Crown Crafts Inc (CRWS) 2025 Q3 法說會逐字稿

Good day everyone and welcome to the Crown Crafts Incorporated Third quarter fiscal 2025 conference call.

大家好，歡迎參加 Crown Crafts Incorporated 2025 財年第三季電話會議。

(Operator Instructions)

（操作員指令）

At this time, I'd like to turn the conference call over to John Beisler with Three Part Advisors, the company's investor relations firm. Please go ahead.

現在，我想將電話會議轉給公司投資者關係公司 Three Part Advisors 的 John Beisler。請繼續。

Thank you, Jamie and good morning, everyone. We appreciate you joining us for the Crown Craft's third quarter fiscal 2025 conference call.

謝謝你，傑米，大家早安。感謝您參加 Crown Craft 2025 財年第三季電話會議。

Joining me on the call this morning are Crown Craft's President and CEO Olivia Elliott and the company's CFO Craig Demarest.

今天早上與我一起參加電話會議的還有 Crown Craft 總裁兼執行長 Olivia Elliott 和公司財務長 Craig Demarest。

Earlier today, Crown craft thought its form 10-Q and issued a press release regarding their third quarter fiscal 2025 financial results.

今天早些時候，Crown craft 審議了其 10-Q 表格並發布了一份關於其 2025 財年第三季財務業績的新聞稿。

Copy of this release is available on the company's website crowncraft.com.

本新聞稿的副本可在該公司網站 crowncraft.com 上取得。

During today's call, the company will make certain forward-looking statements, and actual results may differ materially from those expressed or implied.

在今天的電話會議中，公司將做出某些前瞻性陳述，實際結果可能與明示或暗示的結果有重大差異。

These statements are subject to risk 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.

這些聲明受到 Crowncraft 無法控制的風險和不確定性的影響，而公司沒有義務更新這些聲明。有關該公司的風險因素和其他不確定因素的更多信息，請參閱該公司向美國證券交易委員會提交的文件。

Finally, I would like to remind you today's call is being recorded and a replay will be available through the company's investor relations page.

最後，我想提醒您，今天的電話會議正在錄音，您可以透過公司的投資者關係頁面進行重播。

Now I'd like to turn the call over to the President and CEO Olivia Elliott.

現在我想將電話轉給總裁兼執行長奧利維亞·埃利奧特。

Thank you, John. Good morning, everyone, and thank you for joining today's call. Our Third quarter results reflect our ability to generate cash flow and profitability during this challenging period of economic uncertainty.

謝謝你，約翰。大家早安，感謝大家參加今天的電話會議。我們的第三季業績反映了我們在這段充滿經濟不確定性的時期創造現金流和獲利的能力。

In spite of the headwinds, we have continued to face this fiscal year, our team has remained focused on delivering strong operating cash flow and proactively managing our controllable expenses. We also continue to refresh some of our categories and develop new products so that we are well positioned to capitalize on future growth when consumers are ready to spend more on discretionary items.

儘管本財年我們仍面臨諸多阻力，但我們的團隊仍專注於實現強勁的營運現金流量並積極管理可控費用。我們也將繼續更新一些產品類別並開發新產品，以便當消費者準備在非必需品上花費更多時，我們能夠充分利用未來的成長。

During the quarter, we completed the integration of our most recent acquisition, Baby Boom, which we are excited to record added $3.8 million in sales this quarter. We remain optimistic about the future of these product categories, including diaper bags, which are a new category for us.

在本季度，我們完成了最近收購的 Baby Boom 公司的整合，我們很高興看到該公司本季的銷售額增加了 380 萬美元。我們對這些產品類別的未來仍然持樂觀態度，其中包括尿布袋，這對我們來說是一個新類別。

With that, I'd like to turn it over to Craig to cover the financials in more detail that I will follow up with additional comments before taking questions.

說到這裡，我想把時間交給 Craig，讓他更詳細地介紹財務狀況，然後我會在回答問題之前提出更多的評論。

Thank you, Olivia. Good morning, everyone.

謝謝你，奧莉維亞。大家早安。

That sales for the third quarter of fiscal '25 were $23.3 million compared to $23.8 million in the prior year quarter.

