The operator of Home Shopping Network saw its net sales fall 4 percent to $785.4 million in the first quarter of 2017, while its net income dropped by about 25 percent to $21.2 million, compared with $28.6 million a year ago.
HSN’s adjusted earnings before income, taxes, depreciation and amortization also decreased by 18 percent to $54.1 million for the quarter.
Wall Street isn’t happy with the results, and shares of the Florida-based company fell more than 3 percent to $36.58 in early-morning trading.
As with other retailers, digital was a bright spot, and its digital sales grew by 3 percent.
“The continued strength of digital sales, and mobile sales in particular, has been very encouraging,” said Rod Little, HSN’s chief financial officer. “Digital sales, which now account for over half of our revenue, continued to grow both in absolute terms and as a proportion of total revenue. Mobile, which we see as our flagship, continues to be our fastest-growing sales channel and significant source of new customer acquisition.”
Little is part of the newly established office of the chief executive officer at HSN, which was established after the departure of ceo Mindy Grossman, who recently left the ceo position to join Weight Watchers as international president and ceo.
The new office also includes Bill Brand, chief marketing officer and president, Judy Schmeling, chief operating officer of HSN and president of HSN affiliate Cornerstone Brands Inc.
HSN is coming off a mixed 2016, which ended with net income down 12.6 percent to $59.7 million and net sales down 1.8 percent to $1.1 billion during the fourth quarter.
Digital sales at the time also made up more than half of the company’s business and digital accounted for almost 40 percent of those sales.
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