Online sales are a bright spot in a disappointing quarter at IAC
IAC/Interactive Corp. has reported 1% growth in its retail sales in the second quarter to $701.4 million, despite double digit growth in online sales, including strong gains at Shoebuy.com. HSN, the television shopping network, reported revenue growth of just 1%, although that growth was 3% when excluding the results of the America’s Store unit that ceased operations.
Operating income in the retail segment fell 37% to $38.4 million from $60.5 million in the second quarter of 2006. The company attributed the slump to lower overall gross margins, increased operating expenses and higher on-air distribution costs.
For the company as a whole, which includes such operations as Ticketmaster, Lending Tree and search engine Ask.com, second quarter revenue was $1.51 billion, up 5.6% from $1.43 billion a year ago. Operating income was $135.6 million, down 17.9% from $165.1 million in the year-ago quarter.
“We are not satisfied with these results—whether driven by market conditions or our own hand—and are taking every appropriate action to have the back half of the year reflect a demarcation point to a 2008 more reflective of our ambition,” says chairman and CEO Barry Diller.
IAC is No. 26 in the Internet Retailer Top 500 Guide.
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