Gonzales-based Crown Crafts Inc. reported net income of $1.9 million, or 19 cents per share, up from $1.6 million, or 16 cents per share, for the fourth quarter of the company’s fiscal year, which ended April 1.
The baby and infant products company’s fourth-quarter sales were $24.8 million, down from $27.2 million a year earlier.
The fourth-quarter results boosted net income for the fiscal year to $5 million, or 52 cents per share, compared to $4.3 million, or 45 cents per share, a year earlier. The company’s annual sales dropped $85.3 million, compared to $90 million a year ago.
The company was able to increase profits despite the industry’s difficult macroeconomic conditions, such as record-setting cotton prices, Crown President, Chief Executive Officer and Chairman E. Randall Chestnut said in a news release. The strength of Crown’s products allowed the company to pass along price increases where possible, and the company redesigned several product lines to reduce the use of cotton.
From late 2010 through most of fiscal 2012, Crown’s results have been hampered by high raw material costs, including higher cotton prices and double-digit increases in labor costs in China, where Crown’s products are made.
Chestnut said Crown also increased sales of its company-branded product lines by around 7 percent, and the company has generated sales from newer business channels, such as pet bedding and the “dollar store” segment.