Q1 2027 Crown Crafts Inc Earnings Call

August 12, 2026

Speaker #1: Good afternoon, everyone, and welcome to the Crown Crafts fiscal year 2027 first quarter conference call. During today's call, the company may make certain forward-looking statements, and actual results may differ materially from those expressed or implied.

Operator 2: Good afternoon, everyone, and welcome to the Crown Crafts Fiscal Year 2027 Q1 conference call. 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, including its annual report on Form 10-K. With that, I would now like to turn the call over to President and Chief Executive Officer, Olivia Elliott. Please go ahead.

Operator: Good afternoon, everyone, and welcome to the Crown Crafts Fiscal Year 2027 Q1 conference call. 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, including its annual report on Form 10-K. With that, I would now like to turn the call over to President and Chief Executive Officer, Olivia Elliott. Please go ahead.

Speaker #1: These statements are subject to risks and uncertainties that may be beyond Crown Crafts' control. The company is under no obligation to update these statements.

Speaker #1: 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, including its annual report on Form 10-K.

Speaker #1: With that, I would now like to turn the call over to President and Chief Executive Officer Olivia Elliott. Please go ahead.

Speaker #2: Thank you, Operator, and thank you, everyone, for joining this afternoon's call. Today, after the close, Crown Crafts reported very solid quarterly results, given the still-soft demand environment.

Olivia Elliott: Thank you, operator, and thank you, everyone, for joining this afternoon's call. Today, after the close, Crown Crafts reported very solid quarterly results given the still soft demand environment. We accomplished this by focusing on what we can control, and our team did a terrific job executing on our strategy. We were able to grow our net sales 8%, despite the uncertainty that consumers continue to feel around high interest rates, inflation, and global geopolitical events. Improved inventory levels account for most of the growth, as we were able to better meet demand than during last year's tariff instability. Just as important, we were able to drive a higher growth margin, both on a GAAP basis and also when adjusting for tariff refunds, as Claire will walk us through in a moment.

Speaker #2: We accomplished this by focusing on what we can control, and our team did a terrific job executing on our strategy. We were able to grow our net sales 8% despite the uncertainty that consumers continue to feel around high interest rates inflation and global geopolitical events.

Speaker #2: Improved inventory levels account for most of the growth, as we were able to better meet demand than during last year's tariff instability. Just as important, we were able to drive a higher growth margin both on a gap basis and also when adjusting for tariff refunds.

Speaker #2: As Claire will walk us through in a moment. On an adjusted basis, our growth margin for the quarter climbed nearly 3 full percentage points year over year, to 25.6%.

Olivia Elliott: On an adjusted basis, our gross margin for the quarter climbed nearly 3 full percentage points year-over-year to 25.6%. As a result, we were able to produce positive net income versus the loss reported in the prior year period, and we once again generated positive operating cash flow of nearly $5 million, similar to the March quarter. Combined with a significant reduction in our debt balance during the quarter, our balance sheet is significantly strengthened. As we mentioned on our last call, during the June quarter, we relaunched Manhattan Toy Brands' Groovy Girls. I am pleased to say that so far, sales of this iconic line of fashion dolls has exceeded our expectations, largely driven by the Canadian market, and we believe this bodes well for continued success of this retro-inspired, beloved brand.

Olivia Elliott: On an adjusted basis, our gross margin for the quarter climbed nearly 3 full percentage points year-over-year to 25.6%. As a result, we were able to produce positive net income versus the loss reported in the prior year period, and we once again generated positive operating cash flow of nearly $5 million, similar to the March 2026 quarter. Combined with a significant reduction in our debt balance during the quarter, our balance sheet is significantly strengthened. As we mentioned on our last call, during the June 2026 quarter, we relaunched Manhattan Toy Brands' Groovy Girls. I am pleased to say that so far, sales of this iconic line of fashion dolls has exceeded our expectations, largely driven by the Canadian market, and we believe this bodes well for continued success of this retro-inspired, beloved brand.

Speaker #2: As a result, we were able to produce positive net income, versus the loss reported in the prior year period. And we once again generated positive operating cash flow of nearly $5 million, similar to the March quarter.

Speaker #2: Combined with the significant reduction in our debt balance during the quarter, our balance sheet is significantly strengthened. As we mentioned on our last call, during the June quarter, we relaunched Manhattan Toy Brands Groovy Girls.

Speaker #2: I'm pleased to say that so far, sales of this iconic line of fashion dolls have exceeded our expectations, largely driven by the Canadian market.

Speaker #2: And we believe this bodes well for continued success of this retro-inspired beloved brand. Next, I'll provide an update on our strategic initiatives to grow both our top and bottom line.

