Hanover Sees Revenue Dip, Restates Earlier Results

Share this content:
Along with the announcement yesterday that second-quarter revenue decreased for direct marketer Hanover Direct Inc., the Edgewater, NJ, company released restated financial results for all periods dating back to fiscal 2000 due to the discovery of an accounting error.


Net revenue fell by $9.4 million, or 8.9 percent, for the 13 weeks ended June 26 to $96.5 million compared with the year-ago period. The drop resulted from lower inventory levels caused by the company's reduced liquidity, according to a statement from Hanover. A lower circulation rate for its Domestications catalog also contributed to the performance.


However, Internet sales in the quarter increased 2.9 percent to $28.3 million compared with last year.


Net income for the quarter was $600,000.


Wayne Garten, president/CEO of Hanover, said in a statement that The Company Store's continued strong performance helped deliver Hanover's third consecutive profitable quarter.


Hanover Direct identified what it termed a "revenue recognition cut-off issue" during the second quarter, resulting in the restatement of revenues. The issue was the result of revenue being recorded in advance of the actual shipment of merchandise to customers.


Hanover Direct's portfolio of home fashion, apparel and gift catalogs and e-commerce platforms includes Domestications, The Company Store, Silhouettes, International Male, Scandia Down and Gump's by Mail.


close

Next Article in Multichannel Marketing

Sign up to our newsletters

Company of the Week

Brightcove is the world's leading video platform. The most innovative and respected brands confidently rely on Brightcove to solve their most demanding communication challenges because of the unmatched performance and flexibility of our platform, our global scale and reliability, and our award-winning service. With thousands of customers and an industry-leading suite of cloud video products, Brightcove enables customers to drive compelling business results.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above