Apparel and home goods cataloger Hanover Direct posted a 9% drop in second-quarter net revenue. For the three months ended June 26, the parent company of the Domestications, Silhouettes, International Male, Company Store, Scandia Down, and Gump’s by Mail catalogs had sales of $96.5 million, down from $105.9 million last year.
The company blames lower inventory levels caused by reduced liquidity and reduced circulation of its Domestications bedding title. The company on July 8 closed and funded a $20 million term loan facility with Chelsey Finance and amended its existing senior credit facility with Congress Credit Facility increasing Hanover’s liquidity by $25 million in the aggregate.
On the positive side, the company posted its third consecutive profitable quarter, due in large part to The Company Store’s strong performance. Net income applicable to common shareholders was $1.0 million, compared with last year’s second-quarter net loss of $7.2 million.