Crown Crafts Net Falls in Q4, Gains for Fiscal Year
June 19, 2013,
GONZALES, La.-Crown Crafts ended its fiscal year on March 31 with a 2.1 percent slip in fourth-quarter net income, to $1.9 million, and a gain of 1.4 percent in net income for its fiscal year, to $5.1 million.
E. Randall Chestnut, chairman, president and CEO, said Crown Crafts is benefiting from the realignment of its cost structure, the redesign of products to reduce its dependence on high-cost raw materials and the discontinuance of an unprofitable private-label infant bedding program. In the fourth quarter, these actions helped boost gross margin by 280 basis points to 26 percent. The company did not break our selling, general and administrative expenses, but its income from operations rose 4.8 percent to $3 million.
Net sales in the quarter were down 4.9 percent to $23.6 million. For the year, net sales dropped 8.1 percent to $78.4 million. The sales declines were due to the exit from the unprofitable infant-bedding program, along the shift of a modular program's shipment for an unnamed "major customer" from the first quarter of this fiscal year to the fourth quarter of last year, and the soft retail environment.