Hallmark Cards Inc. on Friday said its 2012 consolidated revenue dropped 2 percent to $4 billion, partly the result of cautious consumer spending for greeting cards and Crayola products.
By STEVE ROSEN
The Kansas City Star
The Kansas City-based company reported revenue declines in its greeting card, international and real estate units, and flat results in its Crayola subsidiary.
The company’s Crown Media Hallmark Channel and Hallmark Movie Channel business posted an 8 percent increase in total revenue.
Privately owned Hallmark, which has 3,200 full-time employees at its Crown Center headquarters, does not release earnings.
In 2011, Hallmark generated $4.1 billion in revenue, which was flat compared with 2010.
Donald Hall Jr., Hallmark’s president and chief executive officer, acknowledged that 2012 fell “slightly short” of expectations, but he remained optimistic about the long-term outlook for the nation’s largest greeting card company.
“We have two of the world’s most trusted brands in Hallmark and Crayola, strong relationships with many of the world’s top retailers and a branded entertainment network that is reaching a growing number of consumers’ homes,” Hall said.
Hallmark’s 2012 results noted the following:
• Revenue fell 3 percent at Hallmark North America, which sells greeting cards, gift wrap, partyware and gifts. “Cautious consumer spending” contributed to the sales dip, the company said, but reaction was positive to several greeting card innovations.
• Sales were flat in the Crayola subsidiary, although business was strong during the back-to-school season.
• Revenue dipped 3 percent in Hallmark’s international business because of the “challenging business environment” in the United Kingdom and Australia.
• Revenue declined 6 percent in Hallmark’s Crown Center real estate subsidiary because of soft hotel bookings.
On the other hand, a stronger lineup of original programming helped generate stronger ratings for the Hallmark Channel and the Hallmark Movie Channel. Crown Media, the publicly traded company primarily owned by Hallmark, reported an 8 percent increase in total revenue.