HSN Shares Popped: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Retailer HSN (Nasdaq: HSNI  ) overcame weak consumer spending and popped 15% in intraday trading today after earnings trounced expectations.

So what: Non-GAAP EPS of $0.60 walloped the consensus estimate of $0.41 and grew 28% year over year. GAAP EPS of $0.53 grew 27% year over year. Revenue of $747 million grew 8% and came in 2% above the consensus forecast.

Now what: Compared to the year-ago quarter, the company's average price point increased 7%, unit volume increased 1%, and the return rate dropped to 17.6% from 18.2%. The CEO touted ongoing increases in e-commerce sales penetration, an expanding mobile business, and the success of HSN's online gaming site, HSN Arcade. The company seems to have turned a corner that will make year-over-year growth comparables tougher starting with this year's holiday shopping season.

Interested in more info on HSNI? Add it to your watchlist by clicking here.

Fool contributor Cindy Johnson does not own shares of any company named above. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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