Cimpress N.V., the parent company of Vistaprint, reported sales of $436.8 million in the company’s fiscal third quarter, an increase of 29% from the same period last year. The company also reported 8% growth for Vistaprint in the third quarter for a total of $289.9 million. Promotional product sales and other categories, including marketing materials, signage and apparel, increased faster than average unit growth.
“The Vistaprint Business Unit continues to strengthen as a result of the many changes and investments we’ve made over the last several years,” said Sean Quinn, senior vice president and CFO. “We’re optimistic about the progress we’re making toward our aspiration of returning the Vistaprint business to double-digit revenue growth, which we achieved this quarter, but expect to fluctuate as we continue to make further investments that we believe will improve the value proposition to Vistaprint customers, often at the expense of higher near-term revenue and profit.”
The Vistaprint unit accounted for 66.4% of Cimpress’ total revenue. (Cimpress is comprised of a collection of printing companies in Europe and elsewhere.) In the company’s Q3 earnings call, Cimpress CEO Robert Keane said that multiple orders from repeat online buyers drove Vistaprint sales. And for the first time in 10 quarters, the number of new customers remained flat year over year, instead of declining.
Vistaprint has also offered reduced-cost shipping offers in 2016, first in the United Kingdom and now in the U.S., France and Germany. “The shipping price changes and tests to date have modestly hurt near-term revenue growth and profits in Q3, and are likely to do so to a greater degree in the next several quarters, but should preserve or increase the long-term value of our business,” said the company in its quarterly earnings presentation.