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CPI Card Group Inc. posted $444.5 million in net sales in 2023, a 7% decrease from 2022. The card and payments solutions provider saw an even larger drop during the fourth quarter, posting net sales of $102.9 million, a 19% year-over-year decrease.
CPI attributed the declines to cautious consumer spending, which prompted card issuers to focus more on managing inventory levels than issuing new cards.
Net debit and credit sales totaled $361.1 million in 2023, an 8% decline from 2022. The decline is primarily due to lower volume in eco-focused contactless cards, compared to significant orders in 2022 and lower contact card sales, CPI says. Prepaid debit segment net sales decreased 2% to $84.2 million.
During the fourth quarter net debit and credit sales totaled $82.1 million, a 22% decrease from the same period in 2022. CPI attributed the decline primarily to decreasing card volumes. Prepaid debit segment net sales decreased 5% year-over-year to $21 million during the quarter.
Fourth quarter sales were similar to third quarter levels and largely in line with what CPI anticipated.
“Fourth quarter business trends were largely in-line with expectations, as customers continued to prioritize managing inventory levels,” CPI chief executive John Lowe says in a statement. “We believe card issuance trends to consumers remain healthy and we will continue to focus on gaining market share through innovative solutions and leading customer service and quality.”
Lowe was named president and CEO in January, succeeding Scott Scheirman, who previously announced his intent to retire in early 2024.
Looking ahead, while CPI anticipates cautious customer spending to continue into 2024, it expects consumer spending to gradually increase throughout year. As a result, the company is initially forecasting a slight increase in net sales for 2024.
