Q4 2025 Crown Crafts Inc Earnings Call

Operator: Good day and welcome to the Crown Crafts, Inc. Fourth Quarter Fiscal Year 2025 conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero.

Good day.

Welcome to the Crown Crafts, Inc, fourth quarter fiscal year, 'twenty 'twenty five conference call.

All participants will be in listen only mode.

Should you need assistance. Please signal conference specialist by pressing the star followed by zero.

Operator: After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad, and to withdraw your question, please press star then two. Please note, today's event is being recorded.

After todays presentation, there will be an opportunity to ask questions.

To ask a question you May press Star then one on your telephone keypad to withdraw your question. Please press Star then two.

Please note today's event is being recorded.

Matt Hodges: I would now like to turn the conference over to Matt Hodges with Investor Relations. Please go ahead.

Speaker Change: I would now like to turn the conference over to Matt Hodges with Investor Relations. Please go ahead.

Matt Hodges: Good morning, everyone, and thank you for joining the Crown Crafts fourth quarter fiscal 2025 conference call. Joining me on the call today are Crown Crafts President and CEO, Olivia Elliott.

Good morning, everyone and thank you for joining the crown crafts fourth quarter and fiscal 'twenty 'twenty conference call.

Speaker Change: Joining me on the call today are crown crafts, President and CEO Olivia Elliott.

Matt Hodges: CFO Craig Demarest, and Vice President Claire Spencer, who will be CFO upon Craig's retirement next week. 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 risk and uncertainties that may be beyond Crown Crafts' control, and the company is under no obligation to update these statements.

Speaker Change: CFO, Craig the merits and Vice President Claire Spencer, who will be CFO upon Craig's retirement next week.

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

Speaker Change: 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.

Matt Hodges: 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.

Speaker Change: 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.

Olivia Elliott: Now I'd like to turn the call over to President and CEO Olivia Elliott. Thank you, Matt. Good morning, everyone.

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

Olivia Elliott: Thank you Matt Good morning, everyone fiscal 2025 turned out to be a transitional year for the company much like 'twenty 'twenty four but for different reasons persistent inflation caused consumers to pull back on discretionary spending throughout the year, resulting in total sales for the fiscal year being slightly below last.

Olivia Elliott: Fiscal 2025 turned out to be a transitional year for the company, much like 2024, but for different reasons. Persistent inflation caused consumers to pull back on discretionary spending throughout the year, resulting in total sales for the fiscal year being slightly below last year. We, along with others who import from China, also experienced a slowdown in sales due to uncertainty around the United States tariff policy.

Olivia Elliott: Yeah.

Olivia Elliott: We along with others, who import from China also experienced a slowdown in sales due to uncertainty around the United States tariff policy.

Olivia Elliott: However, as part of our long-term strategic plan, we continue looking for innovative ways to strengthen our market position. This led us to acquire the assets of Baby Boom Consumer Products, which added diaper bags for our portfolio of products, as well as several popular brand licenses, such as Belui and Misrata. This was our second major acquisition over the last two years as we continue to expand our product offerings to drive future growth, both domestically and internationally.

However, as part of our long term strategic plan, we continue looking for innovative ways to strengthen our market position.

Olivia Elliott: This led us to acquire the assets of baby boom consumer products, which added diaper bags for our portfolio of products as well as several popular brand licenses such as Louis and Ms. Rachel.

Olivia Elliott: This was our second major acquisition over the last two years as we continue to expand our product offerings to drive future growth, both domestically and internationally.

Olivia Elliott: From an operations perspective, we have worked diligently to take out unnecessary costs to maintain acceptable margins and profits. Overall, we remain financially healthy with adequate cash at year-end and total inventories less than last year. Our cash flow for the year was $9.8 million, providing us the ability to pay regular dividends and service debt.

From an operations perspective, we have worked diligently to take out unnecessary cost to maintain acceptable margins and profits.

Olivia Elliott: Overall, we remain financially healthy with adequate cash at year end and total inventories less than last year.

Our cash flow for the year was $9 8 million, providing us the ability to pay regular dividends and service desk.

Claire Spencer: Finally, I would like to introduce the newest member of our team, Claire Spencer. Claire joined Crown Crafts on June 16, and as Matt mentioned, will become CFO on June 30. Thank you, Olivia. I am very excited to join Crown Crafts and have the opportunity to lead the finance and accounting team to support the company's financial and strategic goals and drive shareholder value. Welcome, Claire. We're excited to have you join our team.

