Online sales grow 12% for HSN Inc. in Q1
May 6, 2015 04:37 PM
Web sales growth outpaced total sales for HSN Inc. in Q1, and mobile sales growth was even brighter for the TV, web and mobile web retailer.
The retailer, No. 25 in the Internet Retailer Top 500 Guide, says web sales in the quarter grew 12.5% to $409.16 million compared to $363.82 million in Q1 of 2014. Total sales grew 8.1% to $841.9 million compared with $777.4 million a year earlier. The web also accounted for a larger percentage of sales in Q1—48.6%—than a year earlier when web sales accounted for 46.8% of sales.
Mobile sales were the star in terms of growth, increasing 31% year over year to $151.54 million and accounting for 18% of total sales. HSN Inc. includes the company’s HSN and Cornerstone brands.
“Our performance in the quarter reinforces the experiential power of our content and our ability to create engagement across our platforms," says Mindy Grossman, CEO. “These results demonstrate the continued execution of our strategy to drive commerce by creating personal connections with our customers and offering unique and compelling products. Once again, accelerated performance in digital was a key factor in our strong growth momentum.”
For the first quarter ending March 31, HSN Inc. also reported:
- Total sales at its Cornerstone brand increased 3.6% to $241.4 million, compared with $232.9 million a year earlier.
- Online salesat Cornerstone totaled $164.39 million, up 4.6% from $157.20 million a year earlier.
- Online sales at Cornerstone accounted for 68.1% of total sales compared with 67.5% a year earlier.
- The average ticket was $78.71 for Cornerstone, a 10.2% increase compared with $71.44 a year earlier.
- The return rate for Cornerstone was 13.3% compared to 13.8% a year earlier
- Net sales for the HSN brand increased 10.3% to $600.5 million from $544.5 million.
- Digital sales at HSN grew 18.4% to $244.40 million compared with $206.36 million a year earlier.
- Online sales at HSN in Q1 accounted for 40.7% of total sales in Q1 compared with 37.9% a year earlier.
- The average ticket for HSN was $57.30, a 1.6% increase compared with $56.38 a year earlier.
HSN also announced today a deal with lifestyle company Margaritaville Enterprises. The deal marks the largest partnership of the year for HSN Inc. and will result in more than 200 SKUs of additional merchandise offered across HSN and Cornerstone's Frontgate and TravelSmith brands.
Margaritaville Enterprises products include culinary, home, electronics, beauty and apparel items that are influenced by the laid-back, island way of life where “It’s always 5 o’clock somewhere,” HSN says.