NASDAQ:CRWS Crown Crafts Q1 2024 Earnings Report $3.05 +0.01 (+0.33%) Closing price 04/25/2025 03:59 PM EasternExtended Trading$3.04 -0.01 (-0.33%) As of 04/25/2025 06:05 PM Eastern Extended trading is trading that happens on electronic markets outside of regular trading hours. This is a fair market value extended hours price provided by Polygon.io. Learn more. Earnings History Crown Crafts EPS ResultsActual EPS$0.04Consensus EPS N/ABeat/MissN/AOne Year Ago EPSN/ACrown Crafts Revenue ResultsActual Revenue$17.12 millionExpected RevenueN/ABeat/MissN/AYoY Revenue GrowthN/ACrown Crafts Announcement DetailsQuarterQ1 2024Date8/16/2023TimeN/AConference Call DateWednesday, August 16, 2023Conference Call Time9:00AM ETUpcoming EarningsCrown Crafts' Q4 2025 earnings is scheduled for Thursday, June 26, 2025Conference Call ResourcesConference Call AudioConference Call TranscriptQuarterly Report (10-Q)Earnings HistoryCompany ProfilePowered by Crown Crafts Q1 2024 Earnings Call TranscriptProvided by QuartrAugust 16, 2023 ShareLink copied to clipboard.There are 4 speakers on the call. Operator00:00:00Hello, and welcome to the Crown Crafts Inc. 1st Quarter FY 2024 Conference Call. All participants will be in listen only mode. After today's presentation, there will be an opportunity to ask questions. Please note, today's event is being recorded. Operator00:00:26I'd now like to turn the conference over to John Beisler, Investor Relations. Please go ahead. Speaker 100:00:31Thank you, operator, and good morning, everyone. We appreciate you joining us for the Crown Crafts' Q1 fiscal 2024 conference call. Joining me on the call today are Crown Crafts' President and CEO, Olivia Elliott and the company's CFO, Craig Demarest. Earlier this morning, Crown Crafts filed its we will conduct a question and answer session. Please note that we will conduct a question and answer session. Speaker 100:00:53Please note that we will conduct a press release regarding their Q1 fiscal 'twenty four financial results. A copy of this release is available on the company's website, .com. During today's call, the company will make certain forward looking statements and actual results may differ These statements are subject to risks and uncertainties that may be beyond Crown Craft's control And the company is under no obligation to update these statements. For more information about the company's risk factors and other uncertainties, please refer to the company's filings with the Securities and Exchange Commission. Finally, I would like to remind you today's call is being recorded Now I would like to turn the call over to the President and CEO of Crown Crafts, Olivia Elliott. Speaker 200:01:42Thank you, John, and good morning, everyone. I would first like to thank our entire team for their resiliency as we reported another profitable quarter Despite the multiple headwinds impacting our business. We also completed our 1st full quarter integrating Manhattan Toy and we'll share our progress with you a little bit later. Our results for the Q1 of fiscal 2024 reflect the ongoing challenges facing the consumer. Food and housing costs continue to run above the overall inflation rate and gasoline prices have begun to rise again. Speaker 200:02:18All of these items continue to limit the amount of discretionary income available to consumers, causing them to either purchase fewer items or trade down to lower priced products. Retailers are also carrying less inventory, in some cases going from 10 weeks of product on hand to 6. Additionally, the recent closure of all Buy Buy Baby stores has left the marketplace without a national brand with brick and mortar locations to sell higher end company branded infant bedding. Although some of the prior Buy Buy Baby locations are reopening under a different brand and the Babies R Us brand has been revived, they are both in the very early stages and represent a small fraction of the locations both of these brands previously operated. In relationships with current customers and implementing cost reduction initiatives across our business. Speaker 200:03:22Lastly, we paid our regular quarterly dividend, which is a testament to our long term commitment to drive shareholder value. With that, I would like to turn it over to Craig to cover the financials in more detail. Speaker 300:03:35Thank you, Olivia. Good morning, everyone. Net sales for the Q1 of fiscal 'twenty four increased 9% to $17,100,000 compared to $15,700,000 in the prior year quarter. The increase is primarily attributable to the addition of Manhattan Toy, which added $3,700,000 in net sales to the current year quarter and more than offset reduced orders from our customers as a result of ongoing macroeconomic conditions as well as the closure of Buy Buy Baby stores, which