Momentum Builds for Hallmark’s Portfolio of Businesses
Hallmark’s strong performance in 2016 delivered consolidated revenues of approximately $4 billion for its portfolio of businesses – Crayola products, cable television, greetings, home and gifts, retail stores, and real estate development – and positioned the family owned company favorably for continued growth.
“Hallmark’s success is grounded in its ability to build enduring businesses and unique customer experiences around well-known, trusted brands,” said Hallmark’s Chief Executive Officer, Don Hall. “Hallmark has made significant shifts in our portfolio to create a more profitable mix of revenue, and is focusing on efficiency and fueling innovation across our businesses.”
In 2016, Crayola capitalized on the adult coloring trend, recorded its traditional strong sales from back-to-school shopping, and opened its third Crayola Experience attraction in the prominent location of the Mall of America in Minneapolis. Crayola then recently unveiled it would be opening its fourth location in the Dallas market in 2018, with its Crayola Experiences offering 25 hands-on activities throughout 60,000 square feet of creative space.
Crown Media Family Networks, which operates the Hallmark Channel and the Hallmark Movies & Mysteries Channel, was taken private in 2016 and is now a wholly-owned subsidiary that provides a strong extension to the Hallmark brand. The Hallmark Channel continued to expand its seasonal programming beyond “Countdown to Christmas” and Hallmark Movies & Mysteries Channel expanded its offering of original new mystery programming.
Hallmark’s global greetings business, with distribution in more than 100 countries, focused on innovation and in-store service. This helped to boost the success of its greeting cards and gift wrap products as the company is seeing consumer preferences continue to shift toward premium products such as Hallmark’s Signature card line. Retailers are shifting toward the company as well; Hallmark secured more than 20 new customer contracts or contract renewals in 2016.
In its first full year of operation, Hallmark Home and Gifts invested in creating distinct new products and secured distribution in approximately 2,400 rooftops. The business also developed the Plum and Punch brand aimed at mid-priced gift stores.
In the retail business, ornament sales were strong and new digital advancements improved the customer experience thanks to an expanded selection of products offered online as well as the ability to buy online and pick up products in many Hallmark Gold Crown stores. Retail also won new distribution in more than 70 new rooftops last year, placing Hallmark Gold Crown departments within other successful retail outlets.
Crown Center, Hallmark’s real estate development business oversees an 85-acre complex that welcomes 5 million guests annually. It maintained strong hotel performance for its Westin and Sheraton properties, hosting nearly 1,400 events amid a competitive downtown market. It also secured renowned architecture firm BNIM as a new tenant.
Crown Center also entered into an agreement with Milhaus, an Indianapolis real estate developer, for the construction of residential housing and commercial space on the south end of the Crown Center campus. The project will feature a 361-unit apartment community and 7,500 feet of ground-floor retail space. This continues Hallmark’s long-standing tradition and commitment to developing the downtown area, which dates back to the 1950s with the birth of the Crown Center complex.
“We are poised for long-term growth this year with a diversified portfolio of businesses,” Hall said. “We’re committed to continued investment in our brands and businesses to capitalize on the opportunities ahead.”
