Crown Crafts wraps fiscal year with profit bump
HTT Staff -- Home Textiles Today, 6/29/2010 2:18:50 PM
Gonzales, La. - Crown Crafts' fiscal year net income rose 22.2% to $4.8 million, or 52 cents per share.
In the previous fiscal year, net income was $4.5 million or 47 cents per share - excluding charges. Including a goodwill impairment charge, Crown Crafts reported a net loss for fiscal 2009 of $17.1 million, or $1.83 per share.
Sales for the fiscal year ended March 28 fell 1.5% to $86.1 million.
Sales of bed, blankets and accessories decreased to $66.4 million vs. $71.9 million due to discontinued programs and lower replenishment orders, the company reported during its quarterly conference call.
Because the company already holds 25% of the market in those categories, making it more difficult to grow, said Randall Chestnut, chairman, president and ceo.
"So growth is going to come organically from product line expansion to complement what we do. Our room décor items have grown exponentially over the last few years," he said.
Sales of bibs, bath and disposable products expanded to $19.7 million vs. $15.5 million during the year.
Asked during Q&A about China, Chestnut said Crown Crafts over the past six months has been moving orders into some other countries to spread risk.
For the fourth quarter, net income rose 15% to $2.3 million, or 25 cents per share, from the year-earlier period's $2.0 million, or 21 cents per share, after excluding a one-time charge.
Including the charge, Crown Crafts reported a loss of $10.6 million during the comparative fourth quarter. Sales for the quarter increased 5.7% to $26.0 million.
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