Crown Crafts Net Falls 32 Percent in Fourth Quarter
GONZALES, La.-Fourth-quarter net income for Crown Crafts totaled $1.6 million, down a precipitous 32 percent from the fourth quarter of one year ago.
Higher-than-expected raw materials costs--along with rising costs for labor, transportation and currency associated with the textile company's China operations--hurt its bottom line in the final quarter of its fiscal year, which ended on April 3. These extra costs were reflected in the 630 basis-point drop in its gross margin, to 21.1 percent; and in the 33 percent decrease in its operating income (Crown Crafts did not break out selling, general and administrative expenses in the quarter). Net sales did gain 4.6 percent in the quarter, finishing at $27.2 million.
For the fiscal year as a whole, Crown Crafts' net fell 10 percent to $4.3 million. Net sales rose 4.5 percent to $90 million.
E. Randall Chestnut, chairman, president and CEO, said, "While we are certainly not satisfied with our fourth-quarter financial results, we believe the positive operational momentum we built throughout the year remains strong and will serve us well as we move forward in fiscal 2012."