Crown Craft sales down
Staff -- Kids Today, 2/15/2007 12:00:00 AM
Infant and juvenile home textiles supplier Crown Crafts today reported third fiscal quarter net income of $0.6 million, or $0.06 per diluted share, compared to net income of $1.1 million, or $0.05 per diluted share, for the same period one year ago. As a result of the company's debt refinancing in July 2006, diluted shares decreased from 21.7 million to 10.3 million for the current year quarter as compared to the prior year quarter.
Net sales for the third quarter were $16.5 million, down 7.8% from $17.9 million a year ago, mainly due to a $1.1 million decrease in sales of bedding, blankets and accessories and a $0.4 million decrease in sales of bib and bath products.
Crown Crafts chairman, president and ceo E. Randall Chestnut allayed most of the dropoff to “pricing pressures by two retailers.” He noted, “The company has made a decision to not participate in programs which cannot be profitable.” Chestnut pointed out, “We are pleased that we were able to improve income before income taxes from $1,076,000 to $1,358,000, or 26%, before the $550,000 valuation allowances associated with the anticipated closure of Churchill Weavers. In addition, the balance sheet has improved nicely, and our total debt level was held to $6.5 million.”
Wall Street was less than impressed, with shares of the stock plunging 20% in morning trading, and stabilizing at an 18% fall by mid-day.
We would love your feedback!
Featured Company
-
FurnitureCore.com
FurnitureCore.com is a dynamic web application aimed at the furniture industry. Retailers and manufacturers alike will find our deep reserve of tools to be exactly what their furniture business needs.www.furniturecore.com... more
