Financial Performance - Net sales for Q3 fiscal 2025 were $23.3 million, a decrease of 2.1% from $23.8 million in the prior-year quarter[5] - Gross margin decreased to 26.1% compared to 27.0% in Q3 fiscal 2024[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 quarter[5] - Marketing and administrative expenses increased to $4.4 million from $4.1 million in Q3 fiscal 2024[5] Dividend Information - The company declared a quarterly cash dividend of $0.08 per share, payable on April 4, 2025[7] Asset Management - Total assets increased to $98.7 million as of December 29, 2024, compared to $82.7 million on March 31, 2024[15] - The company reported a strong balance sheet while managing borrowings effectively[4] Strategic Focus - The company is focused on developing new products to drive top-line growth despite ongoing economic uncertainty[4] - The company anticipates being well positioned for long-term growth when economic conditions improve[4] - Inventory levels are being efficiently lowered from the prior year, even with the acquisition of Baby Boom[4]

Financial Performance - Net sales decreased to $23.3 million for the three months ended December 29, 2024, compared to $23.8 million for the same period in 2023, a decrease of $450,000 or 1.9%[62] - For the nine months ended December 29, 2024, net sales were $64.0 million, down from $65.1 million in the same period in 2023, a decrease of $1.0 million or 1.6%[63] - Net income for the three months ended December 29, 2024, was $893,000, a decrease of $809,000 or 47.5% compared to $1.7 million in Q3 2023[62] - Gross profit decreased by $336,000, from 27.0% of net sales in Q3 2023 to 26.1% in Q3 2024[64] Expenses - Marketing and administrative expenses increased by $290,000, rising from 17.3% of net sales in Q3 2023 to 18.8% in Q3 2024[67] - Factoring fees for the three-month periods ended December 29, 2024, and December 31, 2023, were $115,000 and $106,000, respectively, while for the nine-month periods, they were $283,000 and $265,000[80] Cash Flow and Investments - Net cash provided by operating activities increased from $4.1 million for the nine-month period ended December 31, 2023, to $7.0 million for the nine-month period ended December 29, 2024[75] - Net cash used in investing activities increased significantly to $17.0 million, primarily due to a $16.4 million payment for the Acquisition[76] Debt and Credit - As of December 29, 2024, the balance on the revolving line of credit was $13.7 million, with $15.3 million available based on eligible accounts receivable and inventory[78] - The Company had $20.9 million of indebtedness at a variable interest rate, with an annual net income decrease of approximately $162,000 for each one percentage point increase in interest rates[85] - The Company has modified its financing agreement with CIT to increase the Excess Availability required for its revolving credit line from $7,000,000 to $7,500,000[82] - The Company has entered into agreements with CIT to waive compliance with the fixed charge coverage ratio for the fiscal years ending March 30, 2025, and March 29, 2026[82] Customer Dependency and Product Sales - The Company's financial results are significantly dependent on its top two customers, which accounted for approximately 61% of gross sales in fiscal year 2024[87] - 40% of the Company's gross sales in fiscal year 2024 were from licensed products, including 24% from agreements with affiliated companies of the Walt Disney Company[87] - Sales of bedding and diaper bags increased by $2.2 million, while sales of bibs, toys, and disposable products decreased by $2.6 million during the three-month period[62] Operational Considerations - The Company believes its cash flow from operations and available funds under the revolving line of credit will be sufficient to meet liquidity needs[83] - The Company bears the responsibility for customer-related adjustments such as returns and discounts, while CIT bears credit losses on assigned accounts receivable[80] - The Company sources products primarily from foreign manufacturers, with significant exposure to commodity price risks in China, particularly for cotton, oil, and labor[86] - The Company acquired Baby Boom, which designs and sells licensed and unlicensed bedding and diaper bag products, since the last annual report[87]

