GONZALES, La., Aug. 06, 2025 (GLOBE NEWSWIRE) -- Crown Crafts, Inc. (NASDAQ-CM: CRWS) (the “Company”) today announced that it intends to release the results of its operations for the first quarter of fiscal 2026 before the market opens on Wednesday, August 13, 2025. Olivia W. Elliott, President and Chief Executive Officer, and Claire K. Spencer, Vice President and Chief Financial Officer, will host a teleconference at 8:00 a.m. Central Daylight Time on that day to discuss the Company’s results and answer ap ...

Financial Data and Key Metrics Changes - Fiscal year 2025 total sales were slightly below the previous year due to persistent inflation and consumer pullback on discretionary spending [5][12] - Fourth quarter net sales increased by 2.9% year-over-year to $23,200,000, driven by strong sales of Baby Boom products [10] - Full year net sales for fiscal 2025 were $87,300,000, a slight decrease from $87,600,000 in the prior year [12] - GAAP net loss for the fourth quarter was $10,800,000, primarily due to a $13,800,000 goodwill impairment charge [11] - Adjusted net income for the year was $1,000,000, translating to adjusted diluted earnings per share of $0.10 [13] Business Line Data and Key Metrics Changes - The Baby Boom acquisition contributed $11,900,000 in net sales, but this was offset by declines in legacy business lines [12] - Gross profit margin for the fourth quarter decreased to 18.3% from 23.2% in the prior year, attributed to higher tariffs and increased expenses [11] - Marketing and administrative expenses rose by 17% year-over-year, driven by increased advertising costs and expenses from the Baby Boom acquisition [11] Market Data and Key Metrics Changes - The company faced challenges due to uncertainty around U.S. tariff policy, impacting sales from imports [5] - The company is exploring international sales growth through distributor partnerships, anticipating an increase in international sales [33] Company Strategy and Development Direction - The company is focused on long-term growth through acquisitions and expanding product offerings, including the recent acquisition of Baby Boom Consumer Products [6][17] - Plans to mitigate tariff impacts include working with manufacturers and retail partners to absorb costs [19] - The company aims to explore product and channel expansions to increase sales and market share [20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the economic headwinds affecting consumers and the company, but emphasized steps taken to position for long-term success [17] - The most pressing challenge is navigating the impact of tariffs, with a 30% tariff on goods ordered [19] - Management expressed optimism about future growth opportunities and the integration of acquisitions [20] Other Important Information - Cash flow from operations for 2025 was $9,800,000, an increase from $7,100,000 in the prior year [14] - The company paid $0.32 per share in cash dividends, marking the fifteenth consecutive year of dividend payments [15] Q&A Session Summary Question: Update on warehouse status - Management is still exploring options for the warehouse but has focused on tariffs recently [24][25] Question: Feedback from the New York Toy Show - The sales and product development team received positive feedback and wrote some orders at the Toy Fair [26] Question: Status of the Stella doll redesign - The new Love Stella line has been well-received, aided by marketing efforts including a mention by Meghan Markle [27] Question: Sales to LEGOLAND - Sales to LEGOLAND increased in fiscal 2025, with expectations to be the only plush supplier in the park soon [29] Question: Development of licensed diaper bags - The company is excited about potential licensed diaper bags but is facing challenges due to tariffs [30] Question: Update on tax credit for baby products - No recent updates on the potential tax credit for parents have been heard [32] Question: Impact of using distributors in Europe - The transition to distributors is expected to positively impact international sales [33] Question: Redesign of the Manhattan Toy website - The website redesign has improved user experience and is driving more traffic through social media [34]

