Crown Crafts Inc (CRWS) 2023 Q1 法說會逐字稿

Hello, and good day. Welcome to the Crown Crafts, Inc. First Quarter Fiscal Year 2023 Conference Call. (Operator Instructions) Please note, this event is being recorded. I would now like to turn the conference over to Craig Demarest, Chief Financial Officer of Crown. Please go ahead.

你好，美好的一天。歡迎來到 Crown Crafts, Inc. 2023 財年第一季度電話會議。 （操作員說明）請注意，此事件正在記錄中。我現在想將會議轉交給 Crown 首席財務官 Craig Demarest。請繼續。

Thank you, MJ. Welcome to the Crown Crafts Investor Conference Call for the First Quarter of Fiscal Year 2023. With me today is Olivia Elliott, the company's President and Chief Executive Officer. A telephone replay of this call will be available 1 hour after the end of the call through 4:00 p.m. Central Time on November 17. Also, a web replay of this call will be available for 90 days and can be accessed by visiting our website at www.crowncrafts.com.

謝謝你，MJ。歡迎參加 2023 財年第一季度 Crown Crafts 投資者電話會議。今天和我在一起的是公司總裁兼首席執行官 Olivia Elliott。通話結束後 1 小時至下午 4:00 將提供此通話的電話重播。中央時間 11 月 17 日。此外，本次電話會議的網絡回放將提供 90 天，可通過訪問我們的網站 www.crowncrafts.com 訪問。

Before we begin, I would like to remind listeners of the cautionary language regarding forward-looking statements contained in the press release. That same language applies to comments made in today's conference call. I will now turn the call over to Olivia.

在我們開始之前，我想提醒聽眾注意新聞稿中有關前瞻性陳述的警告性語言。同樣的語言也適用於今天電話會議中的評論。我現在將把電話轉給 Olivia。

Good afternoon, and thank you for joining us for our first quarter fiscal year 2023 conference call. I'll start out with some general comments about our ongoing strategy, our quarterly results and our current market trends. Then I'll turn it over to Craig, who will discuss our financial results in more detail. After that, I'll have a few more comments and then we'll take any questions you may have.

下午好，感謝您加入我們的 2023 財年第一季度電話會議。我將首先對我們的持續戰略、季度業績和當前市場趨勢發表一些一般性評論。然後我將把它交給克雷格，他將更詳細地討論我們的財務結果。在那之後，我會再發表一些評論，然後我們會回答你可能有的任何問題。

As I mentioned during last quarter's conference call, we're excited about our long-term opportunities, and we're moving forward with our strategic plan, which includes expanding in the toy category, growing our product offerings, both organically and through acquisition, increasing our direct sales to consumers, reducing operating costs and making further investments to enhance our technology and improve our organizational structure.

正如我在上個季度的電話會議中提到的，我們對我們的長期機會感到興奮，我們正在推進我們的戰略計劃，其中包括擴大玩具類別，增加我們的產品供應，無論是有機地還是通過收購，增加我們對消費者的直接銷售，降低運營成本並進行進一步投資以增強我們的技術並改善我們的組織結構。

At the same time, we're managing our business to maximize profitability in the face of current market challenges. We're able to address these challenges from a position of strength due to our solid partnerships with retailers, our position in the marketplace and the efforts of our exceptional team.

與此同時，面對當前的市場挑戰，我們正在管理我們的業務以最大限度地提高盈利能力。由於我們與零售商的穩固合作夥伴關係、我們在市場中的地位以及我們卓越團隊的努力，我們能夠從實力地位應對這些挑戰。

Taking a look now at our first quarter results. First quarter net sales were $15.7 million, down from $18.7 million last year. A portion of the decrease in sales can be attributed to the prior year's inclusion of $631,000 in sales associated with Carousel Designs, which ceased operations in May 2021.

