Harte-Hanks Warns of Direct Marketing Mid-Teens DeclineDirect marketing services company Harte-Hanks Inc. said yesterday that its direct marketing revenues will take a mid-teens percentage drop in the second half of the year from the comparable 2000 period due to weakness in its key retail, high-tech/telecom and financial markets.
"These trends were in evidence prior to the tragedy of September 11 and have accelerated since then," said Larry Franklin, chairman and CEO.
Turning to shopper revenues, Franklin said, "Our shoppers are performing well given the slowdown in the economy. Revenues continue to grow, but we are seeing a definite slowdown and we are cycling against near double-digit revenue growth in the second half of last year."
While Franklin would not comment on quarterly earnings per share estimates, he said "we are committed to maintaining our tight cost controls during this period of economic uncertainty which has been compounded by the tragedy of September 11, with the goal of achieving second half EPS numbers that match the numbers for the same period last year."
San Antonio-based Harte-Hanks will announce its third quarter results after the close of business on Oct. 23.