Core Viewpoint - Crown Crafts, Inc. reported its third quarter fiscal year 2025 results, highlighting its ability to maintain cash flow and profitability despite a challenging macroeconomic environment [3]. Financial Performance - Net sales for the third quarter of fiscal 2025 were $23.3 million, a decrease from $23.8 million in the prior-year quarter [4][11]. - Gross margin was 26.1%, down from 27.0% in the third quarter of 2024 [4][11]. - Marketing and administrative expenses increased to $4.4 million from $4.1 million in the same quarter last year [4][11]. - Net income was $893,000, or $0.09 per diluted share, compared to $1.7 million, or $0.17 per diluted share in the prior-year quarter [4][11]. Dividend Announcement - The Board of Directors declared a quarterly cash dividend of $0.08 per share on the Company's Series A common stock, payable on April 4, 2025, to stockholders of record on March 14, 2025 [5]. Company Overview - Crown Crafts, Inc. designs, markets, and distributes infant, toddler, and juvenile consumer products, and is one of America's largest producers in this sector [7].

Core Viewpoint - Crown Crafts, Inc. is set to release its third quarter fiscal year 2025 operational results on February 12, 2025, before market opening, with a teleconference scheduled for the same day to discuss the results [1]. Group 1: Earnings Release Information - The Company will announce its third quarter results before the market opens on February 12, 2025 [1]. - A teleconference will be hosted by the President and CEO, Olivia W. Elliott, and the CFO, Craig J. Demarest, at 8:00 a.m. Central Standard Time on the same day [1]. Group 2: Teleconference Participation - Interested individuals can join the teleconference by dialing (844) 861-5504 or by accessing the listen-only mode on the Company's website [2]. - Financial information discussed during the teleconference will be available on the investor relations section of the Company's website after the earnings release [2]. Group 3: 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 this sector in the U.S. [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].

Core Insights - Crown Crafts, Inc. reported a net sales increase of 1.4% year-over-year for Q2 fiscal 2025, reaching $24.5 million, primarily driven by the acquisition of Baby Boom Consumer Products, which contributed $3.4 million in sales [2][14] - The company's net income decreased by 52.8% to $0.9 million, or $0.08 per diluted share, influenced by acquisition-related costs of $0.8 million [3][14] - The stock has underperformed compared to the S&P 500, with a decline of 1.3% since the earnings report, and an 8.7% drop over the past month [1] Financial Performance - Gross profit margin improved to 28.4% of net sales from 27.3% in the previous year, attributed to product mix adjustments, despite increased rent costs [5] - Marketing and administrative expenses rose to $5.4 million, representing 22.3% of net sales, up from 16.7% the previous year, mainly due to acquisition-related expenses [6] Business Developments - The Baby Boom acquisition is expected to enhance product offerings and cross-selling opportunities, with new products like diaper bags and licensed toddler bedding sets [7] - The company plans to optimize its cost structure, including potential warehouse consolidations by fiscal 2026 [8] Strategic Direction - Crown Crafts aims to expand direct-to-consumer sales channels with new websites for its NoJo and Sassy brands, expected to launch before the holiday season [13] - The acquisition of Baby Boom was completed for a total price of $18 million, funded through an $8 million term loan and additional borrowings [14] Market Conditions - The legacy business faced challenges due to reduced orders and weak consumer demand, impacting certain product lines [10] - The company anticipates improved consumer confidence due to expected interest rate reductions and lower inflation [11]