現在看看我們的第一季度業績。第一季度淨銷售額為 1570 萬美元，低於去年的 1870 萬美元。銷售額下降的一部分可歸因於上一年與 Carousel Designs 相關的銷售額為 631,000 美元，該公司於 2021 年 5 月停止運營。

Multiple forces in the marketplace have contributed to the remainder of the sales decline. However, it's important to note that we have maintained shelf space at our retailers. Our partnerships with them remain strong, and we're working closely together with them to navigate the current market challenges. After spending several quarters working to build up their inventories due to supply chain constraints and high consumer demand, we're not surprised that many retailers are now in an over inventory situation and have begun to reduce their purchases.

市場中的多種力量導致了其餘的銷售下降。但是，重要的是要注意我們在零售商處保留了貨架空間。我們與他們的合作夥伴關係仍然牢固，我們正在與他們密切合作，以應對當前的市場挑戰。由於供應鏈限制和高消費者需求，在花費了幾個季度來建立庫存之後，我們對許多零售商現在處於庫存過剩的情況並開始減少採購併不感到驚訝。

At the same time, consumers have changed their buying behaviors due to inflation concerns. As a result, many consumers are now trading down to lower-priced items, buying fewer items or foregoing some items altogether. Nevertheless, we're working with retailers to ensure that consumer demand will be satisfied at these levels.

與此同時，消費者因通脹擔憂而改變了購買行為。結果，許多消費者現在正在降價購買低價商品，購買更少的商品或完全放棄某些商品。儘管如此，我們正在與零售商合作，以確保在這些水平上滿足消費者的需求。

First quarter net income was $1.4 million or $0.14 per diluted share compared with $2.7 million or $0.27 per diluted share last year. Prior year included an almost $2 million gain of forgiveness of our Paycheck Protection Program loan. It also included an $802,000 net loss related to Carousel Designs.

第一季度淨收入為 140 萬美元或每股攤薄收益 0.14 美元，而去年為 270 萬美元或每股攤薄收益 0.27 美元。上一年包括我們的薪資保護計劃貸款減免近 200 萬美元。它還包括與 Carousel Designs 相關的 802,000 美元淨虧損。

Excluding the impact of the loan forgiveness and Carousel Designs, net income would have been $1.5 million or $0.15 per diluted share for the first quarter of last year. For the current year, we continue to see increased costs throughout the supply chain. However, we are beginning to see those costs somewhat stabilize. We pass along these increased costs to our customers whenever we can. We finished the quarter with $4.1 million in cash and no borrowings on our revolving line of credit.

排除貸款減免和輪播設計的影響，去年第一季度的淨收入為 150 萬美元或每股攤薄收益 0.15 美元。今年，我們繼續看到整個供應鏈的成本增加。然而，我們開始看到這些成本有所穩定。我們會盡可能將這些增加的成本轉嫁給我們的客戶。我們以 410 萬美元的現金結束了本季度，我們的循環信貸額度沒有借款。

Our inventory was $26.4 million at the end of the quarter, which is higher than usual for this time of the year due primarily to the market trends mentioned earlier. The majority of our inventory is current in-line products. We continue to be diligent in managing inventory, and we expect normal levels by the end of the third quarter.

在本季度末，我們的庫存為 2640 萬美元，這主要是由於前面提到的市場趨勢，這比一年中這個時候的往常要高。我們的大部分庫存是當前的在線產品。我們繼續努力管理庫存，我們預計到第三季度末將達到正常水平。

Keeping in mind that this is when we will be going into Chinese New Year, a time when we typically have higher levels of inventory compared with the rest of the year. We also announced that our Board of Directors declared an $0.08 per share cash dividend on the company's common stock that will be paid on October 7, 2022 to shareholders of record at the close of business on September 16, 2022. This represents an annualized yield of 4.8% based on yesterday's closing price. We're very pleased that our balance sheet remains strong, and we can continue to reward our stockholders with an attractive dividend.

