In its second-largest acquisition, Amazon buys the company for $970 million.
In Q1 e-commerce sales slip 10.2% as total revenue grows 1.5%.
Total sales for American Greetings Corp. rose slightly in the first quarter of fiscal 2012, but revenue headed in a different direction for AG Interactive, the company’s e-commerce arm.
For the first quarter of fiscal 2012 ended May 27, American Greetings, No. 187 in the Internet Retailer Top 500 Guide, reported:
- Sales for AG Interactive declined 10.2% to $16.7 million from $18.6 million in the first quarter of fiscal 2011.
- Total sales grew year over year 1.5% to $402.3 million from $396.3 million.
- Net income for AG Interactive declined 2.5% to $2.31 million from $2.37 million.
- Net income for the parent company grew year over year 5.8% to $32.6 million from $30.8 million.
“Despite the continuing erratic economic environment, we achieved a record level of earnings per share in the first quarter driven by the combination of the changes we made to our portfolio of businesses in recent years, our growing market share in North America, and the continuation of good expense management,” says CEO Zev Weiss.
Internet Retailer calculates the web accounted for 4.2% of total sales compared with 4.7% in the first quarter of fiscal 2011.