Mobile sales propel HSN in Q1

HSN’s push to make it easier for smartphone shoppers to buy its products online was successful in the first quarter, with the multichannel retailer reporting a big increase in mobile sales.

Digital sales at HSN grew 18%, with mobile sales increasing 31%.HSN earned $0.63 per share in the first quarter, exceeding analyst expectations of $0.58 per share. Similarly, revenue of $841.9 million was better than the $826.08 million analysts expected.

"Our performance in the quarter reinforces the experiential power of our content and our ability to create engagement across our platforms," said Mindy Grossman, CEO of HSN. “HSNi had net sales growth of 8 percent and adjusted EBITDA growth of 22 percent. 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 with digital up 12 percent, representing half of our total business. Mobile sales grew 31% for the quarter, with penetration at 18% of total sales."

During the quarter, the company paid a special cash dividend of $10 per share along with the quarterly dividend of $0.35 per share and also announced a new four million share repurchase program.

The company also approved a quarterly cash dividend of $0.35 per share payable June 17 to shareholders of record as of June 3.