Wednesday, June 11, 2008

Russ Berrie Q1 2008: Shining Stars Slows Down; SeaPals Important for 2008

It also seems like it's going to be pretty cost effective for Russ.
When asked about expensing the websites, Crain responded that "We
normally capitalize the websites but its non-material costs. We’re not
spending more than $200,000 or so on Sea Pals, but it’s normally

Here Now: Shining Stars

Shining Stars launched with strong success last year, doing $4
million of business in Q2 of last year according to investors. Crain
even explained that the company limited its other launches to focus on
the new product.

"I think we’re feeling quite comfortable that Shining Stars will be
a very, very important part of the business mix this year," said Crain.
"It just can’t or won’t repeat at the same levels."

It seems like that's the case. Dave Thomas of Blue Sky Asset
Management cited numbers showing a decline from a peak of about 450,000
unique users in the first quarter to 157,000 compared to Webkinz which
grew since January from five million to alomst six million.

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