Crown Crafts Announces Financial Results for Second Quarter Fiscal 2025
Crown Crafts (NASDAQ-CM: CRWS) reported Q2 fiscal 2025 results with net sales of $24.5 million, up from $24.1 million year-over-year. The company posted net income of $860,000, or $0.08 per diluted share, including $788,000 in acquisition-related costs. The recent acquisition of Baby Boom contributed $3.4 million in sales, offsetting declines in legacy businesses. Gross profit margin improved to 28.4% from 27.3% in Q2 2024. The company declared a quarterly dividend of $0.08 per share, payable on January 3, 2025.
Crown Crafts (NASDAQ-CM: CRWS) ha riportato i risultati del secondo trimestre fiscale 2025 con vendite nette di 24,5 milioni di dollari, in aumento rispetto ai 24,1 milioni di dollari dell'anno precedente. L'azienda ha registrato un utile netto di 860.000 dollari, ovvero 0,08 dollari per azione diluita, inclusi 788.000 dollari di costi legati all'acquisizione. La recente acquisizione di Baby Boom ha contribuito con 3,4 milioni di dollari in vendite, compensando i cali nelle attività storiche. Il margine di profitto lordo è migliorato al 28,4% rispetto al 27,3% del secondo trimestre 2024. L'azienda ha dichiarato un dividendo trimestrale di 0,08 dollari per azione, pagabile il 3 gennaio 2025.
Crown Crafts (NASDAQ-CM: CRWS) informó los resultados del segundo trimestre fiscal 2025 con ventas netas de 24.5 millones de dólares, un aumento respecto a los 24.1 millones de dólares del año anterior. La compañía reportó un ingreso neto de 860,000 dólares, o 0.08 dólares por acción diluida, incluyendo 788,000 dólares en costos relacionados con adquisiciones. La reciente adquisición de Baby Boom contribuyó con 3.4 millones de dólares en ventas, compensando las disminuciones en los negocios tradicionales. El margen de utilidad bruta mejoró al 28.4% desde el 27.3% en el segundo trimestre de 2024. La compañía declaró un dividendo trimestral de 0.08 dólares por acción, pagadero el 3 de enero de 2025.
Crown Crafts (NASDAQ-CM: CRWS)는 2025 회계 연도 2분기 실적을 발표했으며, 순매출은 2450만 달러로 전년 대비 2410만 달러에서 증가했습니다. 이 회사는 86만 달러, 즉 희석 주당 0.08 달러의 순이익을 기록했으며, 이에는 78만8000달러의 인수 관련 비용이 포함됩니다. 최근 인수한 Baby Boom은 340만 달러의 매출을 기여하며, 기존 사업의 감소를 상쇄했습니다. 총 이익률은 2024년 2분기 27.3%에서 28.4%로 개선되었습니다. 이 회사는 주당 0.08 달러의 분기 배당금을 발표했으며, 이는 2025년 1월 3일에 지급됩니다.
Crown Crafts (NASDAQ-CM: CRWS) a annoncé les résultats du deuxième trimestre de l'exercice 2025 avec des ventes nettes de 24,5 millions de dollars, en hausse par rapport à 24,1 millions de dollars l'année précédente. L'entreprise a enregistré un bénéfice net de 860 000 dollars, soit 0,08 dollars par action diluée, y compris 788 000 dollars de coûts liés à l'acquisition. La récente acquisition de Baby Boom a contribué à hauteur de 3,4 millions de dollars en ventes, compensant les baisses dans les activités traditionnelles. La marge brute s'est améliorée à 28,4 % contre 27,3 % au deuxième trimestre 2024. L'entreprise a déclaré un dividende trimestriel de 0,08 dollars par action, payable le 3 janvier 2025.
Crown Crafts (NASDAQ-CM: CRWS) hat die Ergebnisse des zweiten Quartals des Geschäftsjahres 2025 veröffentlicht, mit Nettoumsätzen von 24,5 Millionen US-Dollar, was einem Anstieg von 24,1 Millionen US-Dollar im Vorjahr entspricht. Das Unternehmen verbuchte einen Nettogewinn von 860.000 US-Dollar, oder 0,08 US-Dollar pro verwässerter Aktie, einschließlich 788.000 US-Dollar an akquisitionsbezogenen Kosten. Die kürzliche Übernahme von Baby Boom trug mit 3,4 Millionen US-Dollar zum Umsatz bei und kompensierte Rückgänge im traditionellen Geschäft. Die Bruttomarge verbesserte sich auf 28,4% von 27,3% im zweiten Quartal 2024. Das Unternehmen erklärte eine vierteljährliche Dividende von 0,08 US-Dollar pro Aktie, zahlbar am 3. Januar 2025.
