Gonzales-based baby products company Crown Crafts Inc. reported a profit of $2.1 million, or 21 cents per share, for the fiscal third quarter, which ended Dec. 27.
The results were slightly better than the $2 million, or 20 cents per share, reported for the same period a year ago. However, Crown’s sales dropped by $3 million to $20.7 million.
“Retail sales are typically slower for our product categories during the holidays when retailers shift their focus more toward seasonal goods,” President and Chief Executive Officer E. Randall Chestnut said.
Retailers kept less inventory on hand during the quarter, which lowered Crown’s replenishment orders, he said. In addition, last year Crown’s sales got a boost when a competitor left the business.
For the nine-month period, Crown reported net income of $4.6 million, or 46 cents per share, on net sales of $59.3 million. For the same period a year ago, Crown reported a profit of $3.6 million, or 36 cents per share, on net sales of $59.9 million.
Crown’s three- and nine-month results benefited from lower state income taxes, which added $315,000, or 3 cents per share. Last year’s nine-month results were lowered by $760,000 after taxes for legal fees and a settlement in a patent infringement lawsuit involving mesh crib liners.