25 財年第三季的銷售額為 2,330 萬美元，而去年同期的銷售額為 2,380 萬美元。

The decrease is primarily attributable to lower online toy sales and the loss in November of '23 of a bid program at a major retailer. This was partially offset by the addition of the $3.8 million in net sales related to Baby Boom, which we acquired in the second quarter of this fiscal year.

下降主要歸因於網路玩具銷售下降，以及 23 年 11 月一家大型零售商的競標計畫失敗。這部分被我們在本財年第二季收購的 Baby Boom 相關的 380 萬美元淨銷售額所抵銷。

Gross profit for the quarter was 26.1% compared to 27% in the third quarter of fiscal '24. The margin decrease can be attributed to slight changes in product mix together with higher lease costs for our warehouse in California.

本季毛利為 26.1%，而 24 財年第三季為 27%。利潤率下降可歸因於產品結構的輕微變化以及我們位於加州的倉庫的租賃成本上升。

We continue to evaluate our footprint and look to reduce our warehousing costs through strategic consolidation in fiscal '26.

我們將繼續評估我們的足跡，並希望透過 26 財年的策略整合來降低我們的倉儲成本。

Our third quarter marketing and administrative expenses were $4.4 million compared to $4.1 million in the prior year quarter. The increase is primarily related to expenses associated with the purchase of Baby Boom.

我們第三季的行銷和管理費用為 440 萬美元，而去年同期為 410 萬美元。成長的主要原因是與購買 Baby Boom 相關的費用。

Including $186,000 in acquisition related costs. Interest expense for the quarter increased $183,000 from the prior year quarter due to the higher borrowings related to the Baby Boom acquisition.

其中包括186,000美元的收購相關費用。由於收購 Baby Boom 相關的借款增加，本季的利息支出較去年同期增加了 183,000 美元。

Net income for the quarter was $893,000 or $0.09 per diluted share compared to net income of $1.7 million or $0.17 per diluted share in the prior year quarter.

本季淨收入為 893,000 美元，即每股攤薄收益 0.09 美元，而去年同期淨收入為 170 萬美元，即每股攤薄收益 0.17 美元。

Turning now to our balance sheet, we remain in a strong financial position as cash in cash equivalents at the end of the third quarter. We're $1.1 million compared to $829,000 at the end of fiscal '24.

現在來看看我們的資產負債表，截至第三季末，我們的現金等價物仍保持強勁的財務狀況。我們的利潤為 110 萬美元，而 24 財年末為 829,000 美元。

Borrowings under our credit facility at the end of the quarter were $20.9 million compared to $8.1 million.

本季末，我們的信貸額度下的借款為 2,090 萬美元，而之前為 810 萬美元。

At the end of fiscal '24, reflecting amounts borrowed in the Second quarter to fund the Baby Boom acquisition.

截至 24 財年末，反映了第二季收購 Baby Boom 而藉入的金額。

Year-to-date through the end of the third quarter, cash flow from operations was $7 million compared to $4.1 million in the same period last year. We expect to use our cash flow to repay our borrowings. However, as always, our debt balance may fluctuate from quarter to quarter due to the timing of inventory purchases and other working capital needs.

截至第三季末，年初至今的營運現金流為 700 萬美元，去年同期為 410 萬美元。我們期望利用現金流償還借款。然而，與往常一樣，由於庫存購買的時間和其他營運資金需求，我們的債務餘額可能每季都會波動。

Our inventory balance has declined from $34.9 million in December '23 to $32.4 million in December '24, even with the inventory added in the Baby Boom acquisition.

即使收購嬰兒潮公司時增加了庫存，我們的庫存餘額也從 23 年 12 月的 3,490 萬美元下降到 24 年 12 月的 3,240 萬美元。

Finally, we paid our regular quarterly dividend of $0.08 per share and declared our next dividend, which will be paid in April.

最後，我們支付了每股 0.08 美元的常規季度股息，並宣布了下一次股息，將於 4 月支付。

Now I'll turn the call back over to Olivia for additional comments.

現在我將把電話轉回給奧利維亞以徵求進一步的意見。

Thank you, Craig. Looking ahead, our focus is on growing the top line while maintaining our cost discipline. In addition to refreshing our high-end toy and diaper bag lines acquired over the past couple of years, our product development teams are also focused on new products to complement our current categories.