Olivia Elliott: Next, I will provide an update on our strategic initiatives to grow both our top and bottom line. A top priority is our ongoing innovative internal product development to expand our product offerings. Another initiative is to build on our recent margin expansion to further drive profitability, from moving towards a favorable mix of higher margin products and of course, our relentless spending discipline. We are also striving to consolidate certain internal operations for greater efficiency, reduce our debt levels, and over the next 2 years, we will be working on warehouse consolidation to further enhance our operating structure.

Olivia Elliott: Next, I will provide an update on our strategic initiatives to grow both our top and bottom line. A top priority is our ongoing innovative internal product development to expand our product offerings. Another initiative is to build on our recent margin expansion to further drive profitability, from moving towards a favorable mix of higher margin products and of course, our relentless spending discipline. We are also striving to consolidate certain internal operations for greater efficiency, reduce our debt levels, and over the next two years, we will be working on warehouse consolidation to further enhance our operating structure.

Speaker #2: A top priority is our ongoing, innovative internal product development to expand our product offerings. Another initiative is to build on our recent margin expansion to further drive profitability.

Speaker #2: From moving towards a favorable mix of higher-margin products, and, of course, our relentless spending discipline. We're also striving to consolidate certain internal operations for greater efficiency.

Speaker #2: Reduce our debt levels, and over the next two years, we'll be working on warehouse consolidation to further enhance our operating structure. These initiatives to create long-term value can often require upfront investment.

Olivia Elliott: These initiatives to create long-term value can often require upfront investment, and to that end, our board has elected to right-size our quarterly dividend, which will provide us strategic access to a greater portion of our cash flow that will also allow us to pay down debt and build the balance sheet strength that will support Crown Crafts' growth well into the future. In essence, our new quarterly dividend allows for a well-balanced capital allocation approach that includes investing in growth initiatives and maintaining a solid balance sheet while still rewarding our valued shareholders with what is now approximately a 4% attractive dividend yield. In closing, we had a solid quarter as we continue to execute on our business plan.

Speaker #2: And to that end, our board has elected to rightsize our quarterly dividend, which will provide strategic access to a greater portion of our cash flow. That will also allow us to pay down debt and build the balance sheet strength that will support Crown Crafts' growth well into the future.

Speaker #2: In essence, our new quarterly dividend allows for a well-balanced capital allocation approach, that includes investing in growth initiatives and maintaining a solid balance sheet, while still rewarding our valued shareholders with what is now approximately a 4% attractive dividend yield.

Speaker #2: In closing, we had a solid quarter as we continue to execute on our business plan. While leveraging our inherent strengths—including our brands, our licenses, and our valued retail and licensing partners—our multi-pronged strategy, which covers the internal development of new products, reinvigorated marketing efforts, tight cost controls, and the strategic allocation of capital, positions us well for the creation of long-term shareholder value.

Olivia Elliott: While leveraging our inherent strengths, including our brands, our licenses, and our valued retail and licensing partners, our multi-pronged strategy that covers internal development of new products, reinvigorated marketing efforts, tight cost controls, and the strategic allocation of capital positions us well for the creation of long-term shareholder value. Now I will turn it over to Claire to provide additional details around our quarterly results before we take your questions.

Speaker #2: And now, I'll turn it over to Claire to provide additional details around our quarterly results before we take your questions.

Speaker #3: Thank you, Olivia, and welcome, everyone, once again to the call. Our first quarter net sales of $16.8 million were up 8% over the prior quarter, as improved inventory levels helped us capitalize on still-soft consumer spending.

Claire Spencer: Thank you, Olivia, and welcome everyone once again to the call. Our Q1 net sales of $16.8 million were up 8% over the prior quarter as improved inventory levels helped us capitalize on still soft consumer spending. As Olivia mentioned, we had strong gross margin performance. During the quarter, tariff refunds reduced our cost of products sold by $3.7 million. Even adjusting for this benefit, our gross profit of $4.3 million was above the prior year of $3.5 million and equates to a gross profit margin of 25.6%, which was up 290 basis points year over year. This expansion of our adjusted gross margin reflects both our strategic pricing initiatives and an increasingly favorable mix of higher-margin products.

Speaker #3: As Olivia mentioned, we had strong gross margin performance. During the quarter, tariff refunds reduced our cost of products sold by $3.7 million. Even adjusting for this benefit, our gross profit of $4.3 million was above the prior year's $3.5 million and equates to a gross profit margin of 25.6%, which was up 290 basis points year over year.

Speaker #3: This expansion of our adjusted gross margin reflects both our strategic pricing initiatives and increasingly favorable mix of higher margin products. We recorded marketing and administrative expense of $5.2 million for the first quarter, as compared to $4.7 million a year earlier, although this quarter's figure includes just over half a million dollars of accrued incentive and compensation associated with tariff refunds.

