Crown Crafts Inc (CRWS) 2026 Q1 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the Crown Crafts, Inc., conference call. (Operator Instructions) Please note, this event is being recorded.

女士們、先生們，早安，歡迎參加 Crown Crafts, Inc. 電話會議。（操作員指示）請注意，此事件正在被記錄。

I would now like to turn the conference back over to John McNamara. Please go ahead.

現在我想將會議交還給約翰·麥克納馬拉。請繼續。

Thank you. Good morning, everyone, and thank you again for joining the Crown Crafts' fiscal year 2026 first-quarter conference call. With us on the call this morning are Crown Craft's President and Chief Executive Officer, Olivia Elliott; and Vice President and Chief Financial Officer, Claire Spencer.

謝謝。大家早安，再次感謝大家參加 Crown Crafts 2026 財年第一季電話會議。今天早上與我們一起參加電話會議的有 Crown Craft 總裁兼執行長 Olivia Elliott 和副總裁兼財務長 Claire Spencer。

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.

在今天的電話會議中，公司可能會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。這些聲明受到 Crown Crafts 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。有關公司風險因素和其他不確定因素的更多信息，請參閱公司向美國證券交易委員會提交的文件。

With that, I would now like to turn the call over to President and Chief Executive Officer, Olivia Elliott. Go ahead, Olivia.

現在，我想將電話轉給總裁兼執行長 Olivia Elliott。繼續吧，奧利維亞。

Thank you, John. Good morning, everyone. When we spoke with you at the end of June to discuss our results for fiscal 2025, we identified a few key themes that we expected would have a continuing impact on our financial results. Inflation has been one of those things.

謝謝你，約翰。大家早安。當我們在 6 月底與您討論 2025 財年業績時，我們確定了一些我們預計會對我們的財務表現產生持續影響的關鍵主題。通貨膨脹就是其中之一。

And while the official rate of increase has leveled off, consumers are still feeling the impact of the initial surge, which continues to affect discretionary spending habits. Tariffs, of course, have been a headline concern this quarter. And that concern is compounded by the uncertainty over what their final levels will look like.

儘管官方公佈的成長率已經趨於平穩，但消費者仍然感受到最初激增的影響，這繼續影響著可自由支配的支出習慣。當然，關稅是本季人們關注的焦點。而對於其最終水準的不確定性則加劇了這種擔憂。

However, we also outlined how we are working to navigate these concerns and continue to execute our long-term strategic plan. We recently noted that we expanded our product portfolio with the acquisition of Baby Boom and continue to drive growth with these new offerings. We've noted our solid relationships with suppliers, customers, and licensors.

然而，我們也概述了我們如何努力解決這些問題並繼續執行我們的長期策略計劃。我們最近指出，透過收購 Baby Boom，我們擴大了產品組合，並繼續透過這些新產品推動成長。我們注意到我們與供應商、客戶和授權人建立了牢固的關係。

And to that end, we're delighted to announce that we have extended our license agreement with Disney. The Disney license now extends our reach to sales in Canada and will include diaper bags to our list of licensed products.

為此，我們很高興地宣布，我們已經延長了與迪士尼的授權協議。迪士尼授權現已將我們的銷售範圍擴大到加拿大，並將尿布袋納入我們的授權產品清單。

Looking more broadly at sales, we are very encouraged by the numbers we've seen for sales in July and are cautiously optimistic about the rest of the fiscal year. And through all this, our balance sheet and cash flow remains solid. So while the overall environment remains challenging, we believe that we are well positioned to respond to circumstances as they arise and continue to grow the business and create value for our shareholders.

從更廣泛的銷售情況來看，我們對 7 月的銷售數據感到非常鼓舞，並對本財年剩餘時間的銷售持謹慎樂觀的態度。儘管如此，我們的資產負債表和現金流依然穩健。因此，儘管整體環境仍然充滿挑戰，但我們相信我們已準備好應對各種情況，繼續發展業務並為股東創造價值。

With that, I'll now turn the call over to our recently named Chief Financial Officer, Claire Spencer, who will walk you through some of the financial details.

現在，我將把電話轉給我們最近任命的財務長克萊爾‧史賓塞 (Claire Spencer)，她將向您介紹一些財務細節。

Thank you, Olivia. I'm delighted to be here. I will begin with an overview of the quarter results and then provide some color.

謝謝你，奧莉維亞。我很高興來到這裡。我將首先概述本季的業績，然後再提供一些細節。

First-quarter net sales were $15.5 million, a 4.5% decrease compared to the first quarter of fiscal year 2025. The decrease was driven by a decline in the sales of bibs, toys, and disposable products, partially offset by an increase in the sales of bedding and diaper bags related to the Baby Boom acquisition.