accounted for approximately $1,400,000 in sales in the prior year quarter. Gross margin for the quarter was 27 point 7% compared to 32.8% in the Q1 of fiscal 2023. Speaker 300:04:21The margin decrease was primarily attributable to the higher lease costs for our warehouse in California. Marketing and administrative expenses were $4,000,000 versus 3,400,000 in the prior year quarter. The increase is primarily driven by expenses of Manhattan Toy, including transaction costs of approximately 116,000 which were partially offset by lower compensation costs. Net income for the quarter was $366,000 or $0.04 per diluted share, Compared to net income of $1,400,000 or $0.14 per diluted share in the prior year quarter. Turning to our balance sheet. Speaker 300:05:01Cash and cash equivalents at the end of the Q1 were $765,000 compared to $1,700,000 at the end of fiscal 2023 And borrowings on our revolver decreased from $12,700,000 at the end of 'twenty three to $6,500,000 at the end of the Q1. Finally, we paid our regular quarterly dividend of $0.08 per share and yesterday declared our next quarterly dividend, which will be paid in October. On an annualized basis, our shares currently offer a 6.6% yield based on yesterday's closing price. Now I will turn the call back over to Olivia for additional comments. Speaker 200:05:43Thank you, Craig. We made progress on a number of the strategic we identified last quarter with Manhattan Toy, including negotiating better pricing with vendors in China, And we have received positive initial feedback from customers on new products. As Craig mentioned, Manhattan Toy added $3,700,000 in sales for the quarter. As we noted in our last call, the March June quarters are typically the slowest periods for Manhattan Toy, with an increase in the September quarter, Peaking in the December quarter, which has historically accounted for 35% to 40% of annual sales. We believe the previously mentioned items combined with expanding our sales channels and improved freight costs can lead Manhattan Toy to be accretive to earnings by the end of fiscal 2024. Speaker 200:06:31Our subsidiaries are collaborating together to share contacts and expand their reach as they pursue cross selling and international opportunities. Finally, all of our subsidiaries will be displaying at the K and J Trade Show in Germany next month, where we will show some of our newer designs to the international markets. We will also be in attendance at the New York Toy Fair the 1st weekend in October. Overall, we continue to proactively we remain optimistic about the prospects of our company and look forward to updating you on our progress next quarter. With that, I'd like to open up the line for questions. Operator00:08:10Right. At this time, I would like to return the floor to Olivia Elliott for any closing Speaker 200:08:16Thank you for your continued interest in our company. We will be participating in the 3 part Advisors Ideas Conference in Chicago on AugustRead morePowered by Conference Call Audio Live Call not available Earnings Conference CallCrown Crafts Q1 202400:00 / 00:00Speed:1x1.25x1.5x2x Earnings DocumentsQuarterly report(10-Q) Crown Crafts Earnings HeadlinesDividend Investors: Don't Be Too Quick To Buy Crown Crafts, Inc. (NASDAQ:CRWS) For Its Upcoming DividendMarch 9, 2025 | uk.finance.yahoo.comCrown Crafts (NASDAQ:CRWS) Will Pay A Dividend Of $0.08February 15, 2025 | finance.yahoo.comTrump Orders 'National Digital Asset Stockpile'‘Digital Asset Reserve’ for THIS Coin??? Get all the details before this story gains even more tractionApril 26, 2025 | Crypto 101 Media (Ad)Crown Crafts, Inc. (NASDAQ:CRWS) Q3 2025 Earnings Call TranscriptFebruary 13, 2025 | msn.comCrown Crafts, Inc.: Crown Crafts Announces Third Quarter Fiscal 2025 Financial ResultsFebruary 12, 2025 | finanznachrichten.deCrown Crafts projects growth in diaper bags and toy categories while optimizing warehouse costsFebruary 12, 2025 | msn.comSee More Crown Crafts Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like Crown Crafts? Sign up for Earnings360's daily newsletter to receive timely earnings updates on Crown Crafts and other key companies, straight to your email. Email Address About Crown CraftsCrown Crafts (NASDAQ:CRWS), through its subsidiaries, operates in the consumer products industry in the United States and internationally. It provides infant, toddler, and juvenile products, including infant and toddler beddings; blankets and swaddle blankets; dolls and plush toys; nursery and toddler accessories; room décors; reusable and disposable bibs; burp cloths; hooded bath towels and washcloths; reusable and disposable placemats, and floor mats; disposable toilet seat covers and changing mats; developmental toys; feeding and care goods; and