Olivia Elliott: Finally, I would like to introduce the newest member of our team player Spencer Clare joined Crown Crafts on June 16, and as Matt mentioned will become CFO on June 30th.

Spencer Clare: Thank you Olivia I'm very excited to join Crown crafts and have the opportunity to lead the finance and accounting team to support the Companys financial and strategic goals and drive shareholder value welcomed player. We're excited to have you join our T. Before I turn it over to Craig to walk through the financials in more detail I would like to thank him for his leadership hard work and dedication.

Olivia Elliott: Before I turn it over to Craig to walk through the financials in more detail, I would like to thank him for his leadership, hard work, and dedication in helping us achieve our goals. The entire Crown Crafts team wishes him a very happy retirement.

Olivia Elliott: Patient, helping us achieve our goals the entire crown crafts team wishes him a very happy retirement.

Craig Demarest: Thank you, Olivia. It's been a pleasure working with you, the Crown Crafts team, the board of directors, and all of our shareholders over the last four years.

Craig: Thank you Olivia it's been a pleasure working with you the crown crafts team the board of directors and all of our shareholders over the last four years.

Craig Demarest: I'll begin with a look at the fourth quarter results and then provide some color on the full year results. Fourth quarter net sales were $23.2 million, a 2.9% increase compared to the prior year quarter. The increase was driven by strong sales of Baby Boom products, partially offset by a decline in sales of bibs, toys, and disposable products.

Speaker Change: I'll begin with a look at the fourth quarter results and then provide some color on the full year results.

Fourth quarter net sales were $23 2 million or two 9% increase compared to the prior year quarter.

Speaker Change: The increase was driven by strong sales of baby boom products, partially offset by a decline in sales of bibs toys and disposable products.

Craig Demarest: Gross profit for the quarter was 18.3% compared to 23.2% in the fourth quarter of fiscal 24. The margin decrease is primarily related to the impact of higher tariffs, increased rent at our Compton facility, an increase in royalty expense resulting from the baby boom acquisition, and higher closeout sales at lower margins as we continue to lower our inventory level. Marketing and administrative expenses during the quarter increased 17% year over year, driven by increased advertising costs and the expenses associated with the Baby Boom business.

Speaker Change: Gross profit for the quarter was 18, 3% compared to 23, 2% in the fourth quarter of fiscal 'twenty four.

Speaker Change: The margin decrease is primarily related to the impact of higher tariffs increased rent at our comp and facility an increase in royalty expense, resulting from the baby boom acquisition and higher closeout sales at lower margins as we continue to lower our inventory levels.

Speaker Change: Marketing and administrative expenses during the quarter increased 17% year over year, driven by increased advertising costs and the expenses associated with the baby boom business.

Craig Demarest: Gap net loss for the fourth quarter was $10.8 million, or $1.04 loss per diluted share. Gap net loss was the result of a $13.8 million goodwill impairment charge resulting from the prolonged decline in our market capitalization, indicating a decline in the fair value of our goodwill reporting unit. Following the impairment charge, we have no goodwill in our balance sheet at March 30, 2025.

Speaker Change: GAAP net loss for the fourth quarter was $10 8 million or $1 four loss per diluted share GAAP net loss was the result of a $13 $8 million goodwill impairment charge, resulting from the prolonged decline in our market capitalization, indicating a decline in the fair value of our goodwill.

Speaker Change: All reporting units following the impairment charge, we had no goodwill in our balance sheet at March 30, <unk> 2025.

Craig Demarest: Adjusted net loss was $429,000 or adjusted diluted loss per share of $0.04.

Speaker Change: Adjusted net loss was 429000 or adjusted diluted loss per share of four cents.

Craig Demarest: Turning now to our results for the full year. Net sales for fiscal 25 were $87.3 million compared to $87.6 million in the prior year. As Olivia mentioned earlier, sales were impacted by consumers pulling back due to economic conditions. However, we did see the addition of $11.9 million in net sales from the Baby Boom acquisition, but that was more than offset by declines in the legacy. Gross profit for the year was 24.4 percent compared to 26.4 percent in fiscal 24, primarily reflecting increased tariffs, rent, and royalty expense, as well as higher closeout sales mentioned earlier. Marketing and administrative expenses included 1.1 million in acquisition costs associated with the Baby Boom acquisition and $244,000 related to the closure of the company's subsidiary in the UK.

Speaker Change: Now to our results for the full year net sales for fiscal 'twenty five were $87 3 million compared to $87 6 million in the prior year.