Financial Data and Key Metrics Changes - Net sales for Q2 fiscal 2025 were $24.5 million, an increase from $24.1 million in the prior year quarter, primarily due to the Baby Boom acquisition which contributed $3.4 million [8][9] - Gross profit margin improved to 28.4% from 27.3% a year earlier, reflecting a slight change in product mix despite higher lease costs [8] - Net income for the quarter was $860,000 or $0.08 per diluted share, down from $1.8 million or $0.18 per diluted share in the prior year quarter [9] Business Line Data and Key Metrics Changes - The Baby Boom acquisition positively impacted sales, contributing $3.4 million, while legacy businesses experienced declines, particularly due to the loss of a bid program at a major retailer [8][9] - Marketing and administrative expenses rose to $5.4 million, up from $4 million in the prior year quarter, increasing as a percentage of net sales from 16.7% to 22.3% [9] Market Data and Key Metrics Changes - The acquisition of Baby Boom is expected to enhance the company's presence in the toddler segment and expand product offerings, particularly in diaper bags [6] - Consumer sentiment is improving, with the University of Michigan's Consumer Sentiment Index reaching its highest level since April, which may positively influence purchasing power [6] Company Strategy and Development Direction - The company is focused on integrating the Baby Boom brand into its operations and exploring cross-selling opportunities among its brands [13] - Strategic evaluation of warehouse options is ongoing, with plans for consolidation expected in fiscal 2026 [13] - The company is not currently looking for additional acquisitions but is focused on absorbing the recent acquisition and managing costs [30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the upcoming holiday season and the potential for increased revenues due to the Baby Boom acquisition and improving macroeconomic conditions [6][13] - The company is actively managing its cost structure while aiming to capture market share as the economic environment improves [13] Other Important Information - Cash and cash equivalents at the end of Q2 were $2 million, up from $1.1 million at the end of Q1 and $829,000 at the end of fiscal 2024 [10] - The company paid a regular dividend of $0.08 per share and declared the next dividend to be paid in January [11] Q&A Session Summary Question: Status of warehouse consolidation - Management is currently considering three locations and plans to narrow it down to one or two by the end of the fiscal year [15] Question: Feedback on Manhattan Toy products in Walmart - Sell-through of Manhattan Toy products in Walmart is performing well, particularly in better-performing stores [16] Question: Improvement of Manhattan Toy margins - Margins are improving as new products are developed and manufacturers are switched [17] Question: Update on Baby Boom licenses - All licenses are performing well, with Bluey being particularly popular [23] Question: Sourcing strategy and impact of tariffs - Most products are sourced from China, with ongoing evaluations of other countries due to potential tariff impacts [38][39]

Financial Performance - Net sales for Q2 fiscal 2025 were $24.5 million, a slight increase from $24.1 million in the prior-year quarter, driven by the acquisition of Baby Boom which contributed $3.4 million in net sales[1][3] - Gross profit margin improved to 28.4% in Q2 fiscal 2025, up from 27.3% in the same period last year, primarily due to product mix changes[1][4] - Net income for Q2 fiscal 2025 was $860,000, or $0.08 per diluted share, compared to $1.8 million, or $0.18 per diluted share in the prior-year quarter, impacted by $788,000 in acquisition-related costs[1][4] Acquisition of Baby Boom - The company acquired Baby Boom Consumer Products, Inc. on July 19, 2024, which contributed $3.4 million in net sales during the quarter[2][3] - Marketing and administrative expenses increased to $5.4 million in Q2 fiscal 2025, up from $4.0 million in the prior-year quarter, including $788,000 related to the Baby Boom acquisition[4] - Total assets increased to $99.35 million as of September 29, 2024, up from $82.71 million at the end of the previous fiscal year, driven by the acquisition of Baby Boom[10] - Long-term debt rose to $18.76 million as of September 29, 2024, compared to $8.11 million at the end of the previous fiscal year, reflecting financing for the Baby Boom acquisition[10] Dividends - The company declared a quarterly cash dividend of $0.08 per share of Series A common stock, payable on January 3, 2025[5]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 29, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____to_____ Commission File No. 1-7604 Crown Crafts, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation) (I.R.S. ...

Crown Crafts, Inc. (CRWS) reported a loss per share of 3 cents in the first quarter of fiscal 2025 against the year-ago quarter's earnings of 4 cents per share. Revenues in Detail Crown Crafts registered revenues of $16.2 million in the fiscal first quarter, down 5.3% year over year. Per management, the decrease was primarily due to a major retailer reducing inventory levels and the loss of a program at another major retailer. Segment Details Crown Crafts derives revenues from two segments — Bedding, blanke ...

Crown Crafts, Inc. (NASDAQ:CRWS) Q1 2025 Earnings Conference Call August 15, 2024 9:00 AM ET Company Participants John Beisler - SVP, Three Part Advisors Olivia Elliott - President and CEO Craig Demarest - VP and CFO Conference Call Participants Douglas Ruth - Lenox Financial Services Josh Peters - Morgan Dempsey Operator Good day, and welcome to the Crown Crafts, Inc. First Quarter Fiscal Year 2025 Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note this event ...