The Reason For The Stagnation Of CafePress
CafePress should be doing extremely well at this time. This CafePress Review will shed light on their revenue growth and performance.
An interesting an intense presidential campaign is currently taking place. Since we are in the final three months of this event, we can expect its buzz to increase on social media. Facebook users are eagerly awaiting the comments from the supporters on both sides. The discussions between friends and family members will be very interesting to say the least.
The printing specialist CafePress should be pulling in a ton of revenue at this time. Most of their clients – who are retail shop owners – should be taking advantage of this opportunity by selling politically-engaged merchandise with awesome designs and axioms.
Unfortunately, CafePress doesn’t seem to be benefiting from this event because their performance on the market is dismal.
The share price of CafePress plummeted on Tuesday after they reported poor earnings for the quarter. During this time, their share price increased by $0.10 and their earnings increased by 26%. This is not such a surprise since CafePress is one of several companies in the printing and merchandising business.
In the third quarter, they expect their share price to increase by 5 to 7 cents. This equates to an increase in revenue from $42.5 million to $45 million. Wall street analysts were expecting more from this company, especially during an election year.
These expectations are truly surprising because a presidential campaign should increase their profits by leaps and bounds.
The CEO admitted to having weak sales on their politically-focused merchandise. How could this possibly happen during an election year? Is CafePress failing in the marketing department or is their merchandise just too expensive for the average politically-engrossed consumer?
Maybe the business model isn’t as sustainable as one may think. Anyone can open up a CafePress storefront with ease. Unfortunately, it is a bit challenging to sell merchandise through the shop once it is set up. This may be the reason for the poor market performance and low sales during an election year.
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