Hanover Direct focuses on three core brands
Staff -- Home Textiles Today, 5/16/2002 12:00:00 AM
Weehawken, NJ — While Hanover Direct is still mindful of its bottom line and expenses after last year's restructuring, it will continue to invest in its three core brands and also look for other growth opportunities in brand extensions and partnerships with Internet companies, Tom Shull, chairman, president and ceo, said at today's annual meeting of shareholders.
In the past, Hanover had spread its brand equity too thin with too many businesses, said Shull. Hanover is now firmly focused on investing in its three core brands of The Company Store, Domestications and Silhouettes.
Each of those brands has strong product development capabilities. For example, 90 percent of The Company Store's merchandise is proprietary, while at Domestications it is at 73 percent. The turnaround at Domestications has been well-received under Farley Nachemin's direction, Shull added, and sourcing will be a key element of that in the future.
In addition, the Internet is currently 20 percent of sales, he said, and it's on track to do more than $100 million in the future.
With the elimination of non-profitable businesses and facilities, Hanover Direct will also continue its brand extension. The Company Store also launched Company Kids, which is ahead of plan by more than 30 percent, Shull said. "I think it can be a dominant player as it relates to kids."
It won't be the only catalog focused on that market, as Shull added the company is planning to launch a catalog titled Baby Gump's later in the year.
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