Crown Crafts' (CRWS) Q4 Earnings Improve Y/Y, Gross Margin Up

Core Insights - Crown Crafts reported a full-year revenue of $87.6 million for fiscal 2024, reflecting a 16.8% increase compared to fiscal 2023 [7] - The company experienced a significant growth in the Bibs, toys, and disposable products segment, with revenues reaching $55.6 million, up 45.1% year over year [8] - However, the Bedding, blankets, and accessories segment saw a decline in revenues, totaling $32 million, down 12.8% from the previous fiscal year [17] Revenue Analysis - Full-year fiscal 2024 revenues were $87.6 million, indicating a 16.8% uptick from the comparable fiscal 2023 period [7] - Revenues in the Bibs, toys, and disposable products segment totaled $55.6 million in fiscal 2024, up 45.1% from fiscal 2023 [8] - The Bedding, blankets, and accessories segment reported revenues of $32 million, down 12.8% from fiscal 2023 [17] Profitability Metrics - Income from operations in the fiscal fourth quarter was $1.3 million, up 36.8% year over year, while for fiscal 2024, it was $6.9 million, down 3.9% from fiscal 2023 [5] - Gross profit for fiscal 2024 was $23 million, up 15.9% from the previous year, with a gross margin of 26.2%, down 20 basis points from 26.4% [9] - Net income in the fiscal fourth quarter was $1 million, up 21.3% year over year, but for fiscal 2024, net income was $4.9 million, down 13.4% from fiscal 2023 [15] Expense Overview - Marketing and administrative expenses during fiscal 2024 were $16.1 million, up 27.3% from the comparable fiscal 2023 period [4] - The increase in expenses was primarily due to costs incurred by Manhattan and Manhattan Toy Europe Limited, which were $3.9 million higher than the prior fiscal year [4] Cash Flow and Debt Management - Cumulative net cash provided by operating activities at the end of fiscal 2024 was $7.1 million compared to $7.7 million a year ago [6] - Total long-term debt at the end of fiscal 2024 was $8.1 million, down from $12.7 million at the end of fiscal 2023 [10] - Crown Crafts exited fiscal 2024 with cash and cash equivalents of $0.8 million, down from $1.7 million at the end of fiscal 2023 [25] Segment Performance - The Bibs, toys, and disposable products segment showed robust performance, aided by revenues from Manhattan Toy, which generated net sales of $18.5 million [8] - The decline in the Bedding, blankets, and accessories segment's revenues was attributed to ongoing inflationary pressures affecting consumer discretionary spending [11]