Hanover records small profit, higher margins
May 26, 2003,
Raising $1.9 million through the sale of its Improvements business, and at the same time building margins and cutting costs, Hanover Direct Inc. returned to profitability during the first quarter, recording a small profit of $192,000, compared with a prior-year loss of $1.8 million.
Despite the decline in sales, average gross margin widened by 100 basis points, or 1.0 percentage point, to 36.0 percent from 35.0 percent a year ago. Gross margin dollars, hurt by the decline in sales, fell by 3.7 percent, to $36.9 million from $38.3 million.
In a lift to the bottom line, costs were cut by 3.5 percent, to $35.7 million from $37.0 million last year, generating a cash savings of $1.3 million.
Hanover Direct Inc.
|Qtr. 3/29 (x0000||2003||2002||% Change|
a-First-quarter results include a special charge of $277,000, compared with $233,000 last year; a $1.9 million gain on the sale of its Improvements business; a $15,000 provision for state income taxes vs. $30,000 a year ago. Including the payment of preferred stock dividends and accretion, the net loss applicable to common shareholders totaled $3.4 million, or two cents a share, down from $4.7 million, or three cents a share the year before.
|Oper. income (EBIT)||21||(194)||—|
|Per share (diluted||(0.02)||(0.03)||—|
|Average gross margin||36.0%||35.0%||—|