Business News

Hallmark Reports Increase in 2007 Revenues and Earnings

Tuesday 01. April 2008 - Citing growth in each of its four operating businesses, Hallmark Cards, Inc., today announced its 2007 worldwide consolidated net revenue totaled $4.4 billion, an eight percent increase from the previous year's continuing operations.

Hallmark North America and Crayola led the revenue gains, each with seven percent growth over 2006. Combined, the privately held company’s four operating businesses also reported double digit earnings growth over the prior year.

In releasing 2007 results, Hallmark president and CEO Donald J. Hall, Jr., reconfirmed the importance of product innovation and attention to consumer insights.

“Listening to consumers, identifying new insights from those consumers and translating those insights into new products and services are essential for success in this competitive marketplace and difficult economy,” Hall said. “All of our businesses are embracing this approach and we expect a continued focus on product innovation in our core businesses will ensure our long-term success.”

Operating business highlights

Hallmark North America, which includes greeting cards, stationery, gift wrap, ornaments, partyware and gifts in the United States and Canada, saw a seven percent gain over 2006. Enthusiastic consumer response to Cards With Sound, Cards With Motion, expanded humor card lines, and Hallmark (PRODUCT) RED(TM) products led the growth.

Hallmark International posted a three percent revenue increase. A new supplier agreement with Wal-Mart’s U.K. subsidiary, ASDA, along with continued momentum in other markets, resulted in the revenue gain.

Revenue gains derived from year-round innovative product launches, combined with strong performance during the back-to-school season, resulted in a seven percent revenue increase for Crayola. Strong back-to-school sales at key retailers such as Wal-Mart, Walgreens, Office Depot and Toys ‘R’ Us helped Crayola deliver its third consecutive year of record-setting sales.

At real estate subsidiary Crown Center, improved hotel occupancy rates and downtown revitalization efforts contributed to a three percent revenue increase.

Revenues from publicly held Crown Media, which issued its full-year report March 12, also contributed to the consolidated total.