Quarterly net sales for HSN Inc., the St. Petersburg-based operator of the Home Shopping Network, grew 10% over the year, to $708.4 million. The company also reported a 1% increase in adjusted net income, up to $18.7 million for the three months.
That adjustment from generally accepted accounting practices for net income (GAAP) centers on a three-year contract extension given to CEO Mindy Grossman back in August. At that time, Grossman received 200,000 restricted stock units, which are scheduled to vest over the life of her new contract.
The company's reported 1% increase in adjusted net income excludes the issuing of those stock options. When included, HSN's quarterly profits fell 10% over the year, from $16.6 million in 2009 to $14.9 million this year.
Grossman says HSN's continued focus on integrating television-based commerce with web-based technology has yielded positive results. “Our efforts to reach customers across multiple channels continue to be successful and contributed to an e-commerce net sales gain of 15% in the quarter," she said in a release.
HSN Inc. uses television, the web, mobile devices and brick and mortar stores to reach roughly 95 million customers across the United States.