第一季淨銷售額為 1,550 萬美元，與 2025 財年第一季相比下降 4.5%。銷售額下降的原因是圍兜、玩具和一次性用品的銷售額下降，但與收購 Baby Boom 相關的床上用品和尿布袋的銷售成長部分抵消了這一下降。

The decrease in net sales was largely a result of inventory shortages resulting from the company's strategy to minimize the impact of extremely high tariffs in effect during the first half of the quarter. Gross profit decreased by $448,000 from the prior-year three-month period ended June 30, 2024.

淨銷售額的下降主要是由於公司為盡量減少本季上半段實施的極高關稅的影響而採取的策略導致庫存短缺。毛利較截至 2024 年 6 月 30 日的去年同期減少了 448,000 美元。

As a percentage of net sales, there was a decrease of 1.8%, from 24.5% in prior year to 22.7% of net sales for the three-month period ended June 29, 2025. The decrease is primarily a result of increased tariff costs associated with products imported from China.

佔淨銷售額的百分比為 1.8%，從上年的 24.5% 下降至截至 2025 年 6 月 29 日的三個月的淨銷售額的 22.7%。下降的主要原因是從中國進口的產品關稅成本增加。

Marketing and administrative expenses increased by $454,000 from 26.3% of net sales for the three-month period ended June 30, 2024, to 30.5% of net sales for the three-month period ended June 29, 2025. The current year includes increased costs associated with the acquisition of Baby Boom as well as increased advertising costs.

行銷和管理費用增加了 454,000 美元，從截至 2024 年 6 月 30 日的三個月期間淨銷售額的 26.3% 增加到截至 2025 年 6 月 29 日的三個月期間淨銷售額的 30.5%。本年度包括與收購 Baby Boom 相關的成本增加以及廣告成本增加。

GAAP net loss for the first quarter was $1.1 million or a $0.10 loss per diluted share, which was driven primarily by the impact of increased tariffs and the decline in sales related to inventory shortages that were a result of our tariff management approach.

第一季 GAAP 淨虧損為 110 萬美元，即每股攤薄虧損 0.10 美元，主要原因是關稅上調的影響以及因我們的關稅管理方法導致的庫存短缺相關的銷售額下降。

Turning now to our balance sheet, as of the end of the first quarter, cash and cash equivalents totaled $227,000 compared to $521,000 at the end of fiscal 2025. Inventories were $31.6 million, an increase of 13.6% compared to $27.8 million at the end of last fiscal year. The inventory balance is in line with the first quarter of last year.

現在來看我們的資產負債表，截至第一季末，現金和現金等價物總額為 227,000 美元，而 2025 財年末為 521,000 美元。庫存為 3,160 萬美元，與上一財年末的 2,780 萬美元相比增長了 13.6%。庫存餘額與去年第一季持平。

Fiscal year-end is typically our lowest inventory levels, followed by an increase during the first quarter ahead of programs that set at retailers during the second quarter. As of June 29, 2025, the company had $13.9 million in indebtedness, and $12.2 million remains available under our revolving line of credit.

財政年度末通常是我們庫存水準最低的時候，隨後第一季庫存會增加，然後第二季零售商開始實施計劃。截至 2025 年 6 月 29 日，該公司負債 1,390 萬美元，我們的循環信用額度下仍有 1,220 萬美元可用。

Finally, we declared an $0.08 per share cash dividend to shareholders, as we continue a long history of returning value to our shareholders.

最後，我們宣布向股東派發每股 0.08 美元的現金股息，延續我們長期以來為股東帶來價值的優良傳統。

Now, I will turn the call back to Olivia for additional commentary.

現在，我將把電話轉回給奧利維亞，請她提供更多評論。

Thank you, Claire. We remain focused on navigating the current environment, which is dominated by the impact of tariffs and expectations for what their levels will be on a longer-term timeframe. We're encouraged by developments such as the renewal and expansion of our license agreements with Disney and by the sales level we saw in the month of July.

謝謝你，克萊爾。我們仍然專注於應對當前環境，該環境主要受關稅的影響以及對長期關稅水準的預期。我們與迪士尼續簽和擴大許可協議等進展以及 7 月份的銷售水平令我們感到鼓舞。

We will continue to explore ways to increase sales and gain market share while managing our financial flexibility. In closing, I would like to thank our shareholders for your support, and we look forward to updating you on our progress in the coming quarters.

我們將繼續探索增加銷售額和獲得市場份額的方法，同時管理我們的財務靈活性。最後，我要感謝股東的支持，我們期待在未來幾季向您通報我們的進展。

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

現在，我想開始回答大家的提問。

(Operator Instructions) Doug Ruth, Lenox Financial Services.

