Hallmark reports flat sales for the year | VailDaily.com
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Hallmark reports flat sales for the year

KANSAS CITY, Mo. – 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 continues pouring more money into renovating its line of Gold Crown stores. A spokeswoman for the privately held company wouldn’t say how much earnings had declined.”We will continue to make investments in our product, brand and distribution in order to ensure long-term success,” Donald Hall Jr., the company’s president and chief executive, said in a news release.Hallmark, based in Kansas City, does not issue quarterly earnings reports or financial statements. But it does report some information in February or March comparing the prior year’s performance with that of the previous year.Hallmark reported 2004 revenues of $4.4 billion. But the company said it lost about $200 million in sales that year when it sold The Picture People, a chain of child-centered portrait studios, and the international part of Crown Media Holdings Inc., which owns and operates the Hallmark Channel on cable.On the positive side, the company said its Binney & Smith subsidiary, which includes the popular Crayola and Silly Putty brands, saw a 5 percent increase in revenue on strong back-to-school sales, while its Crown Center hotel and retail complex in Kansas City saw revenues rise 3 percent.But sales for the company’s domestic personal expression unit – which includes greeting cards, gift wrap, stationery, ornaments, party ware and gifts- and for its International Division – which handles overseas sales – were flat for the year.Revenue for Hallmark Entertainment Inc., which develops and produces made-for-television movies and miniseries, was also down. Hallmark sold Hallmark Entertainment in January.Hall last May told a Kansas City business group that the company was trying to revamp the look and products in its more than 4,000 Gold Crown stores as it attempts to separate itself from similar retailers.Vail, Colorado


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