謝謝你，克雷格。展望未來，我們的重點是增加營業收入，同時維持成本控制。除了更新我們過去幾年收購的高端玩具和尿布袋產品線外，我們的產品開發團隊還致力於開發新產品以補充我們現有的產品類別。

We're monitoring the ongoing updates out of Washington regarding tariffs, particularly as it pertains to announced 10% on Chinese imports, where virtually all of our products are made. As China remains our best sourcing option, we will need to work with our suppliers to absorb the increase and consider price increases.

我們正在關注華盛頓有關關稅的持續更新，特別是有關對中國進口產品徵收 10% 關稅的消息，因為我們幾乎所有的產品都是在中國生產的。由於中國仍然是我們最好的採購選擇，我們需要與供應商合作，吸收成長的成本並考慮提高價格。

We continue to review potential locations to relocate our warehouse. After visiting 3 locations, we've narrowed that down to two and continue to evaluate the financial profiles of each. Overall, we remain well positioned to navigate the current economy while preparing our brands to perform as conditions improve.

我們將繼續審查重新安置倉庫的潛在地點。在訪問了 3 個地點之後，我們將範圍縮小到兩個地點，並繼續評估每個地點的財務狀況。總體而言，我們仍然能夠很好地駕馭當前的經濟形勢，同時也為我們的品牌做好了在經濟狀況改善時表現出色的準備。

Our balance sheet is strong and we are able to effectively manage our borrowings and continue to pay our dividends through operating cash flow, which stands as a key component in our strategy to deliver long term value to our shareholders.

我們的資產負債表強勁，我們能夠有效地管理我們的借款，並繼續透過經營現金流支付股息，這是我們為股東提供長期價值的策略的關鍵組成部分。

With that, I'd like to open up the line for questions, Jamie.

現在，我想開始回答大家的提問，傑米。

Ladies and gentlemen, at this time we'll begin the question-and-answer session. (Operator Instructions)

女士們、先生們，現在我們開始問答環節。（操作員指令）

And our first question today comes from Douglas from Lenox Financial Services. Please go ahead with your question.

我們今天的第一個問題來自萊諾克斯金融服務公司的道格拉斯。請繼續提問。

Good morning Olivia and Craig.

早上好，奧利維亞和克雷格。

Thank you for hosting the conference call today.

感謝您主持今天的電話會議。

Could you give us a little more colour and tell us how now that you've got the warehouse possibilities down to two, could you tell us some of the things that you're seeing or some of the things that you're thinking about how you'll ultimately make the decision on what town to locate the warehouse?

您能否給我們更多細節，告訴我們現在您已經將倉庫的選擇範圍縮小到兩個，能否告訴我們您所看到的一些情況或您正在考慮的一些情況，您最終將如何決定在哪個城鎮建立倉庫？

A big part of the Consideration is going to obviously be cost.

顯然，對價的很大一部分將是成本。

That being said, we need to look at lead times, one of our final options is on closer to the west coast and one is closer to the east coast, and while you may save a little bit more in the least cost going to the east coast, the cost to get the goods all the way across the country is going to be higher, it's going to take longer and there's also a bigger impact should freight rates go up on the downside.

話雖如此，我們需要考慮交貨時間，我們的最終選擇之一是靠近西海岸，另一個是靠近東海岸，雖然去東海岸可能會節省一點成本，但將貨物運送到全國各地的成本會更高，需要更長的時間，而且如果運費上漲，影響也會更大。

So, you know we're looking at the whole big picture for the most part, all the warehouses look exactly the same, we're mainly focused on the location and any type of technology that we may want to put into the warehouses can be done at either location.

所以，你知道，我們大部分時間都在看整體情況，所有的倉庫看起來都一模一樣，我們主要關注位置，我們想要放入倉庫的任何類型的技術都可以在任何一個位置完成。

Are you like leading, leaning towards one location over another, or you're totally undecided at this point?

您是處於領先地位，傾向於某個地點而不是另一個地點，還是您現在還完全不確定？

Probably leaning a little bit towards the west Coast, location just from the overall package, but we're still trying to get all of the information together and get the actual quotes for the locations that we were, specifically looking at.