請記住，這是我們即將進入農曆新年的時候，與今年其他時間相比，我們通常會有更高的庫存水平。我們還宣布，我們的董事會宣布對公司普通股派發每股 0.08 美元的現金股息，該股息將於 2022 年 10 月 7 日支付給在 2022 年 9 月 16 日收市時登記在冊的股東。這意味著年化收益率為以昨日收盤價計算4.8%。我們很高興我們的資產負債表保持強勁，我們可以繼續以有吸引力的股息獎勵我們的股東。

Now I'm going to turn the call over to Craig.

現在我要把電話轉給克雷格。

Thanks, Olivia. I'm only going to give financial highlights. For more detailed analysis, please refer to the company's 10-Q filed with the SEC this morning. Net sales were $15.7 million for the first quarter of fiscal '23 compared with $18.7 million for the first quarter of the prior year, a decrease of $3 million or 16%.

謝謝，奧利維亞。我只會給出財務亮點。如需更詳細的分析，請參閱該公司今天上午向 SEC 提交的 10-Q 文件。 23財年第一季度的淨銷售額為1570萬美元，而去年第一季度為1870萬美元，減少了300萬美元或16%。

The sales of bedding, blankets and accessories decreased by $2.5 million, which includes a decrease of $631,000 due to the closure of Carousel Designs in the first quarter of last year. Sales of bibs, toys and disposable products decreased by $543,000. The decreases in sales were primarily due to lower replenishment orders at a major retailer. Also during the current year period, our customers began to reduce their purchases as their inventories increased, which we believe resulted from customers' excessive inventory purchases during the first quarter of calendar '22 and consumers' response to rising inflation.

床上用品、毯子和配飾的銷售額減少了 250 萬美元，其中包括由於去年第一季度 Carousel Designs 關閉而減少的 631,000 美元。圍兜、玩具和一次性產品的銷售額減少了 543,000 美元。銷售額下降的主要原因是一家主要零售商的補貨訂單減少。同樣在本年度期間，隨著庫存增加，我們的客戶開始減少購買，我們認為這是由於客戶在 22 年日曆第一季度過度購買庫存以及消費者對通脹上升的反應。

Finally, in advance of the expectation that shipments to customers from our Compton warehouse would be suspended during the first days of April 2022 due to our annual inventory count, customers were encouraged to place their orders earlier than they ordinarily would have. And as a result, we estimate that approximately $700,000 of sales were made in the fourth quarter of fiscal year '22 that would have otherwise been made in the first quarter of fiscal year '23.

最後，由於我們的年度庫存盤點，預計我們的康普頓倉庫將在 2022 年 4 月的第一天暫停向客戶發貨，因此我們鼓勵客戶比平時更早下訂單。因此，我們估計 22 財年第四季度的銷售額約為 700,000 美元，否則 23 財年第一季度的銷售額將達到 700,000 美元。

Gross profit increased by $497,000 and increased from 24.9% of net sales in the first quarter of the prior year to 32.8% of net sales for the current quarter. The increase in gross profit includes the effect of the closure of Carousel, which recognized a gross loss of $647,000 in the prior year period and included the sale of inventory below cost and the recognition of charges of $334,000 associated with the settlement of a commitment to a supplier and $265,000 associated with the liquidation of Carousel's remaining inventory upon the closure of the business.

毛利潤增加了 497,000 美元，從去年第一季度淨銷售額的 24.9% 增加到本季度淨銷售額的 32.8%。毛利潤的增加包括 Carousel 關閉的影響，該公司在上一年期間確認了 647,000 美元的毛虧損，並包括以低於成本的價格出售庫存以及確認與結算承諾相關的 334,000 美元的費用供應商和 265,000 美元與 Carousel 在關閉業務後清算剩餘庫存有關。

Also, although the gross profit in the prior year period was impacted by increases in costs across the entire supply chain, we have realized some stabilization in input costs in the current year. Finally, we also expect to benefit in future periods from recent increases in the selling prices of our products. Marketing and administrative expenses increased by $47,000 and increased from 18% of net sales in the first quarter of the prior year to 21.7% of net sales for the current year quarter. The prior year quarter included $410,000 for charges incurred by Carousel. Other items in the prior year quarter include an almost $2 million gain recognized from the forgiveness of our PPP loan.

