Advertisement

Archive for Friday, March 3, 2006

Hallmark posts flat revenue

Kansas City-based company cites investments, sales of subsidiaries

March 3, 2006

Advertisement

Hallmark Cards Inc. reported consolidated revenues of $4.2 billion last year, a $200 million decline that the Kansas City, Mo.-based company attributed to the shedding of a portrait subsidiary and Crown Media's international business.

When considering only the firm's current businesses, Hallmark said, last year's revenues were flat compared with 2004.

Profits also were down for the year, as Hallmark invested in "improving the environment" of 4,000 Hallmark Gold Crown retail stores, said Julie O'Dell, a Hallmark spokeswoman. The company also cited investments in distribution, and a "challenging retail marketplace," as contributing to the profits decline.

Revenues for Hallmark North America, which includes 400 company-owned stores and the company's wholesale business, also were flat compared to 2004, Hallmark said.

Hallmark has a 650,000-square-foot production plant at 101 McDonald Drive in Lawrence, with 700 employees who make greeting cards, ribbons, bows and stickers. In January, the company announced the plant would be gaining up to another 125 employees beginning in April, as Hallmark would be ending card production at a plant in Leavenworth.

The plant last year produced 530 million cards. It makes all of Hallmark's Shoebox line of cards and handles many special orders, including the annual White House holiday card.


Hallmark Gold Crown cards are on display at Audrey's Hallmark in Lawrence. Hallmark Cards Inc. said Thursday its 2005 sales stayed flat at $4.2 billion when adjusted for two subsidiaries it has sold. The nation's largest greeting cards maker also said annual profits were down as the company continued pouring money into updating Hallmark Gold Crown stores.

Hallmark Gold Crown cards are on display at Audrey's Hallmark in Lawrence. Hallmark Cards Inc. said Thursday its 2005 sales stayed flat at $4.2 billion when adjusted for two subsidiaries it has sold. The nation's largest greeting cards maker also said annual profits were down as the company continued pouring money into updating Hallmark Gold Crown stores.

Two subsidiaries posted gains. Revenues at Binney & Smith - maker of Crayola crayons and Silly Putty - were up 5 percent, and the Crown Center retail complex in Kansas City, Mo., had an increase of 3 percent, said Julie O'Dell, a Hallmark spokeswoman.

Revenues were down for Hallmark Entertainment, which the company sold earlier this year, and flat for Hallmark International.

Donald J. Hall Jr., president and chief executive officer, said Wednesday that Hallmark remained committed to the company's branded personal expression businesses.

As a privately held company, Hallmark is not required to report detailed financial results.

"We made significant investments in product development and the Hallmark Gold Crown channel in 2005, and those will continue in the coming year," Hall said in a statement. "We will continue to make investments in our product, brand and distribution in order to ensure long-term success."

Comments

Use the comment form below to begin a discussion about this content.

Commenting has been disabled for this item.