從整體來看，可能稍微傾向於西海岸，但我們仍在嘗試收集所有信息，並獲取我們特別關注的地點的實際報價。

Okay. Now changing, could you give us an update on the diaper bag business and some of the initiatives that you're focused on?

好的。現在換個角度，您能否向我們介紹一下尿布袋業務的最新情況以及您關注的一些舉措？

Sure, so we, we've had some really good meetings with both, some potential new licensors for, diaper bags. It seems to be a category that a lot of people, are interested in. We've also had some good meetings with the retailers, we've done some, what I think are very good designs, some refreshed.

當然，我們與一些潛在的尿布袋新授權人進行了一些非常好的會談。這似乎是很多人感興趣的類別。我們也與零售商進行了一些很好的會議，我們做了一些我認為非常好的設計，有些是更新的。

[Silhouettes], some refreshed looks, I think we've got a great, deck that we've been showing and we're hoping to get some new placement in that, so it won't be until 2026 because most of the lines for 2025 had already been placed by the time we did the acquisition in July. So, I think we've got, a good opportunity coming in the next year or so to pick up some placements.

[輪廓]，一些煥然一新的外觀，我認為我們有一個很棒的平台，我們一直在展示，我們希望在其中獲得一些新的位置，所以要到 2026 年才會實現，因為到 7 月份我們完成收購時，2025 年的大部分線路已經佈置好了。因此，我認為我們在明年左右會有一個很好的機會來獲得一些職位。

Now, you had talked about both potentially both domestic and international. Is that still what you're thinking that there there's opportunities in both places?

現在，您已經談論了國內和國際兩個方面的可能性。您是否仍然認為這兩個地方都存在機會？

Yeah, I think there's opportunities in both places. We're focusing on domestic first because we think that's a bigger opportunity, but yeah, we can do both.

是的，我認為兩個地方都有機會。我們首先專注於國內市場，因為我們認為這是一個更大的機會，但是，是的，我們可以兩者兼顧。

And what's the status of Manhattan toy, how are the holiday sales and anything you can share with and then also the placement through Walmart.

曼哈頓玩具的情況如何，節日銷售情況如何，有什麼可以分享的嗎，還有透過沃爾瑪的銷售情況。

So I'll take the easy first. The placement at Walmart's doing well. We expect to keep that placement in Walmart, at least for another year. We found that out, so, we think that we still think we have opportunities to get more placements, so we think that's going well, you know.

因此我先選擇輕鬆的。沃爾瑪的招募情況很好。我們希望至少再保留沃爾瑪的職位一年。我們發現了這一點，所以，我們認為我們仍然有機會獲得更多的職位，所以我們認為進展順利，你知道。

The holiday sales were disappointing. That's where we saw the biggest decline in sales was at the Manhattan toy brand. We think that most people were trading down to maybe the less expensive lines of toys, it just didn't go as well as it had the year before.

假日銷售情況令人失望。我們發現銷售量下滑最嚴重的是曼哈頓玩具品牌。我們認為，大多數人可能會選擇價格較低的玩具系列，但銷售量不如前一年那麼好。

So, that's where I think our biggest disappointment was for this holiday season. That being said, we continue to develop new products. We think that we've done a really good job of refreshing that. We've had a positive.

所以，我認為這就是這個假期我們最大的失望。話雖如此，我們仍在繼續開發新產品。我們認為我們在更新這一點上做得非常好。我們得到了正面的結果。

I guess the customer itself, the retailers, the specialty stores, etc. They have positive things to say about the new development. So, I think there's still an opportunity there, it just didn't come this holiday season.

我想，顧客本身、零售商、專賣店等都對新的發展持正面的評價。所以，我認為那裡仍有機會，只是這個假期沒有到來。

Okay, and what about working with the distributor overseas for the Manhattan toy, has that been effective for the company?

好的，那麼與曼哈頓玩具的海外經銷商合作怎麼樣，這對公司來說有效嗎？

Yes, and so what we closed the London office and we've gone strictly to a distributor system based in on the international front and yes, our distributors have had, most of them are picking up some of the Manhattan toy sales and so that, that's definitely a a bigger opportunity to continue to grow.

是的，我們關閉了倫敦辦事處，嚴格遵循基於國際前沿的經銷商體系，是的，我們的經銷商大多數都承擔了曼哈頓玩具的部分銷售任務，所以，這絕對是一個繼續成長的更大機會。

Okay. And then what about what's the relationship, what's happening with Legoland at this point?

