

HSN retails a range of merchandise through various platforms, including stores, television, online, mobile and catalogs.

The St. Petersburg, Florida-based company posted fourth-quarter net income of $61.6 million or $1.14 per share, compared with $56 million or $1.00 per share last year.

Excluding items, adjusted earnings for the quarter were $60 million or $1.11 per share, compared with $56 million or $1.00 per share in the prior year.

On average, 9 analysts polled by Thomson Reuters expected earnings of $1.09 per share for the quarter. Analysts' estimates typically exclude special items.

Sales for the fourth quarter climbed to $1.02 billion from $983 million a year ago. Seven analysts had a consensus revenue estimate of $1.02 billion for the quarter.

At its namesake HSN segment - which sells jewelry, apparel, beauty/wellness products and electronics - sales increased 2 percent year-over-year.

At Cornerstone segment, which sells home furnishings and other items, sales climbed 8 percent, including 9 percent growth in digital sales.

Total units shipped for the quarter edged up 1 percent from last year to 18.2 million.

Gross margin for the quarter expanded 10 basis points to 34.5 percent.

Results were also helped by income tax expense that decreased to $34.6 million from $35.1 million last year.

HSN said it is focused on expanding the retail operations through digital and mobile platforms.

The company has declared a quarterly cash dividend of $0.25 per share.

HSN stock is trading at $57.61, up $1.34 or 2.38%, on a volume of 103 thousand shares on the Nasdaq.