（操作員指示）Doug Ruth，Lenox Financial Services。

Olivia and Claire, I want to offer my congratulations. I think you did a wonderful job with the first quarter. You kept the operations stable during a large period of uncertainty. So I'm thankful as a shareholder for what you've done for the investors.

奧莉薇亞和克萊爾，我想向你們表示祝賀。我認為你在第一季的表現非常出色。在充滿不確定性的時期，您保持了營運的穩定。因此，作為股東，我感謝您為投資者所做的一切。

Thank you, Doug.

謝謝你，道格。

I have a few questions. I had read recently that Target is considering doing less direct sourcing. Do you think that that might be able to create an opportunity for Crown Crafts?

我有幾個問題。我最近讀到一篇報道稱，塔吉特正在考慮減少直接採購。您認為這會給 Crown Crafts 創造機會嗎？

We hope so. We've heard rumors like that as well. And so hopefully, that opens up an opportunity to get back some programs that they had taken and started direct sourcing themselves.

我們希望如此。我們也聽過類似的傳聞。因此，希望這能為他們提供一個機會，讓他們收回一些已經拿走的項目，並開始自己直接購買。

Okay. And then do you think that with the 30% tariff, if that is the new normal, do you think that the company could be profitable, maybe not immediately, but somewhere looking ahead?

好的。那麼，您是否認為，如果 30% 的關稅成為新常態，那麼您是否認為該公司能夠盈利，也許不是立即盈利，但可以展望未來？

We're certainly doing everything we can to mitigate the tariffs. And starting in late June, I would say, we started getting our price increases with our customers. And those will work their way through some more in July all the way through to the end of September. And I think at that point in time, yes, we're hopeful that we've done enough to mitigate the cost. I mean, we have to. That's kind of what we're going to have to do.

我們當然會盡一切努力降低關稅。我想說，從六月底開始，我們就開始提高客戶的價格。這些措施將在 7 月持續到 9 月底。我認為在那個時候，是的，我們希望我們已經做了足夠的努力來降低成本。我的意思是，我們必須這麼做。這就是我們必須要做的。

Yes. Very good. And then, is there some opportunities you think to expand the Manhattan Toy's sales overseas?

是的。非常好。那麼，您認為有哪些機會可以擴大曼哈頓玩具的海外銷售呢？

Yes. So as you know, we closed that London office that came with the Manhattan Toy acquisition last year's first quarter. A little of it bled over into the second quarter.

是的。如您所知，我們在去年第一季關閉了因收購曼哈頓玩具而設立的倫敦辦公室。其中一小部分延續到了第二季。

The Manhattan Toy sales were sold direct to the retailer, so not through a distributor, whereas the Sassy model is through a distributor. And we think that that's a better opportunity to expand the sales. And so now that we've combined both of those brands into one set of distributors. We think that's a big opportunity.

曼哈頓玩具的銷售是直接賣給零售商，因此不透過經銷商，而 Sassy 模式則是透過經銷商。我們認為這是擴大銷售的更好機會。現在我們已將這兩個品牌合併為一組經銷商。我們認為這是一個巨大的機會。

Okay. Then a completely different question. An associate of mine told me that they were watching Ms. Rachel on Netflix and that the Sassy stack of circles was featured in an episode. I know you had promoted the Ms. Rachel doll.

好的。那麼這是一個完全不同的問題。我的一位同事告訴我，他們正在 Netflix 上觀看《Rachel 女士》，其中一集出現了 Sassy 的圓圈堆。我知道你曾經推廣過 Rachel 女士娃娃。

Would you be doing something -- would the company be doing something like that, promoting the stack of circles and sharing that news?

你會做些什麼嗎——公司會做類似的事情，推廣圈子堆疊並分享這個消息嗎？

Yes. And so I believe we have. So it's the Love, Stella doll was -- Meghan Markle had put that on her show, and that's one of the Manhattan Toy products.

是的。我相信我們已經做到了。這就是愛，史黛拉娃娃——梅根馬克爾把它放在了她的節目上，這是曼哈頓玩具的產品之一。

So Ms. Rachel is a license with our toddler bedding. It's a NoJo brand. And so I believe -- actually, sorry, Ms. Rachel is actually our NoJo brand, but it was a Sassy product. And so I believe that Sassy should be sharing that on their social media.

