Crown Crafts shows more profit
Staff Staff -- Furniture Today, November 16, 2006
Gonzales, La. – Still building sales and margins in a tricky retail environment, and chalking up a $4.1 million gain as it slashed its debt as part of a sweeping refinancing, Crown Crafts Inc. recorded a second fiscal quarter profit of $5.3 million, more than four times the size of $1.2 million in year-ago earnings.
Sales at the diversified producer of infant and juvenile bedding rose by 1.4%, to $21.6 million from $21.2 million, as gains in the core bedding business offset a continuing slide in fashion throws.
The lion's share of the earnings pickup resulted from a $4.1 million gain stemming from a recent refinancing that reduced the book value of debt to $2.9 million from $7.0 million. But even without that big gain, operating profits rose by 50.2%, to $3.0 million from $2.0 million, swollen by suddenly wider margins.
Breaking results out by category, bedding, blankets and accessories sales grew by 2.5%, to $15.2 million, and sales of bibs and bath were flat at $5.7 million. Acting as a drag was the Churchill Weavers division which produces pricey hand-woven throws, where sales declined by 10.2%, to $655,000.
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