好的。那麼，兩者之間的關係如何？目前樂高樂園的情況如何？

Legoland continues to grow. They're building new parks. I think that we expect the Shanghai Park to open here in 2025, and so we continue to grow there.

樂高樂園持續發展。他們正在建造新公園。我認為我們預計上海公園將於 2025 年在這裡開放，因此我們將繼續在那裡發展。

Yeah, we were the fourth quarter sales up at Legoland?

是的，樂高樂園第四季的銷售額上升了嗎？

So, a lot of the Legoland parks are closed for the winter. So, you have a couple of the ones in the US I think Florida and California stay open during the winter season, but the rest of them are closed. They, I think they open mainly April to October.

因此，許多樂高樂園在冬季都關閉。所以，我認為美國有幾個佛羅裡達州和加利福尼亞州在冬季保持開放，但其餘的都關閉了。我認為他們主要在四月到十月開放。

Okay, I have a few more questions, but maybe I could let somebody else, ask some questions and I can come back for some more.

好的，我還有幾個問題，但也許我可以讓其他人問一些問題，然後我可以再回來問更多問題。

Okay.

好的。

Your next question comes from [John Dyer] from Pinnacle. Please go ahead with your question.

您的下一個問題來自 Pinnacle 的 [John Dyer]。請繼續提問。

Good morning everyone. I just have a quick question on the real estate. I just want to confirm when the various leases are expiring. I understand the content lease expires in June '28.

大家早安。我只是想問一個關於房地產的問題。我只是想確認各種租約何時到期。我知道內容租賃將於 28 年 6 月到期。

The Minneapolis headquarters expires June '27. And Eden Valley warehouse expires June '26.

明尼阿波利斯總部將於27年6月到期。伊甸谷倉庫將於 26 年 6 月到期。

Are all those, correct?

以上這些都正確嗎？

I believe the Minneapolis is March '27, but yeah, that's close. The Eden Valley and the Compton ones are correct.

我相信明尼阿波利斯會議是在 27 年 3 月，但是，是的，很接近。伊甸谷和康普頓的是正確的。

Okay. (Multiple speakers) (inaudible)

好的。（多位發言者）（聽不清楚）

Okay, so they're all pretty close. I mean, given that Eden Valley is going to expire.

好的，它們都很接近。我的意思是，鑑於伊甸谷即將到期。

In about a year and a quarter or so it sounds like you're going to be making a decision on the new warehouse pretty soon.

大約一年零四分之一左右的時間，聽起來您很快就要對新倉庫做出決定了。

Yes, I think we'll make a decision on the final location pretty soon.

是的，我想我們很快就會決定最終地點。

We'll have to sublease in Compton in the meantime, so we're going to have to get the timing right and if for whatever reason the Eden Valley warehouse expires before we are ready, we'll take some kind of interim step, we're thinking through that process.

同時，我們也必須在康普頓轉租，因此我們必須把握好時機，如果伊甸谷倉庫在我們準備好之前因某種原因到期，我們將採取某種臨時措施，我們正在考慮這個過程。

But it could be that we move those, go ahead and move those goods to the final location but use a 3PL temporarily until the warehouse is ready, so it's kind of a balancing act that we're working through.

但我們可能會移動這些貨物，繼續將這些貨物運送到最終地點，但在倉庫準備好之前暫時使用 3PL，所以這是我們正在努力實現的平衡行為。

Right, I understand. So is it fair to say we might know by your fiscal year end

好的，我明白了。那麼，我們可以在你的財政年度結束時知道嗎？

I think it's possibility.

我認為這是有可能的。

Okay

好的

Okay, yeah, I mean if not June by August, I think you know we'll be able to tell you the final location.

好的，是的，我的意思是如果不是六月而是八月，我想你知道我們可以告訴你最終的地點。

Okay, so mid year and what about the Minneapolis headquarters where what's that transition going to be?

好的，那麼年中的時候，明尼阿波利斯總部的過渡情況如何？

We need to get into a smaller space. It was too big for the personnel that was there on the date of acquisition, certainly too big for what we have now, and so, we were working to try to come up with a solution to downsize, sooner rather than later.

