CRWS - Earnings call 3 2024 | Crown Crafts, Inc.

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Operator

Good morning, and welcome to the Crown Crafts, Inc.

Third Quarter Fiscal Year 2024 Conference Call. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to John Beisler with Three Part Advisors. Please go ahead.

John Beisler

good and operator, you, morning, everyone. Thank you Quarter Fiscal appreciate joining us Third Crafts' Crown the XXXX for We Conference Call.

company's Joining CFO, this Crafts' and its is XXXX me President and quarter their a this release results. issued CEO, Crown the today press fiscal Olivia XX-Q release available and the Craig website, Crown morning, company's Earlier Demarest. Crafts filed A crowncrafts.com. third of are regarding Elliott, on copy

actual make are the During differ beyond results and today's and company to forward-looking or may statements control, will company from These certain uncertainties no obligation call, subject update expressed those and be under Crown Crafts materially statements, statements. the these is risks that implied. may to

uncertainties, Securities the filings For more information Exchange about and the other refer with company's please company's the and risk Commission. to factors

like Finally, remind the recorded, call and available is Investor replay today's Relations being you through will page. be company's I a would to

the turn Now CEO, I to like Olivia would over the President Elliott. and to call

Olivia Elliott

you, John, good everyone. Thank morning, and

third top during $X our reflect Toy, we contribution contributed line Manhattan to more net to in see bottom meaningful levels, continue historical from and results margin return saw a gross which We the nice improvements. quarter. million sales Our quarter and

monitor progresses. we reports see that indicate we As recent to the year are continue economic as outlook a environment, macro encouraged the to more favorable

rates mortgages inflationary repayments. of the that yesterday effect to to transpired well as CPI has consumers those reflected environment scale higher and to is longer-term yesterday's credit over couple of resumption the consumers from their prolonged a higher a evident be continues report. This impact strain of end in at cards past due overall lower years, the income the on loan experienced However, where -- the particularly discretionary as student the for income our interest as have

XX reopening stores Buy update Buy which encouraging the during of quarter. is Baby the Another started

more goal open stores a few as closed equal year's would get consumers locations, and benefit, they roll we gradual additional number over more part Baby's giving physical next the a to of stores out slowly be products bankruptcy. additional expect of we were for the locations this to to feel ship us these XXX product would These Buy opening benefit great did years Although the as a first-hand Buy particularly to offerings. of bedding last our be for higher-end our look openings infant that stores.

inventory their with work add major to retailers We've to as goods retailers other end the throughout the within declined $XX.X to last compared levels have to products lower Sassy of made $XX.X total our NoJo continue million also on continue carry controls We inventory shelves. of systems. million last to year our levels at million specialty good At 'XX, year. their compared year the the to inventory quarter, was to $XX.X end and the $XX.X year, same period million this fiscal from of

to detail. With like the call that, the more cover to in financials over Craig I'd to turn

Craig Demarest

to everyone. quarter. $XX.X prior Thank for compared and the pressures that $XX net current of increased economic the sales XX% mentioned. million Net is the addition essentially 'XX in the quarter year and Toy, face million accessories which consumers third quarter. bedding, increase to you, year $X as of to sales sales fiscal of Manhattan Net flat Olivia, blankets Olivia added were to approximately morning, in attributable million the good The

to in the levels versus returned current compared to million third or net is XX.X% million historical Net income year as prior quarter year share $X.X the compared was income Gross for the associated the per in million was per million profit quarter. increase prior related and Manhattan with margins have of $X.X year-to-date the Toy. quarter. diluted for primarily of quarter were the margins. quarter year or $X.X Marketing fiscal $X.X Administrative $X.XX with consistent quarter This 'XX diluted & to expenses expenses XX% share in in to $X.XX

Cash paid the to our closing of and regular our $X.X we $X.XX price. declared fiscal over at third share compared Borrowings at Turning of our paid million just the will cash the On end next balance $XXX,XXX annualized and $XX per fiscal currently which the were offer compared basis, an X% of on revolver were end at sheet. quarter dividend equivalents based our on 'XX. million be of yesterday's of $XX.X finally, quarter in end quarterly our April. the dividend, to shares the And yield now end to 'XX. at million

