CafePress Sales Drop Dramatically After Election Season
We already know how integral promotional products were for the 2016 presidential election. Between the caps, buttons, shirts, bumper stickers, drink coolers, pocket constitutions and everything in between, promotional products suppliers and distributors had their hands full.
And now, companies like CafePress, which churned out a heap of campaign merchandise, is feeling a bit of a hangover now that the election is over.
Insider Louisville reported that yesterday, Louisville-based CafePress's first quarter earnings fell, with share prices down 11 percent by yesterday morning.
First-quarter net revenue fell 1.2 percent compared to the same time last year to $18.3 million. Cost of sales increase 6.4 percent, but gross profit fell 11.6 percent. Overall, the company reported a net loss of $3.4 million, which is 13 percent worse than the loss it reported a year ago.
CafePress CEO Fred Durham noted that the loss was partially due to the cut-throat nature of the competitive e-commerce world, but it was a combination of that and "more challenging comparisons from the presidential primary season a year ago."
To make up for the loss, however, a spokesperson for CafePress told Insider Louisville that it released new mugs and phone cases, including those designed for the newest iPhone and Galaxy smartphones.
So, when someone asks about the importance of promotional products during events like elections, this is a pretty good case study to give.