Crown Crafts broadens babies' role
August 18, 2003-- Home Textiles Today,
Crown Crafts is joining the great Asian migration.
The company is now transitioning its sourcing contracts from Mexico to Asia, and has closed its Mexican manufacturing facility, Burgundy Interamerica, at a cost of $129,000, the company said during its 2nd quarter conference call last week.
The ongoing initiative that should produce a double-digit improvement in gross margin dollars, according Randall Chestnut, chairman, president and ceo. The Mexican facility did roughly $4.4 million in volume.
"We are starting to see the benefit of better global sourcing coming back to us this year," he added.
In licensing, the company's Ocean Pacific infant line "has not been an overwhelming success" even though it is anticipated to do better in the near term, he said.
Babies R' Us has recently picked up one of Crown Crafts' four newly proposed bedding programs with the retailer and will be rolling it out across the whole chain shortly. Crown Crafts is now moving into nursery décor, primarily hard accessories.
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