Private investment firm Comvest Partners acquires the financially troubled e-retailer, which filed for Chapter 11 bankruptcy protection in March.
Sales for AG Interactive dropped 1% while total revenue fell 2.3%.
E-commerce sales declined slightly for the third quarter and also remain weak year to date for fiscal 2011 for American Greetings Corp.
For the third quarter of fiscal 2011, ended Nov. 26, American Greetings, No. 160 in the Internet Retailer Top 500 Guide, reported:
- Sales for AG Interactive, the company’s e-commerce business unit, declined 1% to $19.2 million from $19.4 million in the third quarter of fiscal 2010.
- Total revenue declined year over year 2.3% to $430.1 million from $440.2 million.
- Net income increased 8.4% to $32.2 million from $29.7 million.
“During the fourth fiscal quarter, we will face the traditional risk of Christmas and Valentine’s Day holidays, and this year we face the additional uncertainty of the pace of the economic recovery, which makes consumer buying patterns more difficult to predict,” says CEO Zev Weiss. “We believe our refined business portfolio, along with the changes we have made to our capital structure over the last several years, position the company well for the opportunities and challenges ahead.”
Internet Retailer calculates the web accounted for 4.5% of total sales compared with 4.4% in the third quarter of fiscal 2010.
For the first nine months of fiscal 2011, American Greetings recorded:
- Sales for AG Interactive decreased 1.1% to $56.1 million from $56.7 million in the first three quarters of fiscal 2010.
- Total revenue declined year over year 4.2% to $1.14 billion from $1.19 billion.
- Net income increased 14% to $71.5 million from $62.7 million in the first three quarters of fiscal 2010.
Internet Retailer calculates the web accounted for 4.9% of total sales compared with 4.8% in the first three quarters of fiscal 2010.