Cimpress executives characterized the Netherlands-based company’s recently concluded fiscal 2019 as a disappointing and difficult year, with revenue at its flagship Vistaprint business increasing less than 1% and profitability declining in its National Pen segment. Cimpress reported it doubled overall net income to nearly $93.5 million, or $3.00 per diluted share, compared to $1.36 per diluted share the prior year.
Cimpress said its full-year revenue rose 6% to $2.75 billion. Fourth-quarter revenue was up 7% to $674.7 million. Net income for the final quarter totaled nearly $33.2 million versus a loss of $5.6 million, in the prior year’s quarter.
The year-on-year growth in net income occurred, in part, because Cimpress cut its Vistaprint advertising spending by $39.6 million, decreased share-based compensation expenses, lowered its spend on compensation to the board of directors by reducing the board’s size, and realized benefits from a change in tax provision and the non-recurrence of a $17.4 million loss on the early extinguishment of a debt, the company said.
For the year, the Vistaprint division increased global revenue by 0.68% to $1.47 billion.
Despite the company-wide gains in sales and income, Cimpress CEO Robert Keane characterized fiscal 2019 as “a turbulent and challenging” year – a reality highlighted by the company removing former Vistaprint CEO Trynka Shineman in January, with Keane assuming the role in addition to his duties as CEO of all of Cimpress.
According to Keane, overall company performance fell short of expectations driven, in part, by weaker-than-hoped-for showings from Vistaprint and National Pen. Despite inching upward for the year, Vistaprint’s revenue was down about 1.5% in the fourth quarter compared to Q4 2018.
In addition to managing costs, Keane wrote more changes are coming to Vistaprint. These include continuing improvements to the technology platform and a revision of the upper management ranks:
Finally, we have recruited three high-caliber executives who will be joining Vistaprint in the coming months: a president of North American operations, a president of international operations and a chief marketing officer. We are also recruiting a chief data officer and have a strong pipeline of candidates for other key roles.