Olivia Elliott: And Olivia mentioned earlier sales were impacted by consumers pulling back due to economic conditions.

Olivia Elliott: However, we did see the addition of $11 9 million in net sales from the baby boom acquisition, but that was more than offset by declines in the legacy business.

Olivia Elliott: Gross profit for the year was 24, 4% compared to 26, 4% in fiscal 'twenty, four primarily reflecting increased tariffs rent and royalty expense as well are higher as well as higher closeout sales mentioned earlier.

Olivia Elliott: Marketing and administrative expenses included $1 1 million in acquisition costs associated with the baby boom acquisition and 244000 related to the closure of the Companys subsidiary in the U K.

Craig Demarest: Gap net loss for fiscal 25 was $9.4 million or $0.90 loss per diluted share. Gap net loss was impacted by the goodwill impairment charge discussed earlier. Adjusted net income for the year was $1 million or adjusted diluted earnings per share of $10,000.

Olivia Elliott: GAAP net loss for fiscal 'twenty, five was $9 4 million or 90 cents loss per diluted share GAAP net loss was impacted by the goodwill impairment charge discussed earlier.

Olivia Elliott: Adjusted net income for the year was $1 million or adjusted diluted earnings per share of 10 cents.

Craig Demarest: Turning now to our balance sheet, as of the end of Fiscal 25, cash and cash equivalents totaled $521,000 compared to $830,000 at the end of Fiscal 24. Inventories were $27.8 million, a decrease of 6.4 percent compared to $29.7 million at the end of the last fiscal year. The decline was driven by higher closeout sales to prepare for our upcoming warehouse consolidation. Borrowings under our credit facility at the end of Fiscal 25 were $18.5 million compared to $8.1 million at the end of Fiscal 24, reflecting amounts borrowed in the second quarter to fund the Baby Boom acquisition.

Olivia Elliott: Turning now to our balance sheet as of the end of fiscal 'twenty, five cash and cash equivalents totaled 521000 compared to 830000 at the end of fiscal 'twenty four.

Olivia Elliott: Inventories were $27 8 million a decrease of six 4% compared to $29 7 million at the end of the last fiscal year <unk>.

Olivia Elliott: The decline was driven by higher closeout sales to prepare for our upcoming warehouse consolidation.

Olivia Elliott: Borrowings under our credit facility at the end of fiscal 'twenty, five or $18 5 million compared to $8 1 million at the end of fiscal 'twenty four reflecting amounts borrowed in the second quarter to fund the baby boom acquisition.

Craig Demarest: 2025 cash flow from operations was $9.8 million compared to $7.1 million in the prior year. We expect to use our cash flow to repay borrowings, however, as always, our debt balance may fluctuate from quarter to quarter due to the timing of inventory purchases and other working capital And finally, we paid $0.32 per share in cash dividends to shareholders in fiscal 25 with a yield of 10% based on yesterday's close. This marks the 15th consecutive year paying out dividends to our shareholders. Our dividend is a key component of our capital allocation strategy of creating and returning value to our shareholders.

Olivia Elliott: 2025 cash flow from operations was $9 8 million compared to $7 1 million in the prior year.

Olivia Elliott: We expect to use our cash flow to repay 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.

Olivia Elliott: And finally, we paid 32 cents per share in cash dividends to shareholders in fiscal 'twenty by with a yield of 10% based on yesterday's close this marks the 15th consecutive year of paying out dividends to our shareholders. Our dividend is a key component of our capital allocation strategy of creating and returning.

Olivia Elliott: To our shareholders and now I'll turn the call back over to Olivia for additional comments. Thank you Craig over the last couple of years. The economy has been a headwind for consumers and ultimately crown crafts. During this time, we've taken several steps forward to position the company for long term success when the economy starts to improve we've added.

Olivia Elliott: And now I'll turn the call back over to Olivia for additional comments. Thank you, Craig. Over the last couple of years, the economy has been a headwind for consumers and ultimately Crown Crafts. During this time, we have taken several steps forward to position the company for long-term success when the economy starts to improve. We have added more products to our portfolio through acquisition and our own internal product development. We have added more of the most popular and trending brands through acquisition or by expanding the depth of our product catalog. We continue to have good working relationships with our major retail partners and we have expanded our e-commerce capability.

Olivia Elliott: More product to our portfolio through acquisition and our own internal product development.

Olivia Elliott: Added more of the most popular trending brands through acquisition or by expanding the depth of our product catalog. We continue to have good working relationships with our major retail partners and we have expanded our e-commerce capabilities.

