HANOVER DIRECT PARES ITS LOSS TO $3.8 MILLION IN 4TH QUARTER
NEW YORK — Hanover Direct, the catalog and e-commerce firm, cut its loss in the fourth quarter ended Dec. 25 to $3.8 million from $13.4 million.
Sales gained 3.4 percent to $169.2 million from $163.6 million. The firm, based in Weehawken, N.J., sells apparel through catalogs Silhouettes and International Male, gifts through Gump’s and home fashions through Domestications, The Company Store, Colonial Garden Kitchens and Kitchen & Home. All its brands conduct e-commerce.
The latest quarter included a pretax gain of $5.3 million from the sale of The Shopper’s Edge and Austad’s.
In the full year, the loss was trimmed to $16.9 million from $26.2 million. Sales inched up 0.7 percent to $549.9 million from $546.1 million.
Rakesh K. Kaul, president and chief executive officer, said 1999 results “demonstrate the turnaround and transformation of Hanover Direct into a fast-growing e-commerce leader.” The firm last year created two separate divisions, Hanover Brands, which consists of catalogs and e-commerce to consumers, and Erizon, a Web-based business-to-business firm.
Hanover Brands reported earnings before interest and taxes of $10.4 million last year, with total revenues ahead 0.7 percent to $546.1 million. Erizon showed an operating loss of $18.9 million.
Hanover Direct noted that at year-end, its active customer e-mail accounts had reached one million.