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Cimpress plc CMPR has been benefiting from strength across its Vista, National Pen and Upload & Print segments. Significant growth in the e-commerce channels is driving the National Pen segment while increasing order rates are proving beneficial for the Upload & Print segment.
The company’s focus on improving customer experience and new product introductions is aiding its Vista segment. The segment is poised to benefit from the seasonal peak in consumer volume in the fiscal second quarter (ending December 2024).
In the first quarter of fiscal 2025, (ended Sept. 30, 2024) the Vista segment’s revenues grew 8.2% year over year. In the same quarter, the Upload & Print segment’s revenues rose 5% year over year while National Pen revenues increased 8%.
The scale of Cimpress’ operations gives small business customers access to quality products and printing services, which would otherwise have been out of reach. The company has expanded its product line to include a wide variety of offerings for customers' marketing needs. Also, the PrintBrothers' businesses continue to adopt technologies that are part of the CMPR’s mass customization platform.
CMPR remains focused on cost-control measures that have been aiding its margins and profitability. In the fiscal first quarter, its gross profit increased 6.4% year over year to $382 million. The margin was 47%, which remained relatively stable year over year.
CMPR Stock’s Price Performance
Image Source: Zacks Investment Research
In the past year, this Zacks Rank #3 (Hold) company’s shares have gained 5.2% compared with the industry’s 42.5% growth.
However, the company has been witnessing the adverse impacts of the high costs and operating expenses. In fiscal 2024 (ended June 2024), its cost of revenues increased 3.3% due to rising costs for product substrates like paper, production materials like aluminum plates, freight and shipping charges, and energy costs.
Also, in the first quarter of fiscal 2025, the cost of revenues increased 6% on a year-over-year basis due to rising production and shipping costs. General and administrative expenses rose 7.5% year over year in the quarter due to higher travel and training costs and consulting spending.
High debt levels also remain concerning for the company. Exiting first-quarter fiscal 2025, its long-term debt was high at $1.6 billion. Considering its high debt profile, its cash and cash equivalents of $153 million do not seem impressive.
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