While fourth quarter net revenue increased at CafePress, the online retailer of stock and user-customized products experienced an overall decline in revenue and gross profit margin in 2016, according to an earnings statement released Tuesday. Based in Louisville, KY, CafePress reported that full-year revenue dropped 4.6% to $102.2 million, while gross profit margin tallied 40.9% of net revenues, down from 41.1% in 2015. Total orders increased 7.1% to 3.1 million for 2016, but average order value eroded nearly 10% to about $33. “2016 was a year of inflection for CafePress, as years of revenue decline in the core business slowed quarter over quarter and returned to growth,” said CafePress CEO Fred Durham.

In one of the positive developments that Durham alludes to, fourth quarter revenue rose 7.5% to $43.7 million over the same period the prior year. Meanwhile, non-GAAP adjusted earnings from continuing operations (before interest, tax, depreciation and amortization) increased 18.2% to $4.9 million. CafePress noted that the non-GAAP adjusted EBITDA benefited favorably by $1.8 million related to a $1.2 million reversal of escheatment and other tax liabilities, as well as the $0.6 million impact from a change in its paid-time-off policy. “We are proud to report year-over-year revenue growth in the fourth quarter, capping a successful year that demonstrates the steady progress we are making,” said Durham.

Nonetheless, CafePress’ fourth quarter wasn’t a slam dunk: Gross profit margin of net revenues, for example, slipped from 41.4% in Q4 2015 to 38.4% last year. "While we believe we were a bit too aggressive in our pricing strategy during the fourth quarter when holiday demand was strong, we are actively assessing how to optimize pricing across CafePress.com and retail partner channels,” Durham said.

In additional reporting on its full-year performance, CafePress said that net loss from continuing operations was $26.5 million, or $1.58 per diluted share, which included a one-time non-cash impairment charge on goodwill. Non-GAAP adjusted EBITDA fell off a cliff, plummeting 61.6% to $1.5 million. Going forward, CafePress is optimistic about a brighter future. “Our investments in core systems have allowed us to better optimize our customer acquisition efforts and customer experience,” Durham said. “From this base, we look forward to re-energizing the consumer experience and making CafePress an even better place to shop."