In its second-largest acquisition, Amazon buys the company for $970 million.
Internet sales in the first nine months of the year at Hanover Direct grew 28.3% over the first nine months of last year while companywide revenue declined 7.4%. Q3 web sales were up 21.3% while companywide revenue was down 8.9%.
Internet sales in the first nine months of the year at multi-line direct retailer Hanover Direct Inc. grew 28.3% over the first nine months of last year, reaching $79.2 million, the company reported today. Companywide revenue for the first nine months declined 7.4% to $304.9 million from $329.4 million. Internet sales accounted for 27.6% of all retail sales in the first nine months, excluding revenue from Hanover`s Keystone division, which sells b2b services.
In the third quarter, web-based sales were up 21.3% to $26.2 million while companywide revenue was down 8.9%.
Hanover Direct reported a net loss of $15.8 million for the first nine months vs. a net loss of $4.2 million for the comparable period in 2002. For the third quarter, the company reported a net loss of $16.6 million compared with a net loss of $4.2 million in Q3 2002. The company said $11.3 million of the nine-month loss was due to a deferred federal income tax provision.
Hanover’s brands include Domestications, The Company Store, Company Kids, Silhouettes, International Male, Scandia Down, and Gump`s By Mail. It also owns Gump`s, a retail store in San Francisco. It also operates Keystone Internet Services LLC, a third-party fulfillment company that also provides logistical, IT and fulfillment support to Hanover’s catalogs and web sites.
Also today, J.C. Penney Co. Inc. reported that said sales at JCPenney.com rose more than 45% year-to-year for its third quarter ended Oct. 25, while combined catalog and Internet sales rose 4.1% and comparable department store sales increased 1.7%. “Operating results for department stores and catalog/Internet exceeded our expectations,” said chairman and CEO Allen Questrom, adding: “Internet sales continued a strong growth trend.”