Hanover Direct, Weehawken, NJ, had second quarter revenue of $143.4 million, up 9.3% from $131.2 million in second quarter 1999. But the company’s net loss deepened during this time, from $5.8 million a year ago to $13.7 million. The quarter ended June 24.
Hanover attributed the loss to distribution expenses, systems development costs, and administrative costs in the company’s business to business e-commerce subsidiary.
Hanover Brands, Inc., the company’s direct commerce subsidiary, had second quarter revenue of $136.34 million, compared with $130.2 million a year ago. Revenue from continuing catalogs jumped by $12.6 million, or 10.1%, over second quarter 1999 levels. The division’s operating profit rose from $1.7 million in second quarter 1999 to $4 million.
Hanover Brand’s Internet sales were up as well. At $15.7 million, they represented 11.5% of the division’s total sales, and were up 138% over second quarter 199’s level of $6.6 million.
The Keystone Internet Services, Inc. unit of erizon, Inc., had revenue of $7.1 million, up from $1.1 million. This unit provides Internet order processing, customer care, and shipping and distribution services for Hanover’s customer base as well as outside clients.
Erizon itself had a net loss of $27.1 million, compared with a second quarter loss of $10 million a year ago. The division attributed the loss to investment spending.
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