Cataloger Hanover Direct generated $457.6 million in revenue during 2002, down from $532.2 million a year earlier. Its net loss rose to $24.7 million from $16.6 million during the same period. The 2001 revenue figures include $24.8 million from sales of two of its properties.
Hanover’s bottom line was affected by two elements: A $3.8 million income tax expense, up from $120,000 in 2001, and nearly $15.6 million in preferred stock dividends and accretion, compared with $10.7 million a year earlier.
But these were offset by some encouraging figures Hanover reported on its operations side. The company managed to pull its cost of sales and operating expenses slightly, to 63.5% of its net revenue from 63.8% a year earlier. It also trimmed its selling expenses from 26.5% of its net revenue to an even 23%.
The Edgewater, NJ-based marketer did so partly by selling its Improvements line in mid-2001, as well as discontinuing its Domestications Kitchen & Garden, Kitchen & Home, Encore and Turiya catalogs. But it also trimmed 9% from the overall circulation of its continuing operations, primarily by reducing mailings to unprofitable segments. Hanover’s fiscal year ended Dec. 29.