Olivia Elliott: I would like to thank our team for their resilience and all the hard work they have put into integrating our acquisitions. finding opportunities to cut costs, and for their commitment to making Crown Crafts one of the leading producers of infant, toddler, and juvenile consumer products.

Olivia Elliott: We'd like to thank our team for their resilience and all the hard work they have put into integrating our acquisitions finding opportunities to cut cost and for their commitment to making crown crafts, one of the leading producers of infant toddler in juvenile consumer consumer products as.

Olivia Elliott: As we begin fiscal 2026, our most pressing challenge is navigating the impact of tariffs. As of now, the goods we order will incur an additional 30% tariff. We are working with our manufacturers and our retail partners to absorb a portion of this amount, and we are also looking at other ways to mitigate additional tariff expenses. We will continue to explore ways to increase sales and gain market share. This includes product and channel expansion.

Olivia Elliott: As we begin fiscal 2026, our most pressing challenge is navigating the impact of tariffs as of now the goods, we order will incur an additional 30% tariffs were.

Olivia Elliott: We're working with our manufacturers and our retail partners to absorb a portion of this amount and we are also looking at other ways to mitigate additional tariff expenses, we will continue to explore ways to increase sales and gain market share.

Olivia Elliott: This includes product and channel expansions.

Olivia Elliott: In closing, I would like to thank our shareholders for your support, and we look forward to updating you on our progress throughout the year.

Olivia Elliott: In closing I would like to thank our shareholders for your support and we look forward to updating you on our progress throughout the year with that I'd like to open the line for questions.

Operator: With that, I'd like to open the line for questions. Thank you. If you'd like to ask a question, please press star then 1 on your telephone keypad. If you're using a speakerphone, we ask that you please pick up your handset before pressing the keys. If at any point your question has been addressed and you'd like to remove yourself from the queue, please press star then 2.

Olivia Elliott: Thank you.

Speaker Change: And could I ask a question. Please press Star then one on your telephone keypad.

Speaker Change: If you're using a speaker phone we ask you. Please pickup your handset before pressing the cheese.

Speaker Change: At any point your question has been addressed and you'd like to remove yourself from queue. Please press Star then two.

Doug Ruth: Today's first question comes from Doug Ruth, Atlantic Financial Services. Please go ahead. First, I would like to thank Craig for what he has done for the shareholders. I thought you did a really nice job with the reporting.

Speaker Change: Today's first question comes from Doug Ruth with Lenox Hill.

Olivia Elliott: With services. Please go ahead.

Speaker Change: First I would like to thank Craig for what he has done for the shareholders. I thought you did a really nice job with the reporting.

Doug Ruth: I want to wish you well in retirement and I also want to welcome Claire to the team. or just seeing what, you know, how you're able to increase shareholding. Thank you Doug, appreciate it. You're welcome.

Olivia Elliott: And I want to wish you well in your retirement.

Olivia Elliott: I also want to welcome clear to the team.

Olivia Elliott: Looking forward to seeing what you know how you were able to increase shareholder value.

Speaker Change: Thank you Doug I appreciate it.

Olivia Elliott: Youre welcome.

Olivia Elliott: Can you give us, Olivia, can you give us an update on where things are with the warehouse at this point? So we're still exploring pretty much every option that we can think of, but with tariffs, we've kind of put that on the For the last few months, we've been focused on tariffs and not really on the warehouse, but we're still exploring those options. Do you still think you'll make a decision sometime here in fiscal 2026? I hope so, you know, we're probably slowing down on the timeline for actual moving, but I think we will make some decisions, you know, in the near future.

Olivia Elliott: Can you give us a olivia can you give us an update on where where things are with the warehouse at this point.

Olivia Elliott: No we're still exploring pretty much every option that that we can think of but with tariffs. We we've kind of put that on the yeah for the last few months, we've been focused on tariffs and not really on the warehouse, but we're still exploring those options.

Olivia Elliott: Do you do you still think you'll do you still think you'll make a decision sometime here in fiscal 2026.

Olivia Elliott: I hope so yeah, we're probably slowing down on the timeline for actual moving but I think we will make some decisions in.

Olivia Elliott: In the near future.

Olivia Elliott: Okay.

Olivia Elliott: I understand that you went to the New York Toy Show that was held in March. I was wondering, how did the show go for the company? So, yeah, we, we had a lot of our sales and development team that attended Toy Fair. I think they had a lot of really good good traffic and some good feedback on the new products that we showed and. They actually wrote some orders, but it's not really common to write orders at the show anymore with just the EDI capabilities, et cetera. So, from what I understand, everything went well, and the products that we intend to The new products show very well.