Financial Data and Key Metrics Changes - Fiscal year 2025 total sales were slightly below the previous year due to persistent inflation and consumer pullback on discretionary spending [4] - Fourth quarter net sales increased by 2.9% year-over-year to $23,200,000, driven by strong Baby Boom product sales [8] - Full year net sales for fiscal 2025 were $87,300,000, a slight decrease from $87,600,000 in the prior year [11] - GAAP net loss for the fourth quarter was $10,800,000, primarily due to a $13,800,000 goodwill impairment charge [10] - Adjusted net income for the year was $1,000,000, translating to adjusted diluted earnings per share of $0.10 [12] Business Line Data and Key Metrics Changes - The Baby Boom acquisition contributed $11,900,000 in net sales, but this was offset by declines in legacy business lines [11] - Gross profit margin for the fourth quarter decreased to 18.3% from 23.2% in the prior year, attributed to higher tariffs and increased expenses [9] - Marketing and administrative expenses rose by 17% year-over-year due to increased advertising costs and expenses from the Baby Boom acquisition [10] Market Data and Key Metrics Changes - The company faced challenges due to uncertainty around U.S. tariff policy, impacting sales from imports [4] - The transition to using distributors in Europe is expected to enhance international sales over time [32] Company Strategy and Development Direction - The company is focused on long-term growth through acquisitions and expanding product offerings, including the recent acquisition of Baby Boom Consumer Products [5] - Plans to mitigate tariff impacts include working with manufacturers and retail partners to absorb costs [17] - The company aims to explore product and channel expansions to increase sales and market share [17] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the economic headwinds affecting consumers and the company, but emphasized steps taken to position for long-term success [16] - The most pressing challenge is navigating the impact of tariffs, with a current expectation of a 30% tariff on goods ordered [17] - Management expressed optimism about future growth opportunities and the integration of acquisitions [16] Other Important Information - Cash flow from operations for 2025 was $9,800,000, an increase from $7,100,000 in the prior year [13] - The company paid $0.32 per share in cash dividends, marking the fifteenth consecutive year of dividend payments [14] Q&A Session Summary Question: Update on warehouse status - The company is still exploring options for the warehouse but has focused on tariffs recently [23] Question: Outcome of the New York Toy Show - The sales and product development team received positive feedback and wrote some orders at the Toy Fair [25] Question: Status of the Stella doll redesign - The new Love Stella line has been well-received, aided by marketing efforts including mentions by Meghan Markle [26] Question: Sales to LEGOLAND - Sales to LEGOLAND increased in fiscal 2025, with expectations to be the only plush supplier in the park soon [29] Question: Development of licensed diaper bags - The company is excited about potential licensed diaper bags but is facing challenges due to tariffs [30] Question: Update on tax credit for baby products - No recent updates on the potential tax credit for parents have been heard [31] Question: Impact of using distributors in Europe - The transition to distributors is expected to positively impact international sales [32] Question: Redesign of the Manhattan Toy website - The redesigned website has improved user experience and is driving more traffic [34]

[Financial Results Announcement](index=1&type=section&id=Financial%20Results%20Announcement) Crown Crafts reported Q4 and full-year fiscal 2025 results, significantly impacted by a goodwill impairment charge [Fourth Quarter Fiscal 2025 Highlights](index=1&type=section&id=Fourth%20Quarter%20Fiscal%202025%20Highlights) Q4 fiscal 2025 saw net sales of $23.2 million, a 18.3% gross margin, and a GAAP net loss of $10.8 million due to goodwill impairment Q4 Fiscal 2025 Key Financial Metrics | Metric | Value | | :--- | :--- | | Net Sales | $23.2 million | | Gross Profit | $4.2 million | | Gross Margin | 18.3% | | GAAP Net Loss | $(10.8) million | | GAAP Diluted Loss per