Crown Crafts, Inc. (CRWS) Q1 2027 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good afternoon, everyone, and welcome to the Crown Crafts Fiscal Year 2027 First Quarter Conference Call. During today's call, the company may make certain forward-looking statements, and actual results may differ materially from those expressed or implied. These statements are subject to risks and uncertainties that may be beyond Crown Crafts' control, and the company is under no obligation to update these statements. For more information about the company's risk factors and other uncertainties, please refer to the company's filings with the Securities and Exchange Commission, including its annual report on Form 10-K. With that, I would now like to turn the call over to President and Chief Executive Officer Olivia Elliott. Please go ahead. Thank you, Operator, and thank you, everyone, for joining this afternoon's call. Today after the close, Crown Crafts reported very solid quarterly results given the still solved demand environment. We accomplished this by focusing on what we can control, and our team did a terrific job executing on our strategy. We were able to grow our net sales 8% despite the uncertainty that consumers continue to feel around high interest rates, inflation, and global geopolitical events. Improved inventory levels account for most of the growth. as we were able to better meet demand than during last year's tariff instability. Just as important, we were able to drive a higher growth margin, both on a gap basis and also when adjusting for tariff refunds, as Claire will walk us through in a moment. On an adjusted basis, our growth margin for the quarter climbed nearly three full percentage points year over year to 25.6%. As a result, we were able to produce positive net income versus the loss reported in the prior year period, and we once again gen...