AG Interactive posts 13% decline in year-over-year Q3 sales

AG Interactive, which operates the e-commerce business for greeting card maker American Greetings Corp., posted $18.9 million in Internet sales for the third quarter of 2008, down 13% from $21.7 million in the prior year quarter, according to the company’s recent Securities and Exchange Commission filing.

For the quarter, ended Nov. 23, 2007, AG Interactive reported about $2.2 million in pre-tax income, about the same as $2.2 million in the prior year quarter.

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American Greetings, No. 150 in the Internet Retailer Top 500 Guide, reported overall Q3 revenue of $485.7 million, down 7% from $521.2 million in the prior year quarter. Pre-tax income was $44.5 million, down 35% compared with $68.1 million in Q3 of fiscal 2007.

The company notes in the filing that Q3 2007 results included a $20 million pre-tax gain from retailer consolidations and the effect the consolidations had on long-term supply agreements between the company and the affected retailers. The prior year’s third quarter also included approximately $14 million in revenue associated with product lines that have since been divested.

For the nine months ended Nov. 23, online sales were $56 million, a 10% decline from $62 million in the same period of the prior fiscal year. Income for AG Interactive was $8.7 million, up 58% from $5.5 million in the same period last year.

Sally Babcock, AG Interactive’s senior vice president/general manager will speak at the Internet Retailer Web Design ’08 Conference, Jan. 30-Feb. 1 in Miami, in a session titled How to keep a design fresh.