皇冠工藝 (CRWS) 2027 財年第一季法說會：營收成長 8%，利潤率擴張

Crown Crafts (NASDAQ: CRWS) 發布 2027 財年第一季銷售額成長、調整後毛利率擴大，並重返獲利。庫存充裕度提升支撐了營收，而關稅退款則大幅提振了 GAAP 盈餘與現金生成。

重點摘要

• 淨銷售額達到 1,680 萬美元，年增 8%，儘管消費者支出疲軟，但庫存水準改善使 Crown Crafts 能更好地滿足需求。
• 調整後毛利為 430 萬美元，在定價策略與高毛利產品組合支撐下，調整後毛利率同比上升 290 個基點至 25.6%。
• GAAP 淨利為 210 萬美元，或每股 0.19 美元，相較之下，去年同期虧損 110 萬美元，或每股虧損 0.10 美元。
• 本季度關稅退款使銷貨成本減少 370 萬美元。該公司表示，在扣除關稅相關效益後，依然實現獲利。
• 營業現金流總計 550 萬美元，債務則從本財年初的 1,400 萬美元以上下降至季末的 960 萬美元。
• 管理層表示，重新推出的 Groovy Girls 銷售超出預期，主要受加拿大市場所帶動，並計劃於秋季在歐洲及 Amazon 上市。

核心財務數據

業務與營運表現

庫存水準改善是銷售的主推動力。管理層表示，Crown Crafts 比起上一年的關稅動盪時期，處於更好的地位來滿足市場需求。

即使扣除關稅退款，毛利率仍持續改善。該公司將調整後毛利率的擴大歸因於策略性定價以及高毛利產品組合比重上升。成本控制亦降低了常態化行銷與管理費用占銷售額的百分比。

重新推出的 Manhattan Toy Groovy Girls 系列在加拿大表現尤為優異。需求強勁到 Crown Crafts 開始調配原本預計供給美國市場的庫存。管理層指出這得益於其加拿大經銷商以及 Indigo Bookstores 的行銷與上市活動推波助瀾。

海外銷售亦受惠於 Crown Crafts 新設的加拿大經銷商，該經銷商跨通路代理 Manhattan Toy 與 Sassy 兩個產品線。自去年秋季以來新增的歐洲經銷商則進一步帶來提升。

該公司正在推進營運整合與降低債務。其倉庫整合預計需要約 18 個月，預計於 2028 年 5 月完成。管理層表示相關支出不太可能發生在 2027 財年，較可能在下一個財年開始。

Crown Crafts 還調整了季配息規模，以保留更多現金用於成長投資與償還債務。管理層表示調整後的股利約提供 4% 的殖利率。

管理層展望與時程

管理層計劃於 9 月在德國 K&J 上市 Groovy Girls 以進軍歐洲市場。Amazon 的上市計畫仍定於 10 月，儘管加拿大強勁的需求可能會使 Amazon 初始開賣的產品線僅限於一部分。

目前的資本支出預計將繼續集中在 IT、ERP 升級及塑膠玩具模具等常態項目。與倉庫相關的資本支出預計最快要到下一個財年才會開始。

Manhattan Toy 在明尼蘇達州的辦公室租約將於明年 3 月底到期且不再續約。管理層正在考慮讓當地少數員工遠距工作，或是租用包含攝影棚的小型空間。

風險與觀察重點

• 管理層指出，在高利率、通膨及全球地緣政治不確定性之下，消費者支出呈現疲軟。
• 第一財季 GAAP 盈餘獲得關稅退款的重大挹注，不過管理層表示，若以調整後基準計算，公司依然維持獲利。
• Crown Crafts 申請了 560 萬至 570 萬美元的關稅退款，且已收到並入帳約 470 萬美元。約有 90 萬美元尚未收到亦未入帳。
• 加拿大對 Groovy Girls 的強勁需求使得庫存需從美國調配，這可能會限制 Amazon 初次開賣時的產品廣度。
• 倉庫整合需要前期投資，實施期約需 18 個月。

分析師問答亮點

管理層表示 Groovy Girls 在加拿大的表現超出預期。經銷商與 Indigo Bookstores 的良好關係以及相關行銷活動可能對上市有所助益，但管理層並未指出該品牌在加拿大特別強勁的更廣泛原因。

已入帳的約 470 萬美元關稅退款大部分已於 7 月收到。季末時，該金額記錄於其他流動資產而非應收帳款。

管理層預計倉庫整合計畫將於晚秋或初冬展開，並預計於 2028 年 5 月完成。本年度資本支出應主要為常態性的 IT、ERP 及產品模具費用。

新款 Motherhood 尿布包已開始在 Amazon 上銷售，但初期開賣表現較為平緩。Crown Crafts 還有兩款 NoJo 品牌包款（其中一款透過 Walmart 銷售），並持續拓展該品類。

法說會逐字稿全文

完整財報電話會議逐字稿

管理層陳述

Operator

Good afternoon, everyone. 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 Crowncraft's 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.