此外，雖然上年期間的毛利受到整個供應鏈成本增加的影響，但我們在本年度實現了投入成本的一些穩定。最後，我們還希望在未來一段時間內受益於我們產品銷售價格的近期上漲。營銷和管理費用增加了 47,000 美元，從去年第一季度淨銷售額的 18% 增加到本年度季度淨銷售額的 21.7%。上一季度包括 Carousel 產生的 410,000 美元費用。上一季度的其他項目包括從我們的 PPP 貸款減免中確認的近 200 萬美元收益。

The provision for income taxes is based upon an annual effective tax rate on continuing operations, which was 23.5% in the current year quarter and 19.2% in the prior year. A gain on extinguishment of debt in the prior year quarter was excluded from taxable income, the effect of which lowered the effective tax rate for the prior year quarter by approximately 4 percentage points. During both the current and prior year quarters, the company recorded discrete reserves for unrecognized tax liabilities as well as adjustments to income tax expense associated with excess tax benefits or shortfalls arising from the vesting of nonvested stock and the exercise of stock options.

所得稅撥備基於持續經營的年度有效稅率，本季度為 23.5%，上年為 19.2%。上一季度的債務清償收益不計入應稅收入，其影響使上一季度的有效稅率降低了約 4 個百分點。在本年度和上一年度的兩個季度，該公司記錄了未確認的稅收負債的離散準備金，以及與超額稅收優惠相關的所得稅費用調整，或因授予未歸屬股票和行使股票期權而產生的短缺。

The effective tax rate from continuing operations, combined with the effect of the discrete income tax items, resulted in an overall provision for income taxes of 24.5% for the current year quarter and 18.6% for the prior year quarter. Net income for the first quarter of fiscal '23 was $1.4 million or $0.14 per diluted share compared to net income of $2.7 million or $0.27 per diluted share for the prior year quarter. And as Olivia mentioned, the prior year quarter includes the gain from the loan forgiveness and the losses of Carousel.

持續經營的有效稅率，加上離散所得稅項目的影響，導致本年度季度的所得稅總撥備為 24.5%，上一季度為 18.6%。 23財年第一季度的淨收入為140萬美元或稀釋後每股0.14美元，而上一季度的淨收入為270萬美元或稀釋後每股0.27美元。正如 Olivia 所提到的，上一季度包括貸款減免帶來的收益和 Carousel 的損失。

And now, I'll turn the call back to Olivia.

現在，我將把電話轉回給 Olivia。

Thank you, Craig. While we're not satisfied with the way fiscal 2023 has started, our performance continues to reflect the strength of our partnerships, our products and our business. Our retailers continue to want to work with us, and we've maintained ourself shelf space. And although inflationary pressures have made consumers more price sensitive, the breadth of our portfolio ensures that we will be able to continue offering products in the price ranges that consumers are looking for.

謝謝你，克雷格。雖然我們對 2023 財年的啟動方式並不滿意，但我們的業績繼續反映了我們的合作夥伴關係、產品和業務的實力。我們的零售商繼續希望與我們合作，並且我們保持了自己的貨架空間。儘管通脹壓力使消費者對價格更加敏感，但我們產品組合的廣度確保我們能夠繼續提供消費者正在尋找的價格範圍內的產品。

We also remain excited about our opportunities for profitable growth, and we're moving forward with our strategic plan to strengthen our company's position and generate long-term value for our stockholders.

我們也對我們的盈利增長機會感到興奮，我們正在推進我們的戰略計劃，以加強我們公司的地位並為我們的股東創造長期價值。

MJ will now open up the line for questions.

MJ現在將開放提問。

(Operator Instructions) Our first question today comes from Tony Chiarenza with Key Equity Investors.

