Hanover Reduces Loss from Continuing Operations

Multititle mailer Hanover Direct (Amex: HNV) reported a net loss of $9.1 million for the year ended Dec. 28, compared with a net loss of $5.8 million in 2001. But the net loss from continuing operations was only $400,000, compared with a $24.0 million net loss the previous year. During the year, Hanover recorded $4.4 million in special charges related to its previously announced strategic business realignment program and $3.5 million in unusual litigation costs.

Net revenue decreased 14%, to $457.6 million from $532.2 million. Revenue for continuing businesses decreased 7%, while circulation for the continuing businesses was cut 9%.

Net sales including postage and handling through the Internet rose 30%, to $87.3 million from $66.9 million in 2001. Internet sales for Hanover Direct amounted to 20.3% of brand sales.

The Edgewater, NJ-based multititle marketer mails the Domestications, Company Store, Company Kids, Silhouettes, International Male, Scandia Down, and Gump’s by Mail home goods and apparel catalogs. It also owns San Francisco retailer Gump’s.