- Net sales increased to $24.5 million from $24.1 million YoY
- Gross profit margin improved to 28.4% from 27.3%
- Baby Boom acquisition contributed $3.4 million in sales
- Maintained quarterly dividend of $0.08 per share
- Net income decreased to $860,000 from $1.8 million YoY
- EPS declined to $0.08 from $0.18 YoY
- Loss of a major bib program at a key retailer
- Marketing and administrative expenses increased to $5.4M from $4.0M YoY
- Legacy businesses experienced sales declines
Insights
Crown Crafts' Q2 FY2025 results show mixed performance with some concerning trends. Net sales increased marginally to
The Baby Boom acquisition appears to be masking underlying weakness in core operations. The maintained quarterly dividend of
GONZALES, La., Nov. 12, 2024 (GLOBE NEWSWIRE) -- Crown Crafts, Inc. (NASDAQ-CM: CRWS) (the “Company”) today reported results for the second quarter of fiscal year 2025, which ended September 29, 2024.
Second Quarter Summary
- Net sales of
$24.5 million , compared with$24.1 million in the prior-year quarter - Gross profit of 28.4 percent of net sales compared with 27.3 percent in the second quarter of fiscal 2024
- Net income of
$860,000 , or$0.08 per diluted share. This quarter includes approximately$788,000 ($611,000 and$0.06 per diluted share after tax) of acquisition-related costs - Acquired the assets and liabilities of Baby Boom Consumer Products, Inc. (“Baby Boom”) on July 19th
Subsequent to the end of Second Quarter
- Declared quarterly dividend of
$0.08 per share of Series A common stock
“Our second quarter fiscal 2025 results reflect the immediate contribution from our acquisition of Baby Boom, which offset the continued economic headwinds facing our legacy businesses,” said Olivia Elliott, President and Chief Executive Officer. “We continue to be optimistic about the opportunities within our business, including the cross-selling opportunities and expanded offerings with Baby Boom, product development and increased distribution channels at Manhattan Toy and our ability to generate cash flow to repay our borrowings. These positive developments, combined with our continued cost management and the potential for a more favorable macroeconomic environment will help improve profitability and generate long-term value for our shareholders.”
Second Quarter Fiscal 2025 Results
Net sales for the second quarter of fiscal 2025 were
Gross profit was
Quarterly Cash Dividend
The Company also announced that its Board of Directors declared a quarterly cash dividend on the Company’s Series A common stock of
Conference Call
The Company will host a teleconference today at 8:00 a.m. Central Standard Time to discuss results, during which interested individuals will be given the opportunity to ask appropriate questions. To join the teleconference, dial (844) 861-5504 and ask to join the Crown Crafts call. The teleconference can also be accessed in listen-only mode by visiting the Company’s website at www.crowncrafts.com. The financial information to be discussed during the teleconference may be accessed prior to the call on the investor relations portion of the Company’s website. A telephone replay of the teleconference will be available one hour after the end of the call through 4:00 p.m. Central Standard Time on February 11, 2025. To access the replay, dial (877) 344-7529 in the United States or (412) 317-0088 from international locations and enter replay access code 3679859.
About Crown Crafts, Inc.
Crown Crafts, Inc. designs, markets and distributes infant, toddler and juvenile consumer products. Founded in 1957, Crown Crafts is one of America’s largest producers of infant bedding, toddler bedding, diaper bags, bibs, toys and disposable products. The Company operates through its two wholly owned subsidiaries, NoJo Baby & Kids, Inc. and Sassy Baby, Inc., which market a variety of infant, toddler and juvenile products under Company-owned trademarks, as well as licensed collections and exclusive private label programs. Sales are made directly to retailers such as mass merchants, large chain stores and juvenile specialty stores. For more information, visit the Company’s website at www.crowncrafts.com.
