Crown Crafts Grows Net in Fourth Quarter

GONZALES, La.-Fourth-quarter net income for Crown Crafts totaled $2.3 million, reversing a net loss from last year's fourth quarter of $10.6 million.

The loss posted in the fourth quarter of last year included a $12.6 million charge related to impairment of goodwill. Absent this charge, Crown Crafts' net income was $2 million in that period.

The company's net sales for the quarter was $26 million, up 5.7 percent from last year. Its gross margin tacked on 290 basis points to finish the quarter at 27.4 percent. E. Randall Chestnut, president and chief executive officer, said the "strong finish" to its 2010 fiscal year owed to "appropriate adjustments to our cost structure" in the face of last year's weak retail economy--which enabled Crown Crafts to maintain its cash flow and reduce its debt.

For all of fiscal 2010, the company posted net income of $4.8 million, compared to a net loss in fiscal 2009 of $17.1 million; without a $21.6 million charge for impairment of goodwill, Crown Crafts had net income of $4.5 million. Net sales slipped 1.5 percent to $86.1 million for the fiscal year.

HFN Staff | News & Commentary

HFN provides detailed information on the key home classifications: Housewares, Tabletop, Floor Covering & Rugs, Furniture, Home Textiles, Lighting, Home Decor, Mattresses & Bedding, Gifts, Major Appliances and Consumer Electronics as well as Business, Finance and Retail.

Videos

  • Patti Carpenter Talks Color and its Importance in the Home

    Camera Icon   More Videos

Subscribe to
HFN Omnichannel
Receive the news you need to know about the trends in the industry delivered right to your inbox.

Current Issue

  • HFN August 2017 cover

    HFN's DIGITAL EDITION

    August 2017


    COVER STORY: Sharpening the Focus on Millennials

    Find out what makes Millennials tick when it comes to home decorating, shopping and at-home entertaining with HFN's annual consumer study. Turns out, Millennials favor the in-store shopping experience.


    ALSO IN THIS ISSUE:

    • Power of the People - Crowdfunding campaigns provide needed capital, feedback for home and housewares product launches.
    •  Omnichannel Retailing: Visual Search Takes Off - Learn how voice and visual search are revolutionizing product discovery.