（操作員說明）我們今天的第一個問題來自於 Key Equity Investors 的 Tony Chiarenza。

My first question is the obvious one is the inventory. You mentioned it in your presentation that it's higher, obviously, than it usually is this time of the year. But you -- Can you expand on that a little bit and give us a sense of how marketable it is? Is it inventory of more expensive items that are going to be more difficult to pass through the chain or what concerns do you have about it?

我的第一個問題很明顯是庫存。您在演示文稿中提到它顯然比一年中的這個時候要高。但是你——你能稍微擴展一下，讓我們了解它的市場價值嗎？是更昂貴的物品庫存將更難通過鏈條還是您對此有什麼擔憂？

I don't really have any concerns about it. It's all marketable inventory. The bigger problem is, is that most of our customers became over inventoried. And so they're just holding back on their purchases for the time being, and we should be able to ship it as soon as their inventories clear up.

我真的對此沒有任何顧慮。都是有銷路的存貨。更大的問題是，我們的大多數客戶庫存過多。所以他們只是暫時停止購買，我們應該能夠在他們的庫存清理後立即發貨。

Which should take a couple of quarters? Or can you actually do something in the second quarter? Or ...

哪個應該需要幾個季度？或者你真的可以在第二季度做點什麼嗎？或者 ...

It depends on the SKU. Some SKUs have already cleared up and we're starting to ship some and some other SKUs may be more over-inventoried than others. It also depends on the retailer. It's been very well documented in the press, I guess, with Walmart, Amazon, at Target, et cetera, as to when they expect to be able to run through their inventories. So it just depends. It's kind of all over the board.

這取決於 SKU。一些 SKU 已經清理完畢，我們開始運送一些 SKU，而其他一些 SKU 可能比其他 SKU 庫存過多。這也取決於零售商。我猜，沃爾瑪、亞馬遜、Target 等媒體已經很好地記錄了他們希望何時能夠清空他們的庫存。所以這取決於。這有點像全盤。

Okay. But you are comfortable that it is marketable inventory, and that's not something that you're going to have to take a write-down at this point. Obviously, things may change.

好的。但是你對它是適銷對路的庫存感到很舒服，而且這不是你現在必須減記的東西。顯然，事情可能會發生變化。

Obviously, things can change. But right now, I'm not worried about it. I don't like the over inventory, but I do think that we'll run through it in the next few quarters.

顯然，事情可能會發生變化。但現在，我並不擔心。我不喜歡庫存過剩，但我確實認為我們會在接下來的幾個季度中解決這個問題。

Second question, how would you describe current market conditions? Are they still continue to be like they were in the first quarter or would you consider things have stabilized a bit in terms of the customer demand?

第二個問題，您如何描述當前的市場狀況？他們是否仍然像第一季度一樣，還是您認為就客戶需求而言情況已經穩定了一些？

I think as long as the economy is where it is today that it's probably going to continue for a period of time as far as sell-through at the retailers. The good news is, is that infant products continue to be needed as long as people are having babies. So we may not see the same results as other people are seeing when it's completely discretionary item. If you're going to have a baby, you've still got to buy the items.

我認為只要經濟處於今天的水平，就零售商的銷售情況而言，它可能會持續一段時間。好消息是，只要人們生孩子，就會繼續需要嬰兒產品。因此，當它完全是可自由支配的項目時，我們可能不會看到與其他人看到的相同的結果。如果您要生孩子，您仍然必須購買這些物品。

Right, right. It's not an option. Finally, how would you describe your competitive position? And obviously, things have dropped, but have you maintained what you would consider your market share relative to the competitors at this point?

是的是的。這不是一個選擇。最後，您如何描述您的競爭地位？顯然，情況有所下降，但你是否保持了你認為相對於競爭對手的市場份額？

We have. Our market share remains solid. Our placement at retail remains very strong. We haven't lost any shelf space, and we're working with our retailers to continue to maintain that.

我們有。我們的市場份額依然穩固。我們在零售業的地位仍然非常強勁。我們沒有失去任何貨架空間，我們正在與我們的零售商合作以繼續保持這一點。

Okay. Sounds good. Now at these sales levels, can you continue to be profitable? Or do you need to -- obviously, this quarter, the margins were better because, obviously, some onetime items in the last quarter. But do you expect the current gross margins to continue and be profitable, let's say, at these lower sales level?

