Online sales climbed 24% year over year, while Best Buy’s overall sales were flat.
Internet sales at Hanover Direct increased 7.3% in the first half while total revenue decreased 7.5%. Hanover Direct earned $1 million in the half vs. a loss of $7.6 million a year ago.
Internet sales at Hanover Direct Inc. increased 7.3% in the first half to $57 million from $53.1 million a year ago, the company reported this month. The web now accounts for 31.6% of all sales at the multi-brand catalog and web retailer, vs. 27.1% a year ago.
Total revenue in the first six months decreased 7.5% to $191.9 million from $207.4 million for the comparable period in 2003. The company attributed the decrease to lower inventory levels caused by the company`s reduced borrowing ability, tighter vendor credit and a decline in initial product fill rates and increases in backorders and cancellations. The company says it continued its planned reduction in circulation for the Domestications brand in order to limit the investment in catalog production costs and working capital necessary to maintain inventory.
For the second quarter, web sales grew 2.9% to $28.3 million from $27.5 million while total sales decreased 8.9% $96.5 million from $105.9 million for the comparable period in 2003.
The company earned $600,000 in the quarter and $1 million in the half. Last year, the company lost $3.6 million in the second quarter and $7.2 million in the half.
Hanover Direct reported in July that it had arranged financing to increase its liquidity by $25 million. "It was a difficult quarter reflecting the impact that our tight liquidity position had on all of our businesses," said Wayne Garten, president and CEO. "On the positive side, the company still was able to report its third consecutive profitable quarter primarily as a result of The Company Store`s continued strong performance. In addition, our new financing arrangements provide the company with adequate liquidity to support its business."
Edgewater, NJ-based Hanover Direct operates Domestications, The Company Store, International Male, Undergear, Silhouettes, Clearance World and Gump’s brands.