Olivia Elliott: I understand that you went to the New York Toy show that was held in.

Olivia Elliott: March I was wondering how did the show go for the company.

Olivia Elliott: So yeah. We are we had a lot of our sales and product development team that attended a toy fair I think they had a lot of really good good traffic and some good feedback on the new products that we show and yes. They they actually wrote some orders, but it's not really common to write orders at the show.

Olivia Elliott: More with them just to that.

Olivia Elliott: The edr capabilities et cetera, so from what I understand everything went well and the products that we intend to.

Olivia Elliott: The new products show very well.

Olivia Elliott: And then I know that one thing that is featured on the website is the Stella doll, a new Stella doll, and then I understand that Meghan Markle had purchased a doll for her daughter. Are you able to comment on what's happening with the Stella doll and the redesign and any kind of sell-through? Yes, and so we redesigned what was called Stella and Wee Baby Stella, and now we have a new Love Stella line that includes a newborn doll.

Olivia Elliott: And then I know that the one thing that that diet is featured on the website is the the stellar Dol and a new style of Dol and then I understand that Meghan Markle, who.

Olivia Elliott: Purchased the Dol for her her daughter.

Olivia Elliott: Are you able to comment on how the what's happening with the the style of Dol and the redesign and any kind of sell through.

Olivia Elliott: Yes, and so we redesigned our what was called a stellar and we may be stellar and now we have a new love stellar line that includes a newborn Dol no.

Olivia Elliott: Before the product started more, it may be the toddler age range. And so now we've got a newborn doll. We've redesigned the toddler doll so that it sits up better. And, yes, Megan Markle did include our Stella doll on one of her shows and it certainly helped with a lot of the marketing and the advertising and the social media.

Olivia Elliott: Four of the the products started more maybe the toddler age range and so now we've got a newborn Dol we've redesigned the toddler doll, so that it sets up better and yes, Meghan Markle did include our stellar dial on one of her shows and it's certainly helped.

Olivia Elliott: A lot of the marketing and the advertising and the social media.

Olivia Elliott: Okay, then I understand that the world's largest Legoland is going to open in Shanghai on July 5th. And I was wondering if that creates some opportunity for, will Crown Craft be providing some of the Star Wars plush animals for that, plush figurines for that location? Yes, so they had a soft opening. I believe, I can't remember if it was in late May or early June, and from what I understand, the soft opening went very well and we are supplying the plush for that part. And then were the sales to, were Crown Crafts sales to Legoland, did they increase in fiscal 2025 versus fiscal 2024?

Olivia Elliott: Okay.

Olivia Elliott: Then I understand that the the world's largest legal land, it's going to open in Shanghai on July 5th.

Olivia Elliott: And I was wondering if that creates some opportunity for.

Olivia Elliott: Well, we'll watch crown crafts provide.

Olivia Elliott: Providing some of the Star wars plush animals for that.

Olivia Elliott: Our plush figurines for that location.

Olivia Elliott: Yes, so they had a soft opening I believe I can't remember if it was in late May early June and from what I understand the soft opening went very well and we.

Olivia Elliott: We are supplying the plush for that park.

Olivia Elliott: And then worthy Ah.

Olivia Elliott: Whereas the sales to <unk>.

Olivia Elliott: We're crown crafts sales to like Oh land did they increase in fiscal 'twenty twenty-five versus fiscal 2024.

Olivia Elliott: 2025 versus 24, yes, I think that the changeover, so I don't know if you recall that they were only going to allow the Lego branded plush into the parks. Take it used to be us and then a couple of other competitors. And so we had some some form of a transition throughout this year, but it has gone slower than we expected, but we expect that in the near future will be the only plush in the park.

Olivia Elliott: 2025 versus 24, yes, I think that the changeover. So I don't know if you recall that they were only going to allow the Lego branded flash into the parks.

Olivia Elliott: Take it used to be us and then a couple of other competitors and so we had some some form of a transition throughout this year, but it has gone slower than we expected, but we expect that in the near future, we'll be the only flushing the park.

Olivia Elliott: Okay.

Olivia Elliott: And then you had also talked in the past about the diaper bags, that there might be opportunity with possibly some new brands, is there any development there? Yes, we're still working on that. We've got a lot of excitement from some of our licensing partners that want us to do some licensed diaper bags.