Claire Spencer: We recorded marketing and administrative expense of $5.2 million for the Q1 as compared to $4.7 million a year earlier. Although this quarter's figure includes just over half a million dollars of accrued incentive and compensation associated with tariff refunds. On a normalized basis, we reduced marketing and administrative expense as a percent of net sales to 28% versus 30.5% in the Q1 of fiscal 2026, which speaks to our sharp focus on cost efficiencies, as Olivia mentioned. Moving down the income statement, we also successfully reduced net interest expense to only $190,000, well below the year-ago $283,000 as a result of our efforts to reduce debt over the past year.

Speaker #3: On a normalized basis, we reduced marketing and administrative expense as a percent of net sales to 28%, versus 30.5% in the first quarter of fiscal 2026, which speaks to our sharp focus on cost efficiencies, as Olivia mentioned.

Speaker #3: Moving down the income statement, we also successfully reduced net interest expense to only $190,000, well below the year ago $283,000 as a result of our efforts to reduce debt over the past year.

Speaker #3: From a GAAP perspective, we reported net income of $2.1 million, or $0.19 per share, well above the prior year loss of $1.1 million, or $0.10 per share.

Claire Spencer: From a GAAP perspective, we reported net income of $2.1 million or $0.19 per share, well above the prior year loss of $1.1 million or $0.10 per share. While Q1 net income benefited from the tariff-related adjustments described, I will again note that on an adjusted basis, we still generated the Q1 profit versus the prior year quarter's net loss. Turning to our balance sheet, as of 28 June, we had total liquidity of $12.1 million, including cash and equivalents and availability on our revolving line of credit. During the Q1, we significantly reduced our debt from more than $14 million at the start of the fiscal year to just $9.6 million at the end of the quarter.

Speaker #3: While first-quarter net income benefited from the tariff-related adjustments described, I'll again note that on an adjusted basis, we still generated the first quarter profit versus the prior year quarter's net loss.

Speaker #3: Turning to our balance sheet, as of June 28, we had total liquidity of $12.1 million including cash and equivalents and availability on our revolving line of credit.

Speaker #3: During the first quarter, we significantly reduced our debt from more than $14 million at the start of the fiscal year to just $9.6 million at the end of the quarter.

Speaker #3: Not only do we reduce outstanding debt, but our net cash from operating activities of $5.5 million served to further support our balance sheet strength, putting us in a strong position to capitalize on future growth opportunities in a disciplined manner.

Claire Spencer: Not only did we reduce outstanding debt, but our net cash from operating activities of $5.5 million served to further support our balance sheet strength, putting us in a strong position to capitalize on future growth opportunities in a disciplined manner. In summary, this was another quarter of strong execution in which we focused on what we can control while economic conditions remain soft. Even adjusted for tariff refunds, we grew revenues, expanded our gross margin, and generated stronger earnings per share than in the year-ago quarter. We also further strengthened our balance sheet and are well positioned to make progress against our strategic initiatives as we move through the new fiscal year. Now, operator, if you could please open the lines, Olivia and I will be happy to take questions.

Speaker #3: In summary, this was another quarter of strong execution in which we focused on what we can control, while economic conditions remained soft. Even adjusted for tariff refunds, we grew revenues, expanded our gross margin, and generated stronger earnings per share than in the year ago quarter.

Speaker #3: We also further strengthened our balance sheet and are well positioned to make progress against our strategic initiatives as we move through the new fiscal year.

Speaker #3: And now, operator, if you could please open the lines. Olivia and I will be happy to take questions.

Speaker #1: Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad.

Operator 2: Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press *1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press *2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. That is *1 if you would like to ask a question. Our first question will come from Doug Ruth with Lenox Financial Services.

Operator: Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press *1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press *2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. That is *1 if you would like to ask a question. Our first question will come from Doug Ruth with Lenox Financial Services.

Speaker #1: A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue.

Speaker #1: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. And again, that is star 1 if you would like to ask a question.

Speaker #1: And our first question will come from Doug Ruth with Lennox Financial Services.

Speaker #4: Olivia and Claire, congratulations. Fabulous report. I have several questions, so if you feel like I'm asking too many, I don't mind getting back in the queue.

Doug Ruth: Olivia and Claire, congratulations. Fabulous report. I have several questions, so if you feel like I am asking too many, I do not mind getting back in the queue. Could you offer some commentary of what you think is happening with Groovy Girls?

Speaker #4: Could you give us—offer some commentary on what you think is happening with Groovy Girls?

Speaker #2: So Groovy Girls has done phenomenally well in Canada, and as we look back on history, even when you know, before we acquired Manhattan Toy, the first time they launched Groovy Girls, it appears that it took off in Canada first then as well.