我們需要進入一個更小的空間。對於收購之日的人員來說，這個規模太大了，對於我們現在的規模來說，當然也太大了，因此，我們正在努力尋找一個縮小規模的解決方案，越快越好。

But that didn't really work out, so you know we're stuck there until the lease runs out, but we won't go back into that particular location. We could get a much smaller, less expensive location and quite frankly out of downtown, maybe on the outskirts.

但這並沒有真正奏效，所以你知道我們會被困在那裡直到租約到期，但我們不會回到那個特定的位置。我們可以找一個規模更小、成本更低的地方，坦白說，可以在市中心以外，也許在郊區。

Okay, but you're going to keep it in Minneapolis. You're not going to move everybody to Gonzalez.

好的，但是你要把它留在明尼阿波利斯。你不會把所有人都轉移到岡薩雷斯。

No, we won't move everybody to Gonzalez. It'll be a small office, but we'll need to keep something.

不，我們不會將所有人都轉移到岡薩雷斯。這將是一個小辦公室，但我們需要保留一些東西。

Okay, alright, good, I think that was it thank you for your answers.

好的，好吧，很好，我想就這樣了，謝謝你的回答。

Thank you.

謝謝。

Thank you.

謝謝。

And our next question is a follow up from Douglas from Lenox. Please go ahead with your follow up.

我們的下一個問題是來自萊諾克斯的道格拉斯的後續問題。請繼續跟進。

Okay, you had talked about developing some new toys. Is there any certain toy that you have in development that you're especially excited about?

好的，您談到了開發一些新玩具。您正在開發的玩具中是否有讓您特別興奮的？

Well, on the toy side specifically, I think we're really excited about the new doll line that is actually starting to ship now. We redesigned the Stella program, and we think that it's going to be, a better option for specifically in the specialty store side, and then, mostly on the toy side if you're looking at Manhattan toy, we're really just still refreshing the line.

嗯，具體到玩具方面，我認為我們對現在開始發售的新玩偶系列感到非常興奮。我們重新設計了 Stella 計劃，我們認為，對於專賣店而言，這將是一個更好的選擇；然後，主要是在玩具方面，如果您正在關注曼哈頓玩具，我們實際上仍在更新產品線。

There's only so many new products that you can develop and get into production each year. So, we're still working on just the overall refresh of those products, [sassy] just continues to knock it out of the ballpark and everything we develop is really working out well.

每年能夠開發並投入生產的新產品數量是有限的。所以，我們仍然在致力於這些產品的整體更新，[sassy] 繼續保持出色的表現，我們開發的所有產品都進展順利。

What is it specifically about the Stella doll that is a selling point, do you think?

您認為 Stella 娃娃的具體賣點是什麼？

So, I mean the biggest thing is that there was, there were two sizes of dolls, there was I forget what the second one is, but one of them was smaller than the other one and the price differential was pretty great on it and so everybody stopped buying the bigger doll and started getting the smaller doll.

所以，我的意思是，最大的問題是，有兩種尺寸的娃娃，我忘了第二種是什麼，但其中一個比另一個小，而且價格差異很大，所以每個人都不再購買大娃娃，開始購買小娃娃。

And so, what we've done is we've just refreshed, really the size of the dolls and, we've moved manufacturing facilities and so that we can, hit the price point better.

所以，我們所做的就是更新了娃娃的尺寸，並且轉移了製造設施，這樣我們就可以更好地達到價格水平。

So the the difference in price between the bigger doll and the smaller doll is not as great, so possibly you'll sell more of the bigger dolls.

因此，大娃娃和小娃娃之間的價格差異並不大，所以你可能會賣出更多的大娃娃。

But what happened in that case was the dolls looked the same except for they were two different sizes, so everybody traded down to the smaller size and so we're still going to have two separate dolls, but we're gearing them mainly.

但在那種情況下發生的情況是，除了尺寸不同之外，這些娃娃看起來都一樣，因此每個人都換成了較小尺寸的娃娃，因此我們仍然會有兩個不同的娃娃，但我們主要針對它們進行調整。

One is the baby's first doll and it's more of an infant doll. It doesn't have removable clothes, it doesn't have hair, and then you kind of grow into the next size doll as you become a toddler, so we've differentiated the dolls more.