Forward-Looking Statements
The foregoing contains forward-looking statements within the meaning of the Securities Act of 1933, the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Such statements are based upon management’s current expectations, projections, estimates and assumptions. Words such as “expects,” “believes,” “anticipates” and variations of such words and similar expressions identify such forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties that may cause future results to differ materially from those suggested by the forward-looking statements. These risks include, among others, general economic conditions, including changes in interest rates, in the overall level of consumer spending and in the price of oil, cotton and other raw materials used in the Company’s products, changing competition, changes in the retail environment, the Company’s ability to successfully integrate newly acquired businesses, the level and pricing of future orders from the Company’s customers, the extent to which the Company’s business is concentrated in a small number of customers, the Company’s dependence upon third-party suppliers, including some located in foreign countries, customer acceptance of both new designs and newly-introduced product lines, actions of competitors that may impact the Company’s business, disruptions to transportation systems or shipping lanes used by the Company or its suppliers, and the Company’s dependence upon licenses from third parties. Reference is also made to the Company’s periodic filings with the Securities and Exchange Commission for additional factors that may impact the Company’s results of operations and financial condition. The Company does not undertake to update the forward-looking statements contained herein to conform to actual results or changes in our expectations, whether as a result of new information, future events or otherwise.
Contact:
Craig J. Demarest
Vice President and Chief Financial Officer
(225) 647-9118
cdemarest@crowncrafts.com
Investor Relations:
Three Part Advisors
Steven Hooser, Partner, or John Beisler, Managing Director
(817) 310-8776
| CROWN CRAFTS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME SELECTED FINANCIAL DATA In thousands, except percentages and per share amounts (Unaudited) | ||||||||||||||
| Three-Month Periods Ended | Six-Month Periods Ended | |||||||||||||
| September 29 2024 | October 1, 2023 | September 29 2024 | October 1, 2023 | |||||||||||
| Net sales | $ | 24,460 | $ | 24,129 | $ | 40,672 | $ | 41,252 | ||||||
| Gross profit | 6,957 | 6,596 | 10,923 | 11,338 | ||||||||||
| Gross profit percentage | 28.4 | % | 27.3 | % | 26.9 | % | 27.5 | % | ||||||
| Marketing and administrative expenses | 5,448 | 4,036 | 9,711 | 8,082 | ||||||||||
| Income from operations | 1,509 | 2,560 | 1,212 | 3,256 | ||||||||||
| Income before income tax expense | 1,127 | 2,372 | 741 | 2,878 | ||||||||||
| Income tax expense | 267 | 550 | 203 | 690 | ||||||||||
| Net income | 860 | 1,822 | 538 | 2,188 | ||||||||||
| Basic and diluted earnings per share | $ | 0.08 | $ | 0.18 | $ | 0.05 | $ | 0.21 | ||||||
| Weighted Average Shares Outstanding: | ||||||||||||||
| Basic | 10,354 | 10,199 | 10,332 | 10,177 | ||||||||||
| Diluted | 10,355 | 10,201 | 10,335 | 10,182 | ||||||||||
| (Unaudited) | ||||||||||||||
| September 29 2024 | March 31, 2024 | |||||||||||||
| Cash and cash equivalents | $ | 1,982 | $ | 829 | ||||||||||
| Accounts receivable, net of allowances | 24,375 | 22,403 | ||||||||||||
| Inventories | 33,394 | 29,709 | ||||||||||||
| Total current assets | 61,200 | 54,824 | ||||||||||||
| Operating lease right of use assets | 13,865 | 14,949 | ||||||||||||
| Finite-lived intangible assets - net | 8,048 | 2,872 | ||||||||||||
| Goodwill | 13,245 | 7,926 | ||||||||||||
| Total assets | $ | 99,350 | $ | 82,706 | ||||||||||
| Current maturities of long-term debt | 1,990 | - | ||||||||||||
| Operating lease liabilities, current | 3,785 | 3,587 | ||||||||||||
| Total current liabilities | 18,439 | 10,461 | ||||||||||||
| Long-term debt | 18,761 | 8,112 | ||||||||||||
| Operating lease liabilities, noncurrent | 10,903 | 12,138 | ||||||||||||
| Shareholders' equity | 50,835 | 51,601 | ||||||||||||
| Total liabilities and shareholders' equity | $ | 99,350 | $ | 82,706 | ||||||||||
FAQ
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