好的。聽起來不錯。現在在這些銷售水平上，你能繼續盈利嗎？或者您是否需要 - 顯然，本季度的利潤率更好，因為很明顯，上一季度有一些一次性項目。但是您是否預計當前的毛利率會繼續保持盈利，比如說，在這些較低的銷售水平上？

I won't comment on exactly where we think gross margins will be. Yes, we can remain profitable at these sales levels. Obviously, we have always watched our cost, and we will adjust cost as necessary for -- if this continues to go on.

我不會評論我們認為毛利率的確切位置。是的，我們可以在這些銷售水平上保持盈利。顯然，我們一直在關注我們的成本，如果這種情況繼續下去，我們將根據需要調整成本。

The next question today comes from John Deysher of Pinnacle.

今天的下一個問題來自 Pinnacle 的 John Deysher。

Could we talk a little bit about the gross margin. It's pretty amazing when sales dropped $2.4 million, I mean, excluding Carousel and all that noise. But your gross margin only dropped $100,000. In other words, the gross margin actually went up from 29.3% as you highlighted in the release to 33.1%. And I'm just wondering, to what do you attribute that almost 400 basis point increase in gross margin, really quite exceptional?

我們能否談談毛利率。我的意思是，不包括 Carousel 和所有的噪音，銷售額下降了 240 萬美元，這真是太神奇了。但是你的毛利率只下降了 100,000 美元。換句話說，毛利率實際上從您在新聞稿中強調的 29.3% 上升到 33.1%。我只是想知道，你認為毛利率增加近 400 個基點的原因是什麼，真的非常特別？

We continuously watch our inputs and we adjust our cost as necessary when we see sales either dipping down or going up for that matter. So we're pretty much known historically for always watching our cost. We also did have -- if costs go up, we always pass those costs on to our retailers, but there is a delay. So when costs started going up last year, the increase in prices started several months after that and some of it didn't even start until the fourth quarter or even the first quarter of this year. So a little bit of it is a delay in when we get our price increases from our customers as to when we pay the cost increases to our suppliers.

我們持續關注我們的投入，當我們看到銷售額下降或上升時，我們會根據需要調整成本。因此，我們在歷史上以始終關注我們的成本而聞名。我們也確實有——如果成本上升，我們總是將這些成本轉嫁給我們的零售商，但會有延遲。因此，當去年成本開始上漲時，價格在幾個月後開始上漲，其中一些甚至直到今年第四季度甚至第一季度才開始。因此，有一點是延遲了我們從客戶那裡獲得價格上漲的時間，以及我們何時向供應商支付增加的成本。

Okay. But -- so you increased prices more than your cost increased per quarter?

好的。但是——所以你增加的價格超過了每季度增加的成本？

We try to maintain our profitability. So we look at it on a percentage basis. So if our costs go up, then we're going to raise the cost to the retailer to be able to maintain our margins. It's just there's a delay in the timing.

我們試圖保持我們的盈利能力。因此，我們以百分比為基礎來看待它。因此，如果我們的成本上升，那麼我們將提高零售商的成本以維持我們的利潤。只是時間上有延遲。

I mean you did better than maintain, you actually increased it. So I'm just trying to figure out why that is. Was there any change in business mix or anything like that?

我的意思是你做得比維護好，你實際上增加了它。所以我只是想弄清楚為什麼會這樣。業務組合或類似情況是否有任何變化？

There's always some changes in whether it's the SKU level or the product categories, et cetera. So there's some built-in changes there that are always ongoing that from quarter-to-quarter, we'll have some fluxes in our gross margin. So it definitely wouldn't be the same products sold this year as last year, and there's always some kind of changes there, yes.

