Sales are growing for Cimpress (asi/162149), but the Top 40 distributor has experienced a net loss through the first nine months of its fiscal year.

The Dundalk, Ireland-headquartered company, which is parent company of Vistaprint and former Top 40 firm National Pen (asi/281040), reported on April 26 that its total global third-quarter sales increased 13% compared to the prior year’s Q3 to about $742.2 million. Through the first three quarters of the fiscal year, Cimpress’ revenue was up about 6% year over year, tallying $2.29 billion.

Robert Keane, Cimpress

Nonetheless, Cimpress has experienced a loss of about $214.8 million, or -$8.19 per share, during the first nine fiscal year months, which concluded March 31. That was a bigger loss than in 2022, when through the first three quarters the firm posted a loss of $23.7 million, or -$0.91 per share.

Still, the picture brightened a bit in Q3 2023: Loss per share was -$1.88 this year, compared to -$2.75 in the prior year’s Q3. Net loss this year was $49.3 million, an improvement over the nearly $72 million loss in Q3 2022.

In a financial update to investors, Cimpress said reasons for the loss despite the sales rise include an almost $27 million increase in restructuring expenses, increased interest expenses, and a year-over-year impact from the net effect of realized currency gains and unrealized currency losses.

Vistaprint & National Pen Performance

Cimpress’ flagship business segment is Vista, which includes Vistaprint, the e-commerce-driven seller of print and promo products. Vista segment revenue in Q3 rose 14% year over year to $396.6 million – a jump helped by increased orders from new and repeat customers, as well as charging higher prices.

Cimpress didn’t break out Vista’s promo sales in particular but said that on a global basis “promotional products, apparel and gifts was our fastest-growing product category, with business cards, marketing materials, packaging and labels, and signage all showing strong year-over-year growth as well.”

Through the first nine months of fiscal 2023, Vista’s total global revenue is up 5% to $1.2 billion.

Meanwhile, National Pen posted third-quarter North American promo revenue of $50.9 million, with year-to-date sales registering $162.2 million, according to Meredith Burns, Cimpress’ vice president of investor relations and sustainability.

Total global sales – which include North American and international business – for National Pen were up 12% in Q3 to about $81.1 million. For the first nine months, National Pen’s total global sales have risen about $17 million to $283.4 million. Notably, National Pen’s sales include both its distributor business and revenue from supplier firm Goldstar (asi/73295), which is under the National Pen umbrella, Burns said.

Cimpress CEO Robert Keane is optimistic about the future of the publicly traded company.

“We believe,” Keane said, “that many of the investments we have made over the past few years have given us the talent, capabilities and competitive advantages to significantly improve the value that we deliver to our customers.”