Crown Crafts Margin Takes Hit
November 15, 2004,
Crown Crafts Inc. broke through with a profitable second quarter, posting $844,000 in net income for the time frame. While this result was off by nearly 9 percent from the second quarter of fiscal 2004, it did improve on the bedding and bath products manufacturer's first quarter, in which it logged a $102,000 net loss.
Crown Crafts also took a hit on its gross margin, which fell by 200 basis points, due to decreases in average selling prices per unit. This offset the company's 80-basis-point reduction in its selling, general and administrative expenses as a ratio of total sales. On a dollar basis, the company was able to shave more than 8 percent of its SG&A in the quarter.
E. Randall Chestnut, chairman, president and CEO, viewed the reduced margin as part of the “tremendous change” in the U.S. retailing and sourcing environment.
Crown Crafts Inc.
|Qtr. ended 9/26 (x000)||2004||2003||% Chg|
|Earnings per share||0.04||0.04||0.0|
|Average gross margin||20.1%||22.1%||--|
|Earnings per share||0.03||0.04||-25.0|
|Average gross margin||20.3%||22.3%||--|