HSN profit up 15%, stock up 2%

ST. PETERSBURG — HSN Inc. (symbol: HSNI) earned $20.3 million in profits on $724 million in net sales in the first quarter of 2011, up 15% and 6% over the year.

As a result, the value of HSN stock reached a new 52-week high in early trading Wednesday, up to $35.43 per share at one point. After falling below $28 a share as recently as early February, the stock is now up roughly 15% year-to-date.

HSN operates the Home Shopping Network, which reaches 96 million homes across the country. But the firm's latest positive results are being boosted by Cornerstone, its newest business segment, which uses mail-order catalogs to sell products from its own brand lines.

A year ago, Cornerstone posted a $1.8 million operating loss; this year, it generated $500,000 in operating income.

The St. Petersburg-based company ended the quarter with $344 million in cash and cash equivalents on its balance sheet, up more than 30% over the year.