Gonzales, LA, February 9--Crown Crafts reported net sales for the third quarter of fiscal year 2005, which ended December 26, 2004, of $20.7 million, which is the same as net sales for the third quarter of fiscal year 2004.
Net income for the quarter was $918,000, or $0.04 per diluted share, compared to net income of $719,000, or $0.03 per diluted share, for the third quarter of fiscal year 2004.
For the first nine months of fiscal year 2005, the Company had net sales of $60.6 million, down from $61.2 million in the first nine months of fiscal year 2004. Net income for the first nine months of the current year was $1.7 million, or $0.08 per diluted share, compared to net income of $1.5 million, or $0.07 per diluted share, in the prior year.
Total net sales for the third quarter of fiscal year 2005 were stable as compared to the third quarter of fiscal year 2004. Although the Company has experienced a decline in gross margin, it has experienced comparable savings in marketing, administrative and interest expenses.
"The retailing and sourcing environment in the United States is experiencing tremendous change. As quotas from China are being eliminated, pricing pressures are driving margins down. During the third quarter, the Company completed its transition from domestic contracting to Asian sourcing. In addition, direct-to-retail licenses which have been in effect through much of fiscal year 2005 have deflated top-line gross sales and continue to affect margins negatively," commented E. Randall Chestnut, Chairman, President and Chief Executive Officer of the Company.