Share | $(1.04) | | Adjusted Net Loss | $(429,000) | | Adjusted Diluted Loss per Share | $(0.04) | | Quarterly Dividend | $0.08 per share | - The reported results include a significant goodwill impairment charge of **$13.8 million** (**$10.4 million** after tax), which heavily impacted the GAAP net loss[6](index=6&type=chunk) [Full Year Fiscal 2025 Highlights](index=1&type=section&id=Full%20Year%20Fiscal%202025%20Highlights) Fiscal 2025 net sales were $87.3 million with a 24.4% gross margin, resulting in a GAAP net loss of $9.4 million after impairment Fiscal Year 2025 Key Financial Metrics | Metric | Value | | :--- | :--- | | Net Sales | $87.3 million | | Gross Profit | $21.3 million | | Gross Margin | 24.4% | | GAAP Net Loss | $(9.4) million | | GAAP Diluted Loss per Share | $(0.90) | | Adjusted Net Income | $1.0 million | | Adjusted Diluted EPS | $0.10 | - Full-year results were adjusted for a goodwill impairment charge of **$13.8 million** (**$10.4 million** after tax), which was the primary driver of the GAAP net loss[6](index=6&type=chunk) [Financial Performance Analysis](index=1&type=section&id=Financial%20Performance%20Analysis) Management discusses Q4 profitability challenges and full-year strategic initiatives, detailing performance drivers and impacts [Management Commentary](index=1&type=section&id=Management%20Commentary) CEO highlights Q4 sales growth offset by margin pressures and outlines key strategic initiatives for long-term growth - Q4 sales increased by **2.9%** year-over-year, but adjusted net income was negatively impacted by close-out sales at lower margins and tariffs[5](index=5&type=chunk) - Key strategic initiatives for the year included: acquiring Baby Boom Consumer Products, integrating Manhattan Toy, reducing operational costs, expanding e-commerce, and planning for warehouse consolidation[5](index=5&type=chunk) [Fourth Quarter Fiscal 2025 Performance Details](index=2&type=section&id=Fourth%20Quarter%20Fiscal%202025%20Performance%20Details) Q4 net sales increased 2.9% to $23.2 million, but gross margin declined to 18.3% due to close-out sales and tariffs - Net sales rose **2.9%** to **$23.2 million**, primarily due to the Baby Boom acquisition[7](index=7&type=chunk) - Gross margin fell by **4.9 percentage points** to **18.3%**, impacted by close-out sales and **$324,000** in higher tariffs from China[7](index=7&type=chunk) - A **$13.8 million** non-cash goodwill impairment charge was recorded after a triggering event related to the company's depressed stock price and market capitalization[9](index=9&type=chunk) - Marketing and administrative expenses increased by **17.0%** to **$4.6 million**, including costs from the Baby Boom business[8](index=8&type=chunk) [Full Year Fiscal 2025 Performance Details](index=2&type=section&id=Full%20Year%20Fiscal%202025%20Performance%20Details) Fiscal 2025 net sales were flat at $87.3 million, with gross margin decreasing to 24.4% and inventory reduced by 6.4% - Net sales were essentially flat at **$87.3 million** compared to fiscal 2024[11](index=11&type=chunk) - Gross margin decreased by **1.8 percentage points** to **24.4%**, primarily due to higher rent, closeout sales, and increased tariffs[11](index=11&type=chunk) - Marketing and administrative expenses rose **16%** to **$18.7 million**, including **$1.2 million** in costs for the Baby Boom acquisition and **$244,000** for a UK subsidiary closure[12](index=12&type=chunk) - Total inventory at year-end was **$27.8 million**, a **6.4%** decrease from the end of fiscal 2024[13](index=13&type=chunk) [Shareholder Information](index=2&type=section&id=Shareholder%20Information) Details on the declared quarterly cash dividend and access information for the upcoming financial results conference call [Quarterly Cash Dividend](index=2&type=section&id=Quarterly%20Cash%20Dividend) The Board declared a **$0.08 per share** quarterly cash dividend payable on July 3, 2025 - The Board of Directors declared a quarterly cash dividend of **$0.08 per share**[14](index=14&type=chunk) - The dividend is payable on July 3, 2025, to stockholders of record at the close of business on June 13, 2025[14](index=14&type=chunk) [Conference Call Information](index=2&type=section&id=Conference%20Call%20Information) A