因此，Rachel 女士擁有我們幼兒床上用品的許可證。這是 NoJo 品牌。所以我相信——實際上，抱歉，Rachel 女士實際上是我們的 NoJo 品牌，但它是一款 Sassy 產品。所以我相信 Sassy 應該在他們的社交媒體上分享這一點。

Okay. And I know that the company got off to a little bit of a rough start with the Manhattan Toy acquisition, that there were some issues with the management system and then with redesigning some of the dolls. Do you think that the -- has the operations in Manhattan Toy, do you think they've stabilized at this point?

好的。我知道公司在收購曼哈頓玩具公司時遇到了一些困難，管理系統出現了一些問題，後來又重新設計了一些玩偶。您認為曼哈頓玩具公司的營運目前是否已經穩定下來了？

Yes. We do believe that it has stabilized. We've gone through several different product lines, starting with the infant toys. We redesigned those. And those are some of what we placed into Walmart, very few products and in not all the stores. It's kind of the better stores.

是的。我們確實相信它已經穩定下來。從嬰兒玩具開始，我們已經推出了幾條不同的產品線。我們重新設計了它們。這些就是我們在沃爾瑪銷售的一些產品，數量很少，而且並不是所有商店都有銷售。這是比較好的商店。

And then we started working on the Stella dolls. And so those have now been released, and we're currently working on plush and maybe some more expansions on the doll. So I do believe that it has stabilized, and hopefully, we'll see that turning in the sales going up very soon.

然後我們開始製作 Stella 娃娃。現在這些都已經發布了，我們目前正在製作毛絨玩具，也許還會對娃娃進行一些擴展。所以我確實相信它已經穩定下來，希望我們很快就會看到銷售額上升。

That sounds positive. And then how about the -- I know that there's a new LEGOLAND in Shanghai. Is there any -- are you -- is the company receiving any feedback on how the plush figures are selling?

這聽起來很正面。那麼——我知道上海有一個新的樂高樂園。有沒有——您——公司是否收到過關於毛絨玩具銷售情況的任何反饋？

So we sold in the initial set for the park opening, and we did get a reorder. So I think that it was bigger than what we expected. And so that seems like it's a very good sign.

因此，我們在公園開業時就售出了首批產品，並且確實獲得了重新訂購。所以我認為它比我們預期的要大。這似乎是一個非常好的跡象。

That's great. And my last question, we had talked -- you just mentioned about the dolls. And I know we had talked previously that there was the Stella doll. Then there's a Wee Baby Stella, and then there's a new Love doll. Is there any commentary on how the Stella dolls are selling now with the redesign?

那太棒了。我的最後一個問題，我們已經討論過了——您剛才提到了娃娃。我知道我們之前討論過有關 Stella 娃娃的事。然後是 Wee Baby Stella，然後是新的 Love 娃娃。有沒有關於重新設計後的 Stella 娃娃的銷售情況的評論？

I think that they're doing well. Obviously, with the tariff situation -- and sales were impacted all across all the lines because we stopped bringing goods in kind of at the end of the fourth quarter of last year through mid-May. And so all of the lines have been impacted by that. But yes, I mean, I think it's been well received at the shows that we have presented them at and that they're doing fine.

我認為他們做得很好。顯然，由於關稅情況——所有產品的銷售都受到了影響，因為我們從去年第四季末到五月中旬停止了進口貨物。因此，所有線路都受到了影響。但是是的，我的意思是，我認為它在我們展示的展會上受到了好評，而且表現得很好。

Thank you very much for answering my questions.

非常感謝您回答我的問題。

Thank you.

謝謝。

Josh Peters, [Lindenberg Family Office].

喬許彼得斯，[林登伯格家族辦公室]。

Yes, thank you. Good morning, Olivia. I'd like to add my congratulations as well for navigating this extraordinarily difficult environment as elegantly as you have so far.

是的，謝謝。早上好，奧莉薇亞。我還要向你表示祝賀，祝賀你迄今為止能夠如此優雅地應對這個極其困難的環境。

Very encouraging to hear that you are getting the price increases that are necessary to function as a business and to restore profitability. But I'm also curious about the potential for some pent-up demand. My understanding, broadly speaking, is that retailers have been reluctant to order at higher prices, especially when the tariff rates aren't known.

聽到你們獲得了企業正常運作和恢復盈利能力所必需的價格上漲，我感到非常鼓舞。但我也對一些被壓抑的需求的潛力感到好奇。從廣義上講，我的理解是零售商不願意以更高的價格訂購，尤其是在不知道關稅稅率的情況下。

And they've been depleting their own inventories while waiting for things to start shaking out. Is that something you have any insight into? Are your retailers really depleted on stocks so that they're going to have to catch up and replenish here over, let's say, the next couple of quarters or a year or so?

