Crown Crafts profits take a hit in 4Q

GONZALES, La. — With sales still trending down as customers tweak their stockpiles in a tricky retail environment, fourth fiscal quarter profits at Crown Crafts Inc. fell by 24.8 percent, to $1.6 million from $2.1 million last year.

Sales in the quarter ended March 28 slipped by 6.5 percent, to $25.0 million from $26.8 million last year. While sales are still soft, the top-line picture improved considerably from earlier in the year, most notably during the second fiscal quarter, when sales tumbled by 22.5 percent.

And while earnings were off by roughly a fourth during the closing quarter, investors were cheered as profits for all of last year climbed by 24.8 percent, to $3.1 million from $2.5 million, as the company shucked off a $1.8 million restructuring charge that dogged the bottom line the year before.

CEO E. Randall Chestnut said while the year "was disappointing in terms of sales, the company is very proud of its many accomplishments. We are pleased to report continuing profitability, improved sourcing and a stronger balance sheet."

The company said that over the past 12 months the shortfall, mostly during the second quarter, stemmed from "changes in buying patterns by several customers, some of whom lowered on-hand inventory levels in response to the sluggish economy." Comparisons with the prior year were somewhat skewed, the company said, because during 2003, it shipped "several new product placements to key customers, which were not repeated at the same levels in the current year."

Home & Textiles Today Staff | News & Commentary

 Home Textiles Today is the market-leading brand covering the home and textiles markets, offering a comprehensive package of print and online products. Home & Textiles Today provides industry news, product trends and introductions, exclusive industry research, consumer data, store operations solutions, trade show news and much more.

Featured Video

  • Live From New York: Fashion Comes Across the Pond

    Camera Icon More Videos

Subscribe to
Home & Textiles Today eDaily
Receive the news you need to know about the trends in the industry delivered right to your inbox.


HTT Cover October 2017

See the October 2017 issue of Home & Textiles Today. In this issue, we look at the Top 25 Online Retailers.  H&TT's exclusive annual ranking of the biggest online sellers of home textiles finds that while pure play etailers continue to fly, bricks & clicks are digging into omnichannel. See details!