無論是 SKU 級別還是產品類別等，總會有一些變化。所以有一些內在的變化總是在持續，從一個季度到另一個季度，我們的毛利率會有一些變化。所以今年肯定不會和去年銷售相同的產品，而且總會有一些變化，是的。

Okay. So maybe some mix and also price increases, okay, good. Could you elaborate on your comment about expanding in the toy category, what exactly are you doing to expand the toy category?

好的。所以也許一些混合和價格上漲，好吧，很好。您能否詳細說明您對擴大玩具類別的評論，您究竟在做什麼來擴大玩具類別？

So that was an acquisition we did in 2017, and it had -- it was a company that had fallen on some hard times. It used to be one of the top players in the marketplace in developmental toys. And company that had owned them had gone through some financial difficulties. And as a result, they lost some placement because they couldn't get inventory in. So we've been working on that pretty steadily since we acquired them over the last 5 years and trying to rebuild some market share. And the growth strategy is really to go after the competitors and try to take their shelf space to build that market back up.

所以這是我們在 2017 年進行的一次收購，而且它確實——這是一家陷入困境的公司。它曾經是益智玩具市場上的佼佼者之一。擁有它們的公司也經歷了一些財務困難。結果，他們失去了一些位置，因為他們無法獲得庫存。所以自從我們在過去 5 年收購他們並試圖重建一些市場份額以來，我們一直在非常穩定地工作。增長戰略實際上是追逐競爭對手，並試圖利用他們的貨架空間來建立這個市場。

Sorry, what was the name of that company you bought in 2017?

抱歉，你在 2017 年收購的那家公司叫什麼名字？

Sassy Baby products.

野蠻嬰兒產品。

Yes, Sassy. Okay. And how do you go about stealing market share from competitors?

是的，薩西。好的。您如何從競爭對手那裡竊取市場份額？

It's all about design and creating the product that the consumer wants.

一切都是關於設計和創造消費者想要的產品。

You don't actually segment out the toy category. It's embedded in the toys, bibs and that kind of (inaudible)

您實際上並沒有細分玩具類別。它嵌入在玩具、圍兜之類的（聽不清）中

It's embedded with the bibs, et cetera. So it was an acquisition at the time our division was called Hamco. And when we acquired the Toy division, we actually merged it with Hamco and changed the name of that company to Sassy.

它嵌入了圍兜等。因此，在我們的部門被稱為 Hamco 時，這是一次收購。當我們收購玩具部門時，我們實際上將其與 Hamco 合併，並將該公司的名稱更改為 Sassy。

Okay. Got it. And finally, also increasing direct sales to consumers. What percentage of your sales is online this quarter versus a year ago?

好的。知道了。最後，還增加了對消費者的直接銷售。本季度與一年前相比，您在線銷售的百分比是多少？

Let me look that up a second. So this year, about -- it's pretty even between 25% and 30% of our sales are Internet sales. But all of those are sold, we sell those to the retailer and then they sell to the consumer. So we're going to try to take part of those sales and go direct to the consumer.

讓我看一下。所以今年，我們的銷售額中大約有 25% 到 30% 是互聯網銷售。但是所有這些都被出售了，我們將它們出售給零售商，然後它們再出售給消費者。因此，我們將嘗試參與這些銷售並直接面向消費者。

Okay. So it was about the same this quarter as it was a quarter or a year ago?

好的。所以這個季度與一個季度或一年前的情況大致相同嗎？

Very close.

很接近。

25% to 30%. Okay.

25% 到 30%。好的。

(Operator Instructions)

（操作員說明）

Okay. MJ, it looks like we don't have any more questions, so we'll just wrap it up. Thank you to everyone for your continued support and interest in our company. And a special thanks to all of our employees, suppliers and customers. We look forward to talking with you again in mid-November when we release our second quarter results. Thank you.

好的。 MJ，看起來我們沒有更多問題了，所以我們將其結束。感謝大家一直以來對我們公司的支持和關注。並特別感謝我們所有的員工、供應商和客戶。我們期待在 11 月中旬發布第二季度業績時再次與您交談。謝謝你。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。