The Ones to Watch

	THE COMEBACK KID

Rakesh Kaul, CEO, Hanover Direct

CEO since: 1996

Company founded: 1950. Publicly traded since 1991.

Catalogs: linens titles Domestications and The Company Store; home products books Improvements, Kitchen and Home, The Safety Zone, and Colonial Garden Kitchens; gifts and home furnishings book Gump's; apparel catalogs Austad's, International Male, Undergear, Tweeds, and Silhouettes

1997 sales: $558 million.

1997 losses: $11 million. Made $4.8 million profit on $171.6 million in sales in last quarter of fiscal '97-Hanover's first profit in three years.

1996 sales: $700 million

1996 losses: $105 million

Growth rate: "Starting in the second half of 1998, we're targeting double-digit growth in our core businesses."

Expected sales in 2001: $800 million-$1 billion

House file: 5.5 million 12-month buyers

Track record: Prior to Hanover, Kaul helped engineer turnarounds at vitamin company Shaklee and general merchandise cataloger Fingerhut.

Why a leader: Squeezed a profit out of wretched Hanover after the company had laid down to die. Harsh cutbacks in circulation and staffing finally stemmed the red ink; improved marketing, merchandising, and fulfillment seems to be taking hold. Stock price has more than tripled, from less than $1 in '96 to $3.25 this spring (high was $18 in 1994).

What they say: If Kaul keeps up the good work for the next three years, by 2001, "Hanover will have pulled out of the slump it's in by continuing to fine-tune. Its profits will have gone positive. It has narrowed the loss considerably, and I think it still has more work to do, but it's going in the right direction."-Lenser

"Rakesh has really gotten a handle on the business. It's made a big comeback. That's one that was brought back from the dead."-White

Prospects: Kaul has proven ability in turning around low-end businesses. The uptick will likely continue-but for how long?

	THE GLOBE TROTTER

Irwin Helford, CEO/chairman, Viking Office Products

CEO since: 1983

Company founded: 1960. Publicly traded since 1990.

Key manager: Bruce Nelson, president/ chief operating officer

Catalogs: 157 in the U.S. and 10 other countries, mostly in Europe and Australia. Categories include basic office supplies, computer supplies, office furniture, custom printing, and warehouse, janitorial, and sanitation products.

1997 sales: approximately $1.5 billion ($1 billion in international sales)

1997 earnings: roughly $70.1 million

Fiscal 1996 sales: $1.2 billion

Fiscal 1996 earnings: $62 million

Growth rate: 165% since 1994

House file: 2.6 million 12-month buyers

Track record: 100% office products guru. Developed catalogs for Reliable Stationery Co. before heading over to Viking as president.

Why a leader: Helford oversaw the company's surge from zero to $1 billion in international business since the first venture in England in 1990. The cataloger retains customers not on price but on "fanatical" service: virtually no backorders on 10,000 items, and free overnight shipping in every country it operates. In U.S., customers in 19 major cities get free same-day delivery.

What they say: "Viking is way above them all in international circles."-consultant Jack Schmid

"It has the formula down for moving into overseas markets. It looks at every market on its own merits, and it doesn't have a cookie-cutter approach. It has economies of scale in terms of buying in bulk; it's identified what each market wants, and that's what it sells. Its horizons are pretty much unlimited."-White

Prospects: Helford has perfectly positioned Viking for global business and e-commerce. The firm also subscribes to "customer first" marketing, resulting in huge repeat buying rate. Says Helford: "If the retention number is right, the financial reports take care of themselves."