一個是寶寶的第一個娃娃，它更像一個嬰兒娃娃。它沒有可拆卸的衣服，沒有頭髮，當你成為幼兒時，你就會長成下一個尺寸的娃娃，所以我們對娃娃進行了更多的區分。

Okay.

好的。

All right. Now, I noticed quite a change in the marketing expense, for, in the third quarter. Do you, did you feel like the spend was approximately at the right level now?

好的。現在，我注意到第三季的行銷費用發生了很大變化。您是否覺得現在的支出大致處於適當的水平？

The third quarter this year versus third quarter last year.

今年第三季與去年第三季相比。

Yes, yeah, it looked like the marketing expense was lower if I read that correctly.

是的，是的，如果我沒看錯的話，行銷費用似乎較低。

So, it's actually up a little bit and it's mostly the difference is mostly going to be the continued integration costs for Baby Boom, otherwise marketing expenses were flat.

因此，它實際上有所上漲，而主要的差異主要是嬰兒潮的持續整合成本，否則行銷費用將持平。

I misspoke. I meant the advertising expense. I'm sorry.

我說錯了。我指的是廣告費。對不起。

No, I think we're going to have to spend a little bit more on advertising to drive those online sales.

不，我認為我們必須在廣告上多花一點錢來推動網路銷售。

I think that's probably where we missed the mark the most is, we, when we first acquired Manhattan toy advertising costs were more than the sale and so we pulled back on those that spend and I think we pulled back too far so I think in order to drive higher sales online we're going to have to do some more spin.

我認為這可能是我們最未能實現目標的地方，當我們第一次收購曼哈頓玩具時，廣告成本超過了銷售額，因此我們減少了廣告支出，我認為我們減少的太多了，因此我認為為了提高網上銷售額，我們必須做更多的調整。

Yeah, you explained previously that this was sort of an experiment, and you were so possibly if you, if you would have spent more possibly the Manhattan toy sales might have been higher than they actually were.

是的，您之前解釋過，這是一種實驗，如果您花更多的錢，曼哈頓玩具的銷售額可能會比實際情況更高。

I think it's likely, yes.

是的，我認為很有可能。

Okay.

好的。

And then when you talk about just, the big picture, what should, like on an annual basis, what should the marketing and administrative expense, what should that be as a percent of revenue?

然後，當您談論整體情況時，例如按年度計算，行銷和管理費用應該是多少，佔收入的百分比應該是多少？

That's something we're probably not going to answer because we just don't forecast.

我們可能無法回答這個問題，因為我們無法預測。

Okay.

好的。

How about, when we talk about the one large category, bibs, toys or disposables.

當我們談論一個大類別，圍兜、玩具或一次性用品時，情況如何？

Was most of the decline then in the, well, do you, are you able to provide any kind of additional breakdown of the decline from the three different categories?

那麼，大部分的下降是不是在，嗯，您能從三個不同類別中提供任何額外的下降細目嗎？

So, the decline in bibs toys and disposables was primarily the Manhattan toys. We also had a small part of the decline was going to be the last bit of run out for the loss of the Target bib program that we lost in November '23, and so Q3 of last fiscal year had about half of the quarter had bid sales, whereas this this year we had none for that one customer, but the vast majority of it was the Manhattan toy branding.

因此，圍兜玩具和一次性用品銷售的下降主要是曼哈頓玩具的銷售下降。我們的下滑還有一小部分是由於 23 年 11 月失去 Target 圍兜計劃而造成的最後一點損失，因此上一財年第三季度大約有一半的季度銷售額來自競標，而今年我們對那個客戶的銷售額為零，但絕大多數是曼哈頓玩具品牌。

Okay.

好的。

I think that you folks are doing a terrific job. I like the progression of what's happening with the warehouse.

我認為你們做得非常好。我喜歡倉庫發生的事情的進展。

I really appreciate the care that you're taking for the shareholders, really trying to make the best decision that you can to get the right location for the warehouse, and I'm very grateful for what you're doing there for the shareholders.

我真的很感激您對股東的關心，真的盡力做出最好的決定，為倉庫找到合適的位置，我非常感謝您為股東所做的一切。

Thank you.

謝謝。

Okay, that's the end of my questions. Thank you.

好的，我的問題到此結束。謝謝。

Thanks.

