Factory Card Outlet Corp. reported fiscal fourth-quarter profits rose 51 percent, to $2.3 million, or 29 cents per share, from $1.5 million, or 30 cents per share, in the year-earlier period, when fewer shares were outstanding.
But the Bensenville-based supplier of greeting cards and party goods said that Party Express, the party goods division of Hallmark, would no longer ship party goods that include Disney and Warner Bros. licensed products to Factory Card Outlet stores as of Nov. 30.
Factory Card Outlet said this won’t affect its earnings for the current fiscal year, but could impact later results. The company said it is continuing discussions with Hallmark, Disney and Warner Bros.
Factory Card Outlet said sales in the quarter, ended June 28, climbed more than 30 percent, to $40.3 million from $30.9 million.
For the fiscal year, the company reported earnings of $1.7 million, or 26 cents per share, compared with net income of $70,241, or 1 cent per share, in 1996. Results for 1997 include an after-tax charge of $312,886, or 5 cents per share, for early retirement of debt.
Sales climbed 42 percent, to $133.9 million from $94.6 million.
