GONZALES, La.-A significant sales increase from the launch of three new programs helped Crown Crafts to a 51.3 percent jump in second-quarter net income, to $1.1 million.
Those three program debuts, which Crown Crafts did not elaborate on in its financial statement, led to a sales gain of 16 percent, to $20.1 million, in the quarter which ended on Sept. 29. In addition, Crown Crafts posted a 600 basis-point gain in gross margin, which finished the quarter at 28.6 percent. The company did not record selling, general and administrative expenses in its statement on the quarter, but income from operations increased by 61.8 percent to $1.9 million.
Crediting the three programs for improving Crown Crafts’ overall financials, E. Randall Chestnut, chairman, president and CEO, added, “We will continue to be aggressive in our pursuit to diversify our portfolio and enhance our product mix.” Chestnut cited, as examples, the company’s new license agreement with Jonathan Adler for infant and toddler textiles under the designer’s Happy Chic by Jonathan Adler label, and its agreement with Gro Co., making it the U.S. distributor for the U.K.-based company’s infant products.