在等待情況好轉的同時，他們也一直在消耗自己的庫存。您對此有什麼見解嗎？您的零售商的庫存是否真的已經耗盡，以至於他們必須在接下來的幾季或一年左右的時間內趕上並補充庫存？

That's all absolutely true. I mean, we are seeing retailers lower their in-stock levels. One of our major retailers has gone from about 10 weeks of supply on hand to an average of 1 to 2 weeks. And so that definitely impacted the sales. As those SKUs run out though, we're hopeful that we're going to see the order patterns get back to a normal level.

這絕對是真的。我的意思是，我們看到零售商降低了庫存水準。我們的一家主要零售商的庫存供應量已從大約 10 週減少到平均 1 至 2 週。這肯定會影響銷售。隨著這些 SKU 的售完，我們希望看到訂單模式恢復到正常水準。

When you have empty shelves, there's some sales that's going to be a lost sale. But for the most part, there is demand for these products. And so I think that as everything gets back in stock, yes, I think we're hopeful that we're going see normal order patterns. It's so hard to predict when point of sale is off and inventory levels are off, both with us and with our retailers. But we think that what we saw in July is a good sign.

當貨架空著時，一些銷售就會損失。但大多數情況下，這些產品都有需求。因此我認為，隨著所有商品恢復庫存，是的，我認為我們希望看到正常的訂單模式。無論對於我們還是我們的零售商來說，都很難預測銷售點何時關閉以及庫存水準何時關閉。但我們認為七月​​看到的情況是個好兆頭。

Okay. And then as a quick follow-up, execution-wise, to that, are your order patterns also responding in kind, so that you can source the product and have it ready for when those reorder -- restock orders come in?

好的。然後，作為快速的後續行動，從執行角度來看，您的訂單模式是否也做出了相應的反應，以便您可以採購產品並在重新訂購 - 補貨訂單到來時做好準備？

Yes, we believe so. So I mean, we use forecasts for models, both from the retailers as well as from our history. And then, we have to kind of go in and say, okay, what are the abnormal patterns that we've had historically so that we can make sure we have the right amount of inventory? Because if our retailers are only keeping one to two weeks of in-stock, then that means we have to have it in our stock to be able to fulfill the demand.

是的，我們相信如此。所以我的意思是，我們使用模型預測，既來自零售商，也來自我們的歷史。然後，我們必須深入研究，好吧，我們歷史上遇到的異常模式是什麼，以便我們可以確保我們有適量的庫存？因為如果我們的零售商只保留一到兩週的庫存，那麼這意味著我們必須有庫存才能滿足需求。

Okay. And then that's very helpful and quite promising. Just want to add one final question about the dividend, and I know it's always at the Board's discretion.

好的。這非常有幫助並且很有前景。我只想補充一個關於股息的最後一個問題，我知道這始終由董事會自行決定。

But what kind of circumstances do you think that you would need to see to feel like a dividend reduction or [omission] would be necessary? Because I almost feel like at this point, if the dividend has survived this kind of category-five storm, that might portray an awful lot of confidence in the company's ability to generate at least that amount of cash going forward. So what would be the trigger to actually have to revisit the dividend rate?

但是您認為需要看到什麼樣的情況才會覺得有必要減少或[取消]股息？因為我幾乎覺得，在這一點上，如果股息能夠經受住這種五級風暴的考驗，這可能表明人們對公司未來至少產生那麼多現金的能力充滿信心。那麼，什麼因素會促使我們真正重新檢視股利率呢？

That's a question I'm going to have to tell you I don't think that I will answer. I think the best answer I can give you is that the Board and management remain confident that with the company's cash flow and balance sheet, and at this point in time, we're not concerned.

我必須告訴你，我認為我不會回答這個問題。我認為我能給你的最好答案是，董事會和管理層仍然對公司的現金流量和資產負債表充滿信心，目前我們並不擔心。

All right. Well, that is helpful perspective. Thank you very much.

好的。嗯，這是一個很有幫助的觀點。非常感謝。

Thank you.

謝謝。

This concludes our question-and-answer session. I would now like to turn the conference back over to Olivia Elliott for closing remarks.

我們的問答環節到此結束。現在，我想將會議交還給奧利維亞·埃利奧特 (Olivia Elliott) 做閉幕發言。

Thank you. We thank all of you for joining us today and for your support. And we look forward to talking again in mid-November when we release our second-quarter earnings. Thank you, all.

謝謝。我們感謝大家今天的參與與支持。我們期待在 11 月中旬發布第二季度收益時再次進行交談。謝謝大家。

Ladies and gentlemen, the conference has now concluded. Thank you for attending today's presentation. You may now disconnect. Goodbye.

女士們、先生們，會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。再見。