other infant, toddler, and juvenile soft goods. The company sells its products primarily to mass merchants, large chain stores, mid-tier retailers, juvenile specialty stores, value channel stores, grocery and drug stores, restaurants, internet accounts, wholesale clubs and internet-based retailers through a network of sales force and independent commissioned sales representatives. Crown Crafts, Inc. was incorporated in 1957 and is headquartered in Gonzales, Louisiana.View Crown Crafts ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles Markets Think Robinhood Earnings Could Send the Stock UpIs the Floor in for Lam Research After Bullish Earnings?Market Anticipation Builds: Joby Stock Climbs Ahead of EarningsIs Intuitive Surgical a Buy After Volatile Reaction to Earnings?Seismic Shift at Intel: Massive Layoffs Precede Crucial EarningsRocket Lab Lands New Contract, Builds Momentum Ahead of EarningsAmazon's Earnings Could Fuel a Rapid Breakout Upcoming Earnings Cadence Design Systems (4/28/2025)Welltower (4/28/2025)Waste Management (4/28/2025)AstraZeneca (4/29/2025)Mondelez International (4/29/2025)PayPal (4/29/2025)Starbucks (4/29/2025)DoorDash (4/29/2025)Honeywell International (4/29/2025)Regeneron Pharmaceuticals (4/29/2025) Get 30 Days of MarketBeat All Access for Free Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools. Start Your 30-Day Trial MarketBeat All Access Features Best-in-Class Portfolio Monitoring Get personalized stock ideas. Compare portfolio to indices. Check stock news, ratings, SEC filings, and more. Stock Ideas and Recommendations See daily stock ideas from top analysts. Receive short-term trading ideas from MarketBeat. Identify trending stocks on social media. Advanced Stock Screeners and Research Tools Use our seven stock screeners to find suitable stocks. Stay informed with MarketBeat's real-time news. Export data to Excel for personal analysis. Sign in to your free account to enjoy these benefits In-depth profiles and analysis for 20,000 public companies. Real-time analyst ratings, insider transactions, earnings data, and more. Our daily ratings and market update email newsletter. Sign in to your free account to enjoy all that MarketBeat has to offer. Sign In Create Account Your Email Address: Email Address Required Your Password: Password Required Log In or Sign in with Facebook Sign in with Google Forgot your password? Your Email Address: Please enter your email address. Please enter a valid email address Choose a Password: Please enter your password. Your password must be at least 8 characters long and contain at least 1 number, 1 letter, and 1 special character. Create My Account (Free) or Sign in with Facebook Sign in with Google By creating a free account, you agree to our terms of service. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
There are 4 speakers on the call. Operator00:00:00Hello, and welcome to the Crown Crafts Inc. 1st Quarter FY 2024 Conference Call. All participants will be in listen only mode. After today's presentation, there will be an opportunity to ask questions. Please note, today's event is being recorded. Operator00:00:26I'd now like to turn the conference over to John Beisler, Investor Relations. Please go ahead. Speaker 100:00:31Thank you, operator, and good morning, everyone. We appreciate you joining us for the Crown Crafts' Q1 fiscal 2024 conference call. Joining me on the call today are Crown Crafts' President and CEO, Olivia Elliott and the company's CFO, Craig Demarest. Earlier this morning, Crown Crafts filed its we will conduct a question and answer session. Please note that we will conduct a question and answer session. Speaker 100:00:53Please note that we will conduct a press release regarding their Q1 fiscal 'twenty four financial results. A copy of this release is available on the company's website, .com. During today's call, the company will make certain forward looking statements and actual results may differ These statements are subject to risks and uncertainties that may be beyond Crown Craft's control And the company is under no obligation to update these statements. For more information about the company's risk factors and other uncertainties, please refer to the company's filings with the Securities and Exchange Commission. Finally, I would like to remind you today's call is being recorded Now I would like to turn the call over to the President and CEO of Crown Crafts, Olivia Elliott. Speaker 200:01:42Thank you, John, and good morning, everyone. I would first like to thank our entire team for their resiliency as we reported another profitable quarter Despite the multiple headwinds impacting our business. We also completed our 1st full quarter integrating Manhattan Toy and we'll share our progress with you a little