conference call is scheduled for 8:00 a.m. CDT to discuss financial results, with a replay available - A conference call to discuss results is scheduled for **8:00 a.m. CDT**[15](index=15&type=chunk) - A telephone replay will be available until **4:00 p.m. CDT on September 25, 2025**[15](index=15&type=chunk) [Company Overview and Disclosures](index=3&type=section&id=Company%20Overview%20and%20Disclosures) Provides background on Crown Crafts, Inc. as a juvenile products producer and outlines forward-looking statement risks [About Crown Crafts, Inc.](index=3&type=section&id=About%20Crown%20Crafts%2C%20Inc.) Crown Crafts, Inc. is a leading American producer and distributor of infant, toddler, and juvenile consumer products - The company designs, markets, and distributes infant, toddler, and juvenile consumer products, including bedding, diaper bags, bibs, and toys[16](index=16&type=chunk) - It operates through wholly-owned subsidiaries like NoJo Baby & Kids, Inc. and Sassy Baby, Inc., and sells directly to major retailers[16](index=16&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) The report contains forward-looking statements subject to various risks, including economic conditions and supply chain dependencies - The report includes forward-looking statements that are subject to known and unknown risks and uncertainties[17](index=17&type=chunk) - Identified risks include general economic conditions, changing competition, ability to integrate acquisitions, customer concentration, and dependence on foreign suppliers[17](index=17&type=chunk) [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) Presents the company's consolidated statements of operations, balance sheets, and non-GAAP reconciliations [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) Fiscal 2025 saw a net loss of **$9.4 million** due to a **$13.8 million** goodwill impairment charge Consolidated Statements of Operations (in thousands, except per share amounts) | | Fiscal Year Ended March 30, 2025 | Fiscal Year Ended March 31, 2024 | Three-Month Period Ended March 30, 2025 | Three-Month Period Ended March 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $87,250 | $87,632 | $23,227 | $22,579 | | **Gross profit** | $21,265 | $23,000 | $4,244 | $5,228 | | **(Loss) income from operations** | $(11,191) | $6,895 | $(14,104) | $1,312 | | **Net (loss) income** | $(9,356) | $4,894 | $(10,787) | $1,004 | | **Diluted (loss) earnings per share** | $(0.90) | $0.48 | $(1.04) | $0.10 | [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) Total assets were **$81.2 million** as of March 30, 2025, with shareholders' equity decreasing to **$39.6 million** Selected Balance Sheet Data (in thousands) | | March 30, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Total current assets | $55,303 | $54,824 | | Goodwill | $0 | $7,926 | | **Total assets** | **$81,154** | **$82,706** | | Total current liabilities | $15,505 | $10,461 | | Long-term debt | $16,512 | $8,112 | | **Total liabilities** | $41,535 | $31,095 | | **Shareholders' equity** | **$39,619** | **$51,601** | [Non-GAAP Financial Measures Reconciliation](index=6&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) Reconciles GAAP net loss to adjusted non-GAAP figures by excluding the **$13.8 million** goodwill impairment charge Reconciliation of GAAP to Non-GAAP Net (Loss) Income (in thousands) | | Fiscal Year 2025 | Q4 2025 | | :--- | :--- | :--- | | **Net (loss) income (GAAP)** | **$(9,356)** | **$(10,787)** | | Goodwill impairment charge | 13,766 | 13,766 | | Tax impact of adjustments | (3,408) | (3,408) | | **Adjusted net (loss) income (Non-GAAP)** | **$1,002** | **$(429)** | - Management believes adjusted net income provides useful information by removing the impact of impairment charges that are not reflective of the core business, allowing for better period-to-period comparison[25](index=25&type=chunk)

Commission File No. 1-7604 Crown Crafts, Inc. Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Mark One) Form 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended March 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Exact name of registrant as specified in its charter) Delaware 58-0678148 (State of Incorporation) (I.R.S. Employer Identification N ...

