The following is a summary of the Crown Crafts, Inc. (CRWS) Q4 2024 Earnings Call Transcript:

Financial Performance:

• Crown Crafts reported a Q4 2024 net sales increase to $22.6 million from $21.6 million, largely due to full quarter contributions from Manhattan Toy.

• Gross margin for Q4 improved to 23.2% compared to 21.9% the previous year, attributed to proactive cost management.

• Fiscal 2024 net sales rose to $87.6 million from $75.1 million, driven by the inclusion of Manhattan Toy.

• Gross profit for fiscal 2024 was 26.2%, slightly down from 26.4% in 2023 due to cost rises in warehouse rent, balanced by a more favorable product mix.

• Fiscal 2024 net income was $4.9 million, a decrease from $5.7 million in fiscal 2023, reflecting increased operational costs despite higher revenue.

Business Progress:

• Successfully integrated Manhattan Toy, enhancing Crown Crafts' product offerings in the toy category.

• Continued focus on managing costs amidst economic challenges, notably inflation.

• Improved profitability of Manhattan Toy by adjusting inventory and advertising strategies.

• Expanded direct-to-consumer capabilities and secured placement for Manhattan Toy products in additional retail outlets, including Walmart.

Opportunities:

• Planned to leverage brand integrations and new product developments to capitalize on opportunities in the toy and baby product markets.

• Direct-to-consumer expansions and retail placements are expected to provide growth avenues.

Risks:

• Persistent inflationary pressures increase operational costs and impact consumers, particularly in lower-income segments.

• Changes in consumer demand and macroeconomic conditions could affect inventory levels and sales strategies.

More details: Crown Crafts IR

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