bit later. Our results for the Q1 of fiscal 2024 reflect the ongoing challenges facing the consumer. Food and housing costs continue to run above the overall inflation rate and gasoline prices have begun to rise again. Speaker 200:02:18All of these items continue to limit the amount of discretionary income available to consumers, causing them to either purchase fewer items or trade down to lower priced products. Retailers are also carrying less inventory, in some cases going from 10 weeks of product on hand to 6. Additionally, the recent closure of all Buy Buy Baby stores has left the marketplace without a national brand with brick and mortar locations to sell higher end company branded infant bedding. Although some of the prior Buy Buy Baby locations are reopening under a different brand and the Babies R Us brand has been revived, they are both in the very early stages and represent a small fraction of the locations both of these brands previously operated. In relationships with current customers and implementing cost reduction initiatives across our business. Speaker 200:03:22Lastly, we paid our regular quarterly dividend, which is a testament to our long term commitment to drive shareholder value. With that, I would like to turn it over to Craig to cover the financials in more detail. Speaker 300:03:35Thank you, Olivia. Good morning, everyone. Net sales for the Q1 of fiscal 'twenty four increased 9% to $17,100,000 compared to $15,700,000 in the prior year quarter. The increase is primarily attributable to the addition of Manhattan Toy, which added $3,700,000 in net sales to the current year quarter and more than offset reduced orders from our customers as a result of ongoing macroeconomic conditions as well as the closure of Buy Buy Baby stores, which accounted for approximately $1,400,000 in sales in the prior year quarter. Gross margin for the quarter was 27 point 7% compared to 32.8% in the Q1 of fiscal 2023. Speaker 300:04:21The margin decrease was primarily attributable to the higher lease costs for our warehouse in California. Marketing and administrative expenses were $4,000,000 versus 3,400,000 in the prior year quarter. The increase is primarily driven by expenses of Manhattan Toy, including transaction costs of approximately 116,000 which were partially offset by lower compensation costs. Net income for the quarter was $366,000 or $0.04 per diluted share, Compared to net income of $1,400,000 or $0.14 per diluted share in the prior year quarter. Turning to our balance sheet. Speaker 300:05:01Cash and cash equivalents at the end of the Q1 were $765,000 compared to $1,700,000 at the end of fiscal 2023 And borrowings on our revolver decreased from $12,700,000 at the end of 'twenty three to $6,500,000 at the end of the Q1. Finally, we paid our regular quarterly dividend of $0.08 per share and yesterday declared our next quarterly dividend, which will be paid in October. On an annualized basis, our shares currently offer a 6.6% yield based on yesterday's closing price. Now I will turn the call back over to Olivia for additional comments. Speaker 200:05:43Thank you, Craig. We made progress on a number of the strategic we identified last quarter with Manhattan Toy, including negotiating better pricing with vendors in China, And we have received positive initial feedback from customers on new products. As Craig mentioned, Manhattan Toy added $3,700,000 in sales for the quarter. As we noted in our last call, the March June quarters are typically the slowest periods for Manhattan Toy, with an increase in the September quarter, Peaking in the December quarter, which has historically accounted for 35% to 40% of annual sales. We believe the previously mentioned items combined with expanding our sales channels and improved freight costs can lead Manhattan Toy to be accretive to earnings by the end of fiscal 2024. Speaker 200:06:31Our subsidiaries are collaborating together to share contacts and expand their reach as they pursue cross selling and international opportunities. Finally, all of our subsidiaries will be displaying at the K and J Trade Show in Germany next month, where we will show some of our newer designs to the international markets. We will also be in attendance at the New York Toy Fair the 1st weekend in October. Overall, we continue to proactively we remain optimistic about the prospects of our company and look forward to updating you on our progress next quarter. With that, I'd like to open up the line for questions. Operator00:08:10Right. At this time, I would like to return the floor to Olivia Elliott for any closing Speaker 200:08:16Thank you for your continued interest in our company. We will be participating in the 3 part Advisors Ideas Conference in Chicago on AugustRead morePowered by