The second quarter was another tough one for CafePress
August 19, 2015 12:49 PM
CafePress Inc. continues to cut costs and refocus its e-commerce business as it struggles to turn around falling sales and profits.
But at least through the first half of 2015, CafePress, a customized gifts e-retailer and No. 140 in the Internet Retailer 2015 Top 500 Guide, restoring CafePress to better financial health remains a work in progress.
For the second quarter ended June 30, CafePress reported:
- Total sales declined 25.1% to $21.76 million from $29.07 million in the same quarter last year.
- Net loss was $8.77 million compared with a net loss of $4.32 million.
- Spending on sales and marketing declined 44.1% to $4.19 million from $7.49 million.
- Spending on technology and development decreased 19.1% to $2.79 million from $3.45 million.
- Spending on general and administrative expenses declined 16.5% to $3.19 million from $3.82 million.
- Total orders decreased 17.1% to 608,956 from 734,775.
- Average ticket was $36 compared with $39 in the second quarter of 2014.
In the second quarter CafePress also announced the company was moving its San Francisco operation to a smaller office. The company spent $506,000 on what it calls restructuring costs including paying an early lease termination fee of $300,000 to move to a smaller California facility and $200,000 in severance compensation to an unidentified number of laid-off employees, CafePress notes in its latest quarterly earnings report filed with the U.S. Securities and Exchange Commission.
Since the start of the year CafePress has sold off a business in an effort to streamline its operations and get more focused on its personalized and customized products businesses. In the first quarter CafePress sold its art business to Circle Graphics Inc., a Colorado-based printing company, for approximately $31.5 million in cash.
For the first half of the year CafePress continued to struggle with sales but did show an uptick in profits.
- Total sales declined 18.6% to $45.34 million from $55.71 million in the first six months of 2014.
- Net income was $3.40 million compared with a net loss of $9.13 million.
- Spending on sales and marketing declined 36.1% to $9.61 million from $15.03 million.
- Spending on technology and development decreased 10.5% to $5.98 million from $6.68 million.
- Spending on general and administrative expenses declined 18.5% to $6.34 million from $7.78 million.
- Total orders decreased 11.6% to 1.22 million from 1.38 million.
- Average ticket was $36 compared with $40 in the first two quarters of 2014.
“We believe that the core CafePress business was still alive, buried inside the complexity of the consolidated company,” CEO Fred Durham told analysts on the company’s recent earnings call. “We are delivering on our commitment to restore and stabilize profitability through focus, improved operation, smarter marketing and better product mix.”