謝謝。

And our next question is another follow up from [John Der] from Pinnacle. Please go ahead with your follow up.

我們的下一個問題是來自 Pinnacle 的 [John Der] 的另一個問題。請繼續跟進。

Good morning. What regarding the tariffs. The 10% increase, I guess. When does that go into effect and I guess What measures are you taking to Either offset that or share it with vendors or what are the options?

早安.關於關稅呢？我猜是增加 10%。該政策什麼時候生效？我猜您會採取什麼措施來抵消這項影響或與供應商分享，或有哪些選擇？

So, it goes into effect pretty much immediately. Actually, our initial conversations with our suppliers out of China, it indicates that we're probably going to be able to roll back prices, our initial first cost purchase prices out of China. Enough to cover the vast majority of it,

因此，它幾乎立即生效。實際上，我們與中國供應商的初步對話表明，我們可能能夠降低價格，也就是我們最初的從中國採購的成本價格。足以覆蓋絕大部分，

So, while you know we may have to raise some prices to our retailers, to a small degree depending on category, depending on supplier, we are hopeful that we can minimize the impact to our customers and to the consumer, and it feels like that's really a likely option based on our initial conversations with suppliers.

因此，雖然您知道我們可能必須向零售商提高一些價格，但根據類別和供應商的不同，漲幅會很小，我們希望能夠將對客戶和消費者的影響降至最低，而且根據我們與供應商的初步對話，感覺這確實是一個可能的選擇。

Okay, good, that's encouraged. When will that go into effect one way or the other, the rollback of the purchase prices?

好的，很好，值得鼓勵。無論如何，降低購買價格的措施何時生效？

Immediately, so I mean we need to have those rollbacks that, pretty much concurrent with the increase in the tariffs. So, there may be some product that was already in either on the ocean or some that was already in production that, we may not be able to roll back that quickly, but oftentimes we do say, look, you've got to lower the price on what's already in production but certainly for any new production.

我的意思是，我們需要立即取消這些措施，幾乎與增加關稅同時進行。因此，對於某些已經在海上運輸或已經在生產的產品，我們可能無法那麼快地恢復，但我們常常會說，看，你必須降低已經生產產品的價格，但對於任何新產品來說肯定是這樣的。

Right, but you have those agreements in writing at this point?

好的，但是您現在有書面協議嗎？

We don't actually have agreements with our suppliers. It's on a PO by PO basis, which makes it much easier to change, as soon as possible.

我們實際上並未與供應商達成協議。它是基於採購訂單的，這使得盡快進行更改變得更加容易。

Okay, and the POs that you submitted. Recently have been OKed by the vendors.

好的，還有您提交的採購訂單。最近已獲得供應商的批准。

Well, we haven't submitted any with the new lower prices, but we can I mean absolutely we can go back and change the prices we've done it before.

嗯，我們還沒有提交任何新的較低價格，但我們可以，我的意思是我們絕對可以回去更改我們以前做過的價格。

Okay alright. Okay, that's fine. It sounds like it's a working process at this point.

好的好的。好的，沒問題。聽起來這就像是一個工作過程。

Yes, absolutely. It's kind of ever changing here for the past couple of weeks.

是的，絕對是如此。過去幾周里，這裡的情況一直在改變。

Right, okay, great, I appreciate it and good luck.

好的，好的，太好了，我很感激，祝你好運。

Thank you.

謝謝。

And ladies and gentlemen, with that we'll be concluding today's question and answer session. At this time, I'd like to turn the floor back over to Olivia Elliott for any closing remarks.

女士們、先生們，今天的問答環節就到此結束。現在，我想將發言權交還給奧莉薇亞艾略特，請她做最後發言。

Thank you, Jamie.

謝謝你，傑米。

Thank you for your continued interest in our company. We look forward to speaking with you again when we report our fourth quarter and fiscal year 2025 results in June.

感謝您對我們公司的持續關注。我們期待在 6 月報告第四季和 2025 財年業績時再次與您交談。

And ladies and gentlemen, with that, we'll conclude today's conference call and presentation. We do thank you for joining. You may not disconnect your lines.

女士們、先生們，今天的電話會議和演講就到此結束。我們非常感謝您的加入。您不能斷開您的線路。