Business News

Hallmark Announces 2008 Results

Monday 23. March 2009 - Hallmark Cards, Inc., today announced consolidated revenue of $4.3 billion for 2008. The consolidated total represents a 2 percent decrease from the previous year's continuing operations in the privately held company's four operating businesses.

Hallmark North America saw positive consumer reaction to recordable cards with sound, peek-buster gift bags and adhesive gift wrap, among other innovations, but finished the year behind 2007, largely due to fourth-quarter economic concerns. The North America operating unit includes greetings, gift wrap, partyware and gifts.

Product innovations such as 3D Sidewalk Chalk and the Color Wonder Magic Light Brush extended Crayola’s key sales opportunities beyond back-to-school, contributing to year-over-year revenue increases for the Hallmark subsidiary.

Hallmark International ended the year flat to 2007 due to weak consumer spending in virtually all countries, and soft hotel business brought slight revenue declines to the Crown Center real estate subsidiary.

“The decline in consumer confidence and spending was felt across all our corporate businesses, particularly in the fourth quarter,” said Donald J. Hall, Jr., president and chief executive officer.

“Pressure on revenues will likely continue in 2009, requiring us to intensify our efforts to reshape our cost structure,” he added. “At the same time, we will continue our focus on and investment in consumer-inspired innovation to ensure that Hallmark emerges from the current economic downturn poised for growth.”

Revenue from publicly held Crown Media, which announced revenue gains in its financial results reporting March 4, also contributed to Hallmark’s consolidated total.