Crown Crafts profit up despite sales dip
HTT Staff -- Home Textiles Today, 2/13/2013 11:59:26 AM
Gonzales, La. - Crown Crafts, producer of goods for infants and babies, generated a 3.6% increase in net income during the third quarter as gross margin rose to 26.3% of sales compared with 24.2% in last year's 3Q.
Net income for the quarter ended Dec. 30 was $1.6 million, or 16 cents per share. Sales fell 6.9% to $20.1 million.
The company attributed the sales decline to the discontinuation of an unprofitable infant bedding program as well as the sluggish economy.
"We also ended the quarter with no debt on our books," said E. Randall Chestnut, chairman, president and ceo. "These results reflect the strength of our product lines, the success of our cost-control and pricing initiatives, and the overall financial strength of the company."
Net income for the nine-month period rose 6.4% to $3.3 million, or 33 cents per share. Gross margin improved to 24.9% of sales compared to 22.8% in the year-ago period.
Sales year-to-date dropped 9.4% to $54.8 million.
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