Hanover Direct reports web sales of $167.6 million for fiscal 2006, up 18.6% from $141.3 million in 2005. For fiscal 2006, ending Dec. 30, Internet sales reached 44.9% of combined catalog and Internet revenue compared to 39.2% for fiscal 2005.
“While we believe our catalogs are the catalysts that drive our businesses, an increasing portion of our revenue comes through our web sites,” the company says in its 10-K filing. However, catalog sales declined 5.9% for fiscal 2006 to $205.9 million compared to $218.0 the previous year.
Hanover Direct, No. 73 in the Internet Retailer Top 500 Guide, reports total 2006 revenue of $415.7 million, up 2% from $407.4 million in 2005. The increase was aided by a boost in catalog circulation levels, higher response rates and increased Internet marketing expenditures, the company says.
The increase was partially offset by lower average order size and a decline in revenue related to third-party fulfillment operations, the company says, which it plans to end this year.
Online marketing activities include posting merchandise on comparison shopping sites such as Shopping.com and Shopzilla Inc.’s BizRate. Hanover Direct also uses affiliate web sites like Amazon.com and Shop.com. Fiscal 2006 e-commerce tactics included increasing Internet marketing spending by $3.1 million, mainly in paid keyword search on Google, Yahoo and MSN, which the company believes has led to the increased financial performance of its web sites.
Company web sites include Domestications.com, TheCompanyStore.com, CompanyKids.com, InternationalMale.com and Undergear.com.
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