Crown Crafts Inc (CRWS) has reported a 13.16 percent fall in profit for the quarter ended Jan. 01, 2017. The company has earned $1.86 million, or $0.19 a share in the quarter, compared with $2.14 million, or $0.21 a share for the same period last year. Revenue during the quarter dropped 16.57 percent to $17.26 million from $20.69 million in the previous year period. Gross margin for the quarter expanded 245 basis points over the previous year period to 32.67 percent. Total expenses were 82.26 percent of quarterly revenues, down from 85.16 percent for the same period last year. This has led to an improvement of 291 basis points in operating margin to 17.74 percent.
Operating income for the quarter was $3.06 million, compared with $3.07 million in the previous year period.
“We maintained our strong profitability in the third quarter, and our cash balance of $14.4 million increased from both the prior quarter and the prior-year quarter,” said E. Randall Chestnut, chairman, president and chief executive officer. “Our gross profit margin benefited from continued favorable currency exchange rates and our ongoing focus on controlling costs. Net sales in the quarter were impacted most significantly by a customer’s Black Friday sales promotion in the prior year that was not repeated this year and a credit issue with a major retailer.”
Working capital declines
Crown Crafts Inc has witnessed a decline in the working capital over the last year. It stood at $32.32 million as at Jan. 01, 2017, down 7.31 percent or $2.55 million from $34.86 million on Dec. 27, 2015. Current ratio was at 3.01 as on Jan. 01, 2017, down from 3.88 on Dec. 27, 2015. Days sales outstanding went up to 80 days for the quarter compared with 7 days for the same period last year.
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