Home Shopping Network Inc.’s stock took a tumble yesterday on the company’s expectation that fiscal first-quarter earnings will fall below results for the same period last year.
The market responded, slapping down HSN’s shares $ 1.375, or 24.5%, to close at $ 4.50.
The company, the leading home shopping cable service, lost approximately $ 120 million in market capitalization during the day.
HSN said sales for the first quarter should be about 6% to 8% below those of $ 291.8 million reported in 1991’s first quarter.
In a filing with the Securities & Exchange Commission, the company said it has experienced a decline in sales and earnings for the first two months of its 1993 fiscal year.
Home Shopping attributes this decline to the weak economy and the uncertainty in buyers’ confidence levels caused by the recent elections. In addition, the company believes competition for television viewership from the presidential debates, political campaigns and other new programming offerings may have hurt sales.
After the elections, net sales and earnings appear to have improved, the company added.