CafePress Reports 16 Percent Drop in Revenue for 2017
CafePress, Louisville, Ky., released its fourth quarter and fiscal year 2017 financial results, which CEO Fred Durham called "disappointing."
"Our fourth quarter and full year 2017 results were clearly disappointing, as CafePress.com continued to be negatively impacted by lower traffic resulting from changes in search engine algorithms during the first half of 2017," he said in a press release. "The company remains focused on completing the modernization of CafePress.com and demolishing the old site, and will roll out significant portions of the modernization in the first quarter of 2018."
He called these processes "critical" in the effort to compete with the growing number of similar companies, especially as the likes of Walmart and Amazon seek to break into that space.
The company's gross profit was $13.2 million, down 22 percent from $16.8 million the previous year. Also, cost of net revenue per unit rose 5 percent compared to last year, which the company attributes to a shift in product away from "lower cost categories."
CafePress did, however, see growth in its Retail Partner Channel, which exists in addition to its conventional CafePress.com sales outlet for customers to purchase goods from, and noted that operating expenses were down $1.1 million, but reported net revenues at $34.2 million, down 22 percent from $43.7 million.
The company's net revenue, $85.7 million, is a 16 percent drop from the $102.2 million of last year, and gross profit was at $33.2 million, down from $41.8 million.
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