Core Viewpoint - Crown Crafts, Inc. reported a mixed financial performance for the fourth quarter and fiscal year 2025, with increased sales but significant net losses due to various challenges including tariffs and goodwill impairment charges [5][11]. Fourth Quarter Summary - Net sales for the fourth quarter of fiscal 2025 increased by 2.9% to $23.2 million compared to the prior year quarter, driven by the Baby Boom acquisition [6][8]. - Gross margin decreased to 18.3%, a decline of 4.9% from the prior year quarter, attributed to a higher mix of close-out sales and $324,000 in increased tariffs on imports from China [6][8]. - Marketing and administrative expenses rose by 17.0% to $4.6 million, including $77,000 in acquisition costs related to Baby Boom [7][8]. - The company recorded a GAAP net loss of $(10.8) million, or $(1.04) per diluted share, and an adjusted net loss of $(429,000), or $(0.04) per adjusted diluted share, which excludes a goodwill impairment charge of $13.8 million [10][12]. Fiscal 2025 Summary - Total net sales for fiscal 2025 were $87.3 million, essentially flat compared to fiscal 2024 [11][12]. - Gross margin for the year was 24.4%, down 1.8% from fiscal 2024, primarily due to higher rent and increased tariffs [11][12]. - Marketing and administrative expenses increased by 16% to $18.7 million, which included costs associated with the Baby Boom acquisition and the closure of a subsidiary in the UK [12]. - The company reported a GAAP net loss of $(9.4) million, or $(0.90) per diluted share, while adjusted net income was $1.0 million, or $0.10 per adjusted diluted share [12][11]. Goodwill Impairment - A goodwill impairment charge of $13.8 million was recorded due to a decline in the company's market capitalization and the fair values of its reporting units being lower than their carrying values [9][10]. Cash and Inventory Position - At the end of fiscal 2025, the company had $521,000 in cash and cash equivalents, with total inventory at $27.8 million, reflecting a 6.4% decrease compared to the end of fiscal 2024 [13]. Dividend Declaration - The company declared a quarterly cash dividend of $0.08 per share of Series A common stock, to be paid on July 3, 2025 [14]. Company Overview - Crown Crafts, Inc. designs, markets, and distributes a variety of infant, toddler, and juvenile consumer products, and is one of America's largest producers in this sector [16].

Core Viewpoint - Crown Crafts, Inc. is set to release its fourth quarter and full year results for fiscal 2025 on June 25, 2025, before market opening, with a teleconference scheduled for discussion [1] Company Overview - Crown Crafts, Inc. designs, markets, and distributes a range of infant, toddler, and juvenile consumer products, and is one of the largest producers in the U.S. for items such as infant bedding, diaper bags, and toys [4] - The company operates through subsidiaries NoJo Baby & Kids, Inc. and Sassy Baby, Inc., offering products under company-owned trademarks and licensed collections [4] - Sales are directed to various retailers, including mass merchants and juvenile specialty stores [4] Teleconference Details - Interested parties can join the teleconference by calling (844) 861-5504 or by accessing it in listen-only mode via the company's website [2] - A replay of the teleconference will be available one hour after the call until September 25, 2025, at 4:00 p.m. Central Daylight Time [3]

Group 1 - Crown Crafts, Inc. announced the retirement of Craig J. Demarest as Chief Financial Officer effective June 30, 2025, and the appointment of Claire K. Spencer as the new CFO [1][2] - Olivia Elliott, President and CEO, expressed excitement about Claire K. Spencer joining the company and acknowledged Craig J. Demarest's leadership over the past four years [2] - Claire K. Spencer has a strong background in financial reporting, having served as Director of SEC Reporting for H&E Equipment Services and held various roles at KPMG [3] Group 2 - Crown Crafts, Inc. designs, markets, and distributes a range of infant, toddler, and juvenile consumer products, and is one of America's largest producers in this sector [4] - The company operates through subsidiaries NoJo Baby & Kids, Inc. and Sassy Baby, Inc., marketing products under company-owned trademarks and licensed collections [4]

Core Viewpoint - Crown Crafts, Inc. reported a decline in net sales and profitability for the third quarter of fiscal 2025, primarily due to lower online toy sales and the loss of a major retailer's bid program, despite a positive contribution from the Baby Boom acquisition Financial Performance Overview - For Q3 fiscal 2025, net sales were $23.4 million, down 1.9% from $23.8 million in the prior year, driven by lower online toy sales and the loss of a major retailer's bid program [2] - Gross profit decreased 5.2% year over year to $6.1 million, with gross margin contracting to 26.1% from 27% due to changes in product mix and higher warehouse lease costs [3] - Operating income fell 26.9% to $1.7 million from $2.3 million, while net income was $0.9 million, or $0.09 per diluted share, a 47.5% decrease from $1.7 million, or $0.17 per diluted share, a year ago [4] Segment