And back to over additional Olivia now comments. will I for turn the call

Olivia Elliott

Craig. you, Thank

approach As of strategic to in we implement plan, fiscal our approved long-term XXXX, end was which our continue we the by Board fiscal XXXX.

nearly fiscal category As a fiscal this expansion continuing projected represent in share includes market through at end reminder, growth half the overall for our our are to XXXX just of of Sassy plan XX% and sales to Manhattan Toy Toy. Toys both XXXX. compared within

categories We of adjacent new into through also product plans organic to growth combination have and a and enter strategic acquisitions.

at working to expand our Toy complement existing from the acquisition items on select development lineup product into portfolio. make opportunities price and Walmart that continue to the Manhattan we We bring sense additional points or look if are

implementing build efficiencies we is a organizational using brand technology and of to and in operating has to challenging, advertising our centered remainder acquisition, consumers the its by which are The investing spending upfront given of launch ready brands structure. place Sassy is the Manhattan own of website. and website, sell the our some brands. cost in significant on NoJo time of website the plan to the the at followed Toy Selling direct out remained the to had

track at will the of long run record expenses in a this has company the we and Our to line, business forefront. with holding continue

the by look track forward long-term remain delivering and business Overall, continue ongoing to long-standing believe through company to of dividends overall our our as We while challenges long-term our and prospects brands the evident to we capitalize macroeconomic the record improves. positioning manage value to favorable, shareholders. when economy the our

I'd that, questions. like up the line With to open for Danielle?

Operator

of Doug Financial The Ruth first Services. [Operator question Lenox from comes Instructions]

Douglas Ruth

a congratulations, and Olivia, are the couple lowering talk success A about you. for of questions Manhattan any Can you manufacturing Toy you very report. having -- Craig, cost? good

Olivia Elliott

Yes. are. we Actually,

into managed a much of mean, So everything cost the look kind I some whole pretty get this from across at went freight, we've everything with we've the decreases. manufacturing first channel, to to

Douglas Ruth

do you more Okay. Is think? there to come,

Olivia Elliott

always are We trying.

mean that So as in certain was the know, we're the some inventory things. pushing at was I I mean you higher cost. already warehouse on

that, can we I'm And that so more decreases. through we see hopeful as run

Douglas Ruth

the understanding Could us warehouses. Okay. with And are possibility what's you explain my to happening maybe combining is that of considering you that?

Olivia Elliott

the on that. stages early We're of

yes, even we're warehouses, other So California. starting locations at possibly to of look for outside

big years it so do takes commitment to some or hopefully, make when move, will it least we it's do because pretty time more. And at that, XX be a and a for

right. to get we it make want we sure So

So we're or looking that right front within now. have at next we'll end XX on And months hopefully, solution so. the the a

Douglas Ruth

Toy you get in my good. bit can fiscal is Manhattan able you relationship -- XXXX final Very anything maybe could more And into possible little And color question, Okay. a us it Walmart, give be that then the maybe is to with appreciated. might is share on Walmart?

Olivia Elliott

both longer than Sassy the with very good many to got been relationship have So yes, I've at a NoJo and company. years, Walmart. selling been them we've many, for

minimal of We more. Walmart. to very talking are that, if we amount hopefully, in a then in But go fiscal do have so opportunities opportunity the well some we'll have expand stores sales an And with XXXX. to

Douglas Ruth

report. a Okay. earnings tremendous Congratulations, really

Olivia Elliott

Thank you, Doug.

Operator

remarks. I further like no Instructions] would to As over back call questions. for there closing are Elliott [Operator turn the to Olivia

Olivia Elliott

your you interest quarter Thank We continued year you forward speaking we again to results fiscal in XXXX look our fourth you. when our Thank for with company. in June. report and

Operator

you concluded. Thank now presentation. for has today's conference attending The

You may now disconnect.

Crown Crafts (CRWS) 14 Feb 242024 Q3 Earnings call transcript