The bankruptcy of a major customer and acquisition costs lowered the quarterly results of Crown Crafts, the Gonzales-based baby products company.
Crown reported net income of $725,000, or 7 cents per share, for its second quarter, which ended Oct. 1. A year earlier, the company earned $999,000, or 10 cents per share.
Crown's most recent results included $427,000 in credit coverage fees on a retailer that filed for bankruptcy and $212,000 in costs associated with the acquisition of Carousel Designs. Crown did not name the retailer. However, the company's major customers are Wal-Mart Stores Inc. and Toys R Us, and the latter filed for bankruptcy protection in September.
Without those expenses, Crown would have earned $1.1 million, or 11 cents per share. Those results would have matched the forecasts of stock analysts surveyed by Zacks Investment Research.
Crown increased sales by 4.1 percent for the quarter, Crown Chairman, President and Chief Executive Officer E. Randall Chestnut said.
"Despite the current retail market challenges, we feel that we are in a solid financial position going forward. We are excited about both our innovative new product designs that appeal to millennial parents and the addition of Carousel Designs as a key direct-to-consumer sales channel," he said.