Performance - Sales of bedding and diaper bags grew 24.3% to $11.2 million, driven by the Baby Boom acquisition, which contributed $3.8 million [5] - However, sales of bibs, toys, and disposable products declined 17.8% to $12.2 million, primarily due to lower toy sales and the loss of a program at a major retailer [5] Key Business Metrics - Interest expense rose 87.9% year over year to $0.4 million due to increased borrowings for the Baby Boom acquisition [6] - Cash and cash equivalents increased to $1.1 million from $0.8 million, while total debt rose significantly to $20.9 million from $8.1 million [6] - Inventory stood at $32.4 million, up from $29.7 million, and operating cash flow increased to $6.9 million year to date compared to $4.1 million in the same period last year [7] Management Commentary - CEO Olivia Elliott highlighted the company's ability to maintain profitability amid economic uncertainty, focusing on expanding product offerings in diaper bags and high-end toys [8] - Management acknowledged constraints on consumer discretionary income impacting overall sales [8] Cost Management and Strategic Initiatives - The company is addressing rising costs due to new 10% tariffs on Chinese imports, negotiating with suppliers to absorb some costs while considering selective price increases [9] - Management is evaluating warehouse relocation options to reduce long-term leasing costs [9] - While no specific forward-looking guidance was provided, management emphasized maintaining cost discipline and driving top-line growth through product refresh initiatives and potential new retail placements in 2026 [12] Other Developments - Crown Crafts completed the integration of Baby Boom, acquired for $18 million, which expanded its product offerings in the diaper bag category [13] - The company declared a quarterly dividend of $0.08 per share, payable on April 4, 2025 [13]

Financial Data and Key Metrics Changes - Net sales for Q3 2025 were $23.3 million, a decrease from $23.8 million in the prior year quarter, primarily due to lower online toy sales [4] - Gross profit margin decreased to 26.1% from 27% in Q3 2024, attributed to changes in product mix and higher lease costs [5] - Net income for the quarter was $893,000 or $0.09 per diluted share, down from $1.7 million or $0.17 per diluted share in the prior year [7] - Cash flow from operations year-to-date was $7 million, compared to $4.1 million in the same period last year [7] - Cash and cash equivalents at the end of Q3 were $1.1 million, up from $829,000 at the end of fiscal 2024 [7] Business Line Data and Key Metrics Changes - The acquisition of Baby Boom contributed $3.8 million in net sales this quarter, partially offsetting declines in other areas [4][5] - Marketing and administrative expenses increased to $4.4 million from $4.1 million in the prior year, mainly due to acquisition-related costs [6] Market Data and Key Metrics Changes - The decline in sales was primarily seen in the Manhattan Toy brand, with disappointing holiday sales attributed to consumers trading down to less expensive toy lines [27][28] - The loss of the Target bib program in November 2023 also contributed to the decline in sales [71] Company Strategy and Development Direction - The company is focused on refreshing high-end toy and diaper bag lines while developing new products to complement existing categories [10] - The management is evaluating warehouse locations to reduce costs, with a preference for a West Coast location due to overall logistics [20][22] - The company is monitoring tariff updates and is optimistic about managing costs with suppliers to minimize consumer impact [11][78] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth opportunities, particularly in diaper bags and new product placements [22][24] - The company remains well-positioned to navigate economic challenges while preparing for improved market conditions [12] Other Important Information - The company paid a regular quarterly dividend of $0.08 per share and declared the next dividend to be paid in April [9] - The company is considering price increases to offset potential tariff impacts but aims to minimize the effect on consumers [78] Q&A Session Summary Question: Warehouse location decision-making process - Management is considering cost, lead times, and logistics in deciding between two potential warehouse locations [17][20] Question: Update on diaper bag business initiatives - Positive meetings with potential licensors and retailers have occurred, with expectations for new placements in 2026 [22][24] Question: Status of Manhattan Toy brand and holiday sales - Holiday sales were disappointing, with a noted decline in the Manhattan Toy brand, but new product developments received positive feedback [27][28] Question: Effectiveness of overseas distributor for Manhattan Toy - The shift to a distributor system has been effective, with distributors picking up sales for the Manhattan Toy brand [30] Question: Tariff impact and supplier negotiations - Initial conversations with suppliers indicate potential for price rollbacks to offset tariff increases, with adjustments expected to be implemented immediately [78][80]