Olivia Elliott

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 gross margin, both on a GAAP 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 generated positive operating cash flow of nearly $5 million, similar to the March quarter. Combined with a significant reduction in our debt balance during the quarter, our balance sheet is significantly strengthened. As we mentioned on our last call, during the June quarter, we relaunched Manhattan Toy Brands Groupie Girl. pleased to say that so far, sales of this iconic line of fashion dolls has exceeded our expectations, largely driven by the Canadian market. And we believe this bodes well for continued success of this retro-inspired beloved brand. Next, I'll provide an update on our strategic initiatives to grow both our top and bottom line. Our priority is our ongoing innovative internal product development to expand our product offering. Another initiative is to build on our recent margin expansion to further drive profitability.

We're moving towards a favorable mix of higher margin products and, of course, our relentless spending disciplines. We're also striving to consolidate certain internal operations for greater efficiency, reduce our debt levels, and over the next two years, we'll be working on warehouse consolidation to further enhance our operating structure. These initiatives to create long-term value can often require upfront investment, and to that end, our Board has elected to right-size our quarterly dividend, which will provide us strategic access to a greater portion of our cash flow. That will also allow us to pay down debt and build the balance sheet strength that will support Crowncraft's growth well into the future. In essence, our new quarterly dividend allows for a well-balanced capital allocation approach that includes investing in growth initiatives and maintaining a solid balance sheet, while still rewarding our valued shareholders with what is now approximately a 4% attractive dividend yield. In closing, we had a solid quarter as we continued to execute on our business plan. While leveraging our inherent strengths, including our brands, our licenses, and our valued retail and licensing partners, our multi-pronged strategy that covers internal development of new products, reinvigorated marketing efforts, tight cost controls, and the strategic allocation of capital, positions as well for the creation of long-term shareholder value.

And now I'll turn it over to Claire to provide additional details around our quarterly results before we take your questions.

Unknown Speaker

Thank you, Olivia, and welcome everyone once again to the call. Our first quarter net sales of $16.8 million were up 8% over the prior quarter as improved inventory levels helped us capitalize on still soft consumer spending. As Olivia mentioned, we had strong growth margin performance. During the quarter, tariff refunds reduced our cost of products sold by $3.7 million. Even adjusting for this benefit, our gross profit of $4.3 million was above the prior year's $3.5 million and equates to a gross profit margin of 25.6%, which was up 290 basis points year-over-year. This section of our adjusted growth margin reflects both our strategic pricing initiatives and an increasingly favorable mix of higher margin products. We recorded marketing and administrative expense of $5.2 million for the first quarter as compared to $4.7 million a year earlier, although this quarter's figure includes just over half a million dollars of accrued incentive and compensation associated with tariff refunds.

On a normalized basis, we reduced marketing and administrative expense as a percent of net sales to 28% versus 30.5% in the first quarter of fiscal 2026, which speaks to our sharp focus on cost efficiencies, as Olivia mentioned. Moving down the income statement, we also successfully reduced net interest expense to only $190,000, well below the year ago $283,000 as a result of our efforts to reduce debt over the past year. From a GAAP perspective, we reported net income of $2.1 million, or $0.19 per share, well above the prior year loss of $1.1 million, or $0.10 per share. While first quarter net income benefited from the tariff-related adjustments described, I'll again note that on an adjusted basis, we still generated the first quarter profit versus the prior year quarter's net. loss. Turning to our balance sheet, as of June 28, we had total liquidity of $12.1 million, including cash and equivalents and availability on our revolving line of credit. During the first quarter, we significantly reduced our debt from more than 14 million at the start of the fiscal year to just 9.6 million at the end of the quarter. Not only do we reduce outstanding debt, but our net cash from operating activities of $5.5 million served to further support our balance sheet strength, putting us in a strong position to capitalize on future growth opportunities in a disciplined manner.

In summary, this was another quarter of strong execution in which we focused on what we can control while economic conditions remained soft. Even adjusted for tariff refunds, we grew revenues, expanded our growth margin, and generated stronger earnings per share than in the year-ago quarter. further strengthen our balance sheet and are well positioned to make progress against our strategic initiatives as we move through the new fiscal year. And now And now, operator, if you could please open the lines, Olivia and I would be happy to take questions. Thank you.

Operator

We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. and again that is star 1 if you would like to ask a question and our first question will come from Doug Ruth with Lenox Financial Services.

Unknown Speaker

Olivia and Claire, congratulations, fabulous report. I have several questions, so if you like I'm asking too many and I'll mind getting back in the queue. Could you give us a...

Olivia Elliott

offer some commentary of what you think is happening with Groovy Girls? So Groovy Girls has done phenomenally well in Canada. And as we look back on history, even when, you know, before we acquired Manhattan Toy, the first time they launched Groovy Girls, it appears that it took off in Canada first then as well. So, yes. We have actually sold so much in Canada at this point in time that we're having to divert inventory that should be coming to the US to go to Canada. So we're really excited about the opportunity there. And then we'll be launching Groovy Girls at K&J in Germany for the European markets in September.

Unknown Speaker

Okay. Is there a theory of why the Canadians like Groovy Girls so much?.

