Crown Crafts, Inc. engages in designing, marketing, and distribution of infant, toddler, and juvenile products. It also offers infant and toddler bedding, blankets and swaddle blankets, nursery and toddler accessories, room decor, reusable and disposable bibs, and burp cloths, Hooded Bath towels and wash clothes, development toys and feeding and care goods. Its brands include Nojo, Neat Solutions, Sassy and Carousel Designs. The company was founded by Philip Bernstein in 1957 and is headquartered in Gonzales, LA.
Net Sales: Sales increased by $482,000, or 3.1%, for the three-month period ended June 30, 2019 compared with the same period in the prior year, primarily due to higher overall replenishment orders. Sales of bibs, bath, developmental toys, feeding, baby care and disposable products in the current year increased by $1.3 million over the prior year. These increases were partially offset by a decrease in the current year of sales of bedding, blankets and accessories of $808,000.
Gross Profit: Gross profit increased by $423,000 and increased from 26.7% of net sales for the three-month period ended July 1, 2018 to 28.5% of net sales for the three-month period ended June 30, 2019. The increase in amount is primarily due to the net higher sales levels in the current year quarter.
Marketing and Administrative Expenses: Marketing and administrative expenses decreased in amount by $233,000 and decreased from 23.8% of net sales for the three-month period ended July 1, 2018 to 21.7% of net sales for the three-month period ended June 30, 2019. The decrease is primarily due to the elimination in the current year of $210,000 in charges incurred in the prior year associated with transferring most of the Sassy-branded developmental toy, feeding and baby care product line inventory from Grand Rapids, Michigan to the Company’s distribution facility in Compton, California.