Benzinga  Jun 5  Comment 
CSS Industries Inc (NYSE: CSS) reported Thursday with better-than-expected sales, EBITDA and free cash flow for the fiscal fourth quarter, prompting an analyst at DA Davidson to conclude the stock has bottomed out.  The Analyst Analyst...


CSS Industries (NYSE: CSS) is a consumer products company which makes money by designing, making, and selling seasonal and expressive occasion products. This includes itens such as boxes, greeting cards, ribbons, gift wrap, tissue papaer, Halloween masks, and Easter egg dying kits. CSS sells its products to retail vendors who then distribute the goods to the mass market. CSS Industries focuses on being the single vendor from which retailers purchase all of their seasonal products. The goods are manufactured and packaged in the United States, Mexico, and China.[1] For the full year 2010, CSS Industries reported a total revenue of $448M and a net less of $24M.[2]

The goods that CSS makes are inherently seasonal. This means that the company must efficiently manage hiring a large group of temporary workers in order to increase production. On average, CSS doubles its total employees during the season. This poses an operations challenge to assure that the seasonal employees become trained quickly and efficiently.[3] In addition, this seasonality poses risks to the businesses revenue. A poor season or a decrease in consumer spending may not make up for the high costs CSS Industries incurred to create the seasonal inventory. [4]


  1. CSS 10-K 2010 Business "General" pg1-2
  2. CSS 10-K 2010 Business "Selected Financial Data" pg13
  3. CSS 10-K 2010 Business "Employees" pg4
  4. CSS 10-K 2010 Business "Risk Factors" pg4-6
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