Olivia Elliott

We don't know. I can tell you that our distributor, they are partnered with Indigo Bookstores who really put some marketing efforts behind it and they hosted an event so that probably helped with it to.

Unknown Speaker

have such a large partner to launch with. Okay. What about, you had previously mentioned that ultimately the Groovy Girls will be on Amazon. Is there like a date that that might happen?.

Olivia Elliott

We are still hoping to launch early fall the inventory having it take off faster than we expected, it may not be the full line, but we're still targeting October sometime with at least part of the line.

Unknown Speaker

Okay, very good. And then could you explain to us what the status is of the I think you had told us there was maybe around 5 million, maybe 5 and 1 half million.

Olivia Elliott

expecting more money or do you think that's it or we're hoping to get more money so we had Requested reimbursement for 5.6 to 5.7 million in tariffs. And so far we've received about 4.7 million. And that is the portion that we booked. Most of that was received in July. A very, very small portion had been received in the first quarter. There's about 900,000.

Unknown Speaker

we still haven't received and we have not booked okay and then how is the balance sheet changed from or are you able to tell us anything about you know where the balance sheet is now versus where it was you know based on maybe tariff money.

Olivia Elliott

You mean as of today versus the quarter end? Yes. It's certainly improved by getting $4-plus million in cash in in the month of July, but that's about all we can really tell you. Oh, okay. I didn't realize the $4 million came in in July. Okay, very good. Yes. So it was booked as other current assets as opposed to a trade receivable at quarter end and quarter end.

Unknown Speaker

I see. So that's the other current asset that's on the balance sheet. Yes, and I think there's more information Claire just pointed out in – Footnote four. Footnote four. Okay, good. Okay, and then what can you tell us about the warehouse?.

Olivia Elliott

We'll be starting that project sometime in late fall or early winter. It's about an 18-month process and the plan is to get it consolidate sometime in May of 2028. So that process is not quite started yet.

Unknown Speaker

Okay and can you provide any additional details about capital expenditures and what you're thinking and how much you might be spending?.

Olivia Elliott

As of right now, our capital expenditures should just be the normal capital expenditures, which is mainly IT, so it would be any ERP upgrades that we're going through right now. molds for plastic toys, anything for the warehouse is unlikely to be spent in this fiscal year. It'll probably start sometime in the next fiscal year.

Unknown Speaker

Okay. All right. And then how about the international sales are doing so well. Can you share anything that's happening and why they're doing so well or what you're doing and the kind of.

Olivia Elliott

stuff. A lot of that's Groovy Girls in Canada, but it's more than that in Canada as well. We had two different distributors in Canada previously and starting in this calendar year, maybe a little bit in December of 25. we got a new distributor that is handling both the Manhattan Toy and Sassy product lines and taking that to all channels. So we've seen a pretty good improvement there across the board. Groovy Girls certainly added to it. And then we did starting when we went to K&J last fall, we did pick up some new distributors that started buying product maybe later in the fall, early winter. So a little bit in Europe, a little improvement as well.

Unknown Speaker

Okay. And then what can you tell us about Legoland? And we know we got that big new facility or I guess it's a year old now in Shanghai. What's happening with Legoland?.

Olivia Elliott

I don't think there's been any changes with Legoland. That was the last new park of any size and a little A lot of the parks for Legoland actually start winding down and closing for the winter. So there are some that are open, I know like Florida and California stay open year round, but a lot of them close maybe sometime in October. So those are more seasonal sales than year round.

Unknown Speaker

Okay. And then how about the Manhattan Toy Office in Minnesota? Is there any thoughts or updates on that at all?.

Olivia Elliott

That lease expires at the end of March next year. So we'll obviously not renew that lease. We're still kind of thinking about what we need, if anything at all, in Minneapolis. If we do get a lease, I mean there's two trains of thought there, we can either let, it's very small staff so they can either work from home full-time or we may need some small lease that can just hold a few people and some like a photography studio but but we will not be renewing the.

Unknown Speaker

very expensive lease that we're in right now. Okay. And my last question, is there Any new thoughts or ideas on diaper bags and how the company might proceed with that business?.

Olivia Elliott

We're still working on that product line. We did just start selling the new motherhood diaper bags. Very slow start at this point in time. It's only on Amazon. We're working on that. We have a couple of No-Joe bags, No-Joe branded, one of which is in Walmart. That's really it right now but we haven't given up on diaper bags we're just still working on it.

Unknown Speaker

Okay. You just did a fabulous job and thank you for what you did on behalf of the shareholders.

Operator

Thank you. And this now concludes our question and answer session. I would like to turn the floor back over to Olivia Elliott for closing comments.

Olivia Elliott

Thank you, Operator, and again, we appreciate everyone being on the call. We look forward to building on the early success of Groovy Girl and our other innovative products on the way. We appreciate your continued interest in Crown Crafts and will keep you posted on our progress as we move through the new fiscal year. Please feel free to reach out with any additional questions, and thanks again for your time.

Operator

for being with us. Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. You may disconnect your lines and have a wonderful day.

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[Call has ended.]