Hallmark Announces 2009 Results

News provided by

Mar 09, 2010, 05:30 ET

KANSAS CITY, Mo., March 9 /PRNewswire/ -- Hallmark Cards, Inc., today announced consolidated revenue of $4.0 billion for 2009. The consolidated total represents an 8 percent decrease from the previous year's continuing operations.

Hallmark North America, the company's largest segment of the business which includes greetings, gift wrap, partyware and gifts, finished the year behind 2008 largely due to the economic downturn. However, consumers did react positively to such favorites as recordable cards with sound, Keepsake Ornaments and innovations like Recordable Storybooks.

The introduction of innovative new products also led to revenue gains at the company's Crayola subsidiary. New products such as the Crayola Color Wonder Magic Light Brush, named Activity Toy of the Year by the Toy Industry Association, have helped Crayola expand sales outside the back-to-school season and grow shelf space with top retailers such as Walmart.

"Even with the global economic challenges, consumers respond when they are presented with innovative products they find valuable and meaningful," said Donald J. Hall, Jr., president and chief executive officer. "Our newly organized North America organization, structured around product platforms based on consumer needs, will help us generate a broader array of connecting solutions that will make a bigger impact in the marketplace."

Hallmark International also finished the year with positive revenue gains while Crown Center fell behind 2008 due to soft hotel and convention business in Kansas City.

"2009 was one of the most challenging in Hallmark's 100-year history," Don added. "Those challenges led us to take the difficult actions to permanently reshape our cost structure and boldly pursue a new strategy to generate growth.

"The results of these efforts – a more competitive cost structure, a stronger innovation engine, more efficient and effective work processes and a sharpened focus on our consumers – have put the company in a stronger position to compete in 2010 and beyond."

Revenue from publicly held Crown Media, which reported financial results March 4, also contributed to Hallmark's consolidated total.

About Hallmark Cards, Inc.

Hallmark makes the world a more caring place by helping people express what's in their hearts and spend time together – a privilege few other companies in the world enjoy. Hallmark greeting cards and other products are found in more than 41,000 retail outlets in the United States, including the network of flagship Hallmark Gold Crown® stores. The brand also reaches people online at Hallmark.com, via cell phone at Hallmark Mobile Greetings, and on television through Hallmark Hall of Fame original movies and cable's top-rated Hallmark Channel. Worldwide, Hallmark offers products in more than 30 languages available in 100 countries. This privately held company is based in Kansas City, Mo., and in its 100th year is led by the third generation of the founding Hall family.

Visit http://corporate.hallmark.com and http://www.hallmark.com/100years for more details.

SOURCE Hallmark Cards, Inc.