For the second quarter of the fiscal year 2021, which ended September 27, 2020, Crown Crafts, Inc. (NASDAQ-CM: CRWS) today announced results.
For the second quarter of fiscal 2021, net income was $2.5 million, or $0.24 per diluted share, from net sales of $21.7 million, compared with a net income of $1.8 million, or $0.18 per diluted share, for the second period of fiscal 2020, for net sales of $18.6 million. Gross profit for the current quarter of the year increased to 32.8% of net sales, up from 31.6% of net sales year over year. The quarter’s net sales of $2.5 million were the strongest second quarter since 2002, except the impact of the debt refinancing benefit in the second quarter of fiscal 2007 * and the best of any quarter from over a decade.
Owing to the reversal of a portion of reserves for unreported tax liabilities and the corresponding interest and penalties previously recorded, the prior year’s net income was affected significantly by $292,000, or $0.03 per diluted share. For the six-month period, gross profit was 32.0% of net sales, up from 30.2% of net sales in the prior-year period.
Crown Crafts, Inc. (NASDAQ-CM: CRWS) also reported that its Board of Directors had approved a particular cash dividend of $0.25 per share, along with a regular cash dividend of $0.08 per share, on the Company’s Series A common stock. On December 31, 2020, all dividends will be distributed to record owners at the close of business on December 11, 2020.
Crown Crafts Chairman, President, and Chief Executive Officer, Mr. E. Randall Chestnut said after the announcement that with increases in net revenue, gross margin, and net income for both the quarter and year-to-date periods, the firm showed strong performance once again. The given results, despite the challenging economic climate, has been driven by increased market demand for the company’s products.