Company: CRWS
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001437749-25-026346
Chunk: 12

Company: CROWN CRAFTS INC
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 2
Chunk 12
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Net loss                                         (1,104   )                        (322   )          (782   )            242.9   %
% of net sales                                     -7.1   %                        -2.0   %                                       
 
    12 

  

Net Sales: Sales decreased to $15.5 million for the three months ended June 29, 2025, compared with $16.2 million for the three months ended June 30, 2024, a decrease of $734,000, or 4.5%. Sales of bedding and diaper bags increased by $540,000, and sales of bibs, toys and disposable products decreased by $1.3 million. The Acquisition added $2.1 million in net sales during the three months ended June 29, 2025; however, sales across all categories were negatively affected by inventory shortages resulting from the Company’s strategy to minimize the impact of the extremely high tariffs in effect during the first half of the quarter.
Gross Profit: Gross profit decreased by $448,000 from the prior year resulting in a decrease from 24.5% of net sales for the three-month period ended June 30, 2024 to 22.7% of net sales for the three-month period ended June 29, 2025. This decrease in gross profit is primarily a result of increased tariff costs associated with products imported from China.
Marketing and Administrative Expenses: Marketing and administrative expenses increased by $454,000 and increased from 26.3% of net sales for the three-month period ended June 30, 2024 to 30.5% of net sales for the three-month period ended June 29, 2025. The increase in the current year period includes increased advertising costs of $268,000 as well as increased marketing and administrative costs associated with the Acquisition.
Income Tax Benefit: The Company’s provision for income taxes is based upon an estimated annual effective tax rate (“ETR”) of 22.3% for the three-month period ended June 29, 2025, as compared with an estimated annual ETR of 21.8% for the three-month period ended June 30, 2024.
 
The Company recorded discrete income tax charges of $30,000 and $20,000 during the three-month periods ended June 29, 2025 and June 30, 2024, respectively, to reflect the effects of the tax shortfalls and excess tax benefits arising from the forfeiture and expiration of stock