Crown Crafts Net Drops 30 Percent in Third Quarter
February 9, 2011,
GONZALES, La.-Higher costs for raw materials, labor, transportation and currency hurt Crown Crafts' bottom line in its fiscal third quarter, which ended on Dec. 26, 2010.
Third-quarter net income fell 30 percent to $775,000, despite a net sales gain of 6.3 percent to $21.9 million. The above-mentioned costs, along with what Crown Crafts described as "certain promotional activities," cut into the company's gross margin, reducing it by 240 basis points to 20.1 percent. Selling, general and administrative expense numbers were not included in the company's report, but income from operations fell 28 percent to $1.4 million.