Hallmark Completes a Successful 2019 and Undergoes Business Transformation Plans

KANSAS CITY, Mo. (Jan. 6, 2019) – Kansas City-based Hallmark Cards, Inc., which operates its global businesses under the Hallmark and Crayola brands, saw positive performance across the enterprise in 2019. Hallmark’s greeting card business increased distribution through a combination of expanding business with existing retail partners and working with new retailers. Company-owned Hallmark Gold Crown stores experienced positive comparable stores growth. Crown Media had another strong year with revenue growth in both its traditional cable and growing streaming service. Crayola saw solid revenue gains, continuing to adapt its offerings to meet consumer needs.

“Our success in 2019 reflects the power of the 100 plus year-old Hallmark and Crayola brands and their relevancy in the lives of our consumers. While there is a lot to feel good about, it is no secret that today’s companies must continuously transform in response to the rapidly evolving retail and consumer environments. The way people shop and the competitive dynamics in the marketplace are changing at a pace and at a degree that is having a significant impact on our businesses,” said Mike Perry, president and chief executive officer, Hallmark Cards, Inc. “As we open 2020, we have a clear line of sight to the transformational work that needs to be accomplished and these efforts will lead us on a path that will enable us to realize the longer-term vision and mission we have for our business.”

This transformation includes actions to reduce the size of the current global workforce for Hallmark’s greeting card business, retail business and corporate support functions. Perry announced to employees this week that the company is taking voluntary and involuntary actions that will impact approximately 400 of the company’s 30,000 employees around the world. Most impacted employees will be notified in the coming days. Hallmark is offering severance and transition assistance, and employees will have an opportunity to apply for new positions.

“These changes, while not easy, will enable us to invest in new growth strategies that will ultimately help us realize our future vision. The products and content we create make a positive difference in the world. To be able to help others, and to build an enduring business, we must change.” said Perry. “Our efforts will be ongoing and by transforming the way we work, the way we go to market, and the way we serve our customers, we will be enabling our business to thrive and fulfill the promise of our brand.”