Olivia Elliott: Then you had also talked in the past about the diaper bags that there might be opportunities with possibly some new brands.

Olivia Elliott: Any development there.

Olivia Elliott: Yes, we're still working on that we've got a lot of excitement from some of our licensing partners that want us to do some license diaper bags.

Olivia Elliott: To be frank, the tariffs are hitting the diaper bags harder than anything, so we're trying to look at opportunities to keep those costs within reason so that we can expand that further.

Olivia Elliott: To be Frank the tariffs are hitting a diaper bags hardest harder than anything so where I'm trying to look at opportunities to keep those costs within reason so that we can expand that further.

Doug Ruth: At one time they had talked about a potential tax credit for importing products for children or for babies.

Speaker Change: At one one time, you had talked about a potential <unk>.

Olivia Elliott: Tax credit for Oh for importing.

Olivia Elliott: Importing product for for for children are for babies is it is there any update on that at all.

Olivia Elliott: Is there any update on that at all? I think, are you talking about the tax credit for parents, maybe, not really for us? For parents, yeah, for like for babies. I have not really heard of that. I haven't heard if that went through or if that's part of the final plan, but there was some talk at some point about giving new parents a tax credit.

Olivia Elliott: I think are you talking about the tax credit for parents, maybe not really for us.

Olivia Elliott: Parents Sabra, yeah for for like for babies and.

Olivia Elliott: I have no I realize it's pretty bad.

Olivia Elliott: I haven't heard it that went went through or if that's part of the final plan, but but there was some talk at some point about giving parents new parents they tax credit yes.

Olivia Elliott: Okay, and then how about the distribution in Europe, using the distributor instead of the direct sales force, is that helping the company? Yes, it, you know, it takes some time to get all of the new products flowing through the distributors, but I think at the end of the day, we're anticipating our international sales to continue to go up.

Olivia Elliott: Okay, and then how about the distribution in Europe.

Olivia Elliott: Using the distributor instead of direct sales force is that is that is helping the company.

Olivia Elliott: Yes, and you know it takes some time to get all of the new product flow in through the distributors, but I think at the end of the day, we're anticipating our international sales to continue to go up.

Olivia Elliott: Yeah.

Olivia Elliott: And my last question is, how about the Manhattan Toy website, the redesign there, has that made a difference for the company? Oh, I think so. I mean, it's much easier to shop on the website. I think we've got a much better visual. It's updated. And I think that, you know, we're doing a good job of driving more people to the website through our social media posts, et cetera. Very good, that's nice to hear that.

Olivia Elliott: And my last question is how about the Manhattan twice our website redesign there or is that has that made a difference for the company.

Olivia Elliott: Oh, I think so I mean, it's much easier to shop on the web side I think we've got a much better visual it's updated them and I think that yeah. We're doing a good job of driving more people to the website to our social media posts et cetera.

Speaker Change: Oh very good that's a nice to hear that okay.

Doug Ruth: Okay, I'm going to thank you for answering my questions and all the best to you, Craig. Thanks so much Doug. Thanks Doug. Thank you.

Speaker Change: Thank you for answering my questions and.

Speaker Change: All the best to you Craig.

Speaker Change: Thanks, so much to thank them.

Operator: And as a reminder, if you'd like to ask a question, please press star then one at this time.

Speaker Change: Thank you and as a reminder, if you'd like to ask a question. Please press Star then one at this time.

David Woodya: Our next question comes from David Woodya, a private investor, please go ahead. Yes, my questions have been answered. Thank you. Thank you, sir.

David: Our next question comes from David What are you a private investor. Please go ahead.

David: Yes, my questions have been answered thank you.

Speaker Change: Some of it.

Operator: And this does conclude our question and answer session.

Speaker Change: And this does conclude our question and answer session I'd like to turn the conference back over to the management team for any closing remarks.

Operator: I'd like to turn the conference back over to the management team for any closing remarks. Thank you. We'd like to thank you for your continued support of Crown Crafts, and we look forward to updating you on our Q1 earnings, which will be in mid-August. Thank you very much. Thank you.

David: Thank you we'd like to thank you for your continued support of Crown Crafts, and we look forward to updating you on our Q1 earnings which will be in mid August. Thank you very much.

David: Thank you. This concludes today's conference call.

Operator: This concludes today's conference call. We thank you all for attending today's presentation. You may now disconnect your lines and have a wonderful day. Thank you.

David: Thank you all for attending today's presentation. You may now disconnect your lines and have a wonderful day.

David: [music].