American Greetings posts 3rd-quarter loss
Clinton Cards acquisition drags on American Greetings, and card seller posts 3rd-qtr loss
CLEVELAND (AP) -- Greeting card and gift seller American Greetings Corp. said Thursday that it posted a loss in its most recent quarter because of costs related to its Clinton Cards stores, which it purchased out of bankruptcy in June.
In the three months that ended Nov. 23, the company posted a loss of $809,000, or 3 cents per share, compared with a year-ago profit of $20.2 million, or 50 cents per share. Costs associated with the 400 Clinton stores, which are in the U.K., resulted in charges of 30 cents per share.
Revenue rose 9 percent in the fiscal third quarter to $499.4 million from $458.5 million. Clinton Cards added $42.1 million in revenue.
Shares fell 56 cents, or 3.3 percent, to $16.64 in midday trading.
Besides American Greetings, the company, which is based in Cleveland, makes Carlton Cards, Gibson, Recycled Paper Greetings and Papyrus greeting cards.