Olivia Elliott: Well, Groovy Girls has done phenomenally well in Canada. As we look back on history, even before we acquired Manhattan Toy, the first time they launched Groovy Girls, it appears that it took off in Canada first then as well. We have actually sold so much in Canada at this point in time that we are having to divert inventory that should be coming to the US to go to Canada. So we are really excited about the opportunity there. We will be launching Groovy Girls at Kind + Jugend in Germany for the European market in September.

Speaker #2: So we have actually sold so much in that we're having to divert inventory that should be coming to the US to go to Canada.

Speaker #2: So we're really excited about the opportunity there. And then we'll be launching Groovy Girls at K&J in Germany for the European markets in September.

Speaker #4: Okay. Is there a theory of why the Canadians like Groovy Girls so much?

Doug Ruth: Okay. Is there a theory of why the Canadians like Groovy Girls so much?

Speaker #2: We don't know. I can tell you that so our distributor there partnered with Indigo Bookstores, who really put some marketing efforts behind it, and they hosted an event.

Olivia Elliott: We don't know. I can tell you that our distributor there partnered with Indigo Bookstores, who really put some marketing efforts behind it, and they hosted an event, so that probably helped with it, to have such a large partner to launch with.

Speaker #2: So that probably helped with it, to have such a large partner to launch with.

Speaker #4: Okay. What about do you have you had previously mentioned that ultimately the Groovy Girls will be on Amazon. Is there like a date that that might happen?

Doug Ruth: Okay. You had previously mentioned that ultimately the Groovy Girls will be on Amazon. Is there a date that that might happen?

Speaker #2: We are still hoping to launch early fall. The inventory you know, having it take off faster than we expected, that we it may not be the full line, but we're still targeting you know, October sometime with at least part of the line.

Olivia Elliott: We are still hoping to launch early fall. The inventory having it take off faster than we expected, it may not be the full line, but we're still targeting October sometime with at least part of a line.

Speaker #4: Okay. Very good. And then could you explain to us what the status is of the tariff money? I think you had told us there was maybe around $5 million, maybe $5.5 million.

Doug Ruth: Okay. Very good. Could you explain to us what the status is of the tariff money? I think you had told us there was maybe around $5 million, maybe $5.5 million. Are you expecting more money, or do you think that's it, or?

Speaker #4: Are you expecting more money, or do you think that's it, or?

Speaker #2: We're hoping to get more money. So we had requested reimbursement for $5.6 to $5.7 million in tariffs, and so far we've received about $4.7 million.

Olivia Elliott: We're hoping to get more money. We had requested reimbursement for $5.6 to $5.7 million in tariffs, and so far we've received about $4.7 million. That is the portion that we booked. Most of that was received in July. A very, very small portion had been received in Q1. There's about $900,000 that we still haven't received, and we have not booked.

Speaker #2: And that is the portion that we booked. Most of that was received in July, and a very, very small portion had been received in the first quarter.

Speaker #2: There's about $900,000 that we still haven't received and we have not booked.

Speaker #4: Okay. And then, how has the balance sheet changed? Are you able to tell us anything about, you know, where the balance sheet is now versus where it was, you know, based on, maybe, tariff money?

Doug Ruth: Okay. How has the balance sheet changed? Are you able to tell us anything about where the balance sheet is now versus where it was based on maybe tariff money?

Speaker #2: Do you mean as of today versus the quarter end?

Olivia Elliott: You mean as of today versus the quarter end?

Speaker #4: Yes.

Doug Ruth: Yes.

Speaker #2: It's certainly improved by getting you know, 4-plus million dollars in cash in in the month of July, but that's about all we can really tell you.

Olivia Elliott: It's certainly improved by getting $4-plus million in cash in the month of July, but that's about all we can really tell you.

Speaker #4: Oh, okay. I didn't realize. The $4 million came in in July. Okay. Very good.

Doug Ruth: Oh, okay. I didn't realize the $4 million came in in July. Okay, very good.

Speaker #2: Yeah. So it was booked as of the current assets, as opposed to a trade receivable at quarter end, and.

Olivia Elliott: Yeah.

Doug Ruth: Okay.

Olivia Elliott: It was booked as other current assets as opposed to a trade receivable at quarter end.

Speaker #4: I see. So that's the other current asset that's on the that's on the balance sheet.

Doug Ruth: I see. So that's the other current asset that's on the balance sheet.

Speaker #2: Yeah, and I think there's more information Claire just pointed out in footnote 4.

Olivia Elliott: Yeah, and I think there's more information Claire just pointed out in footnote 4.

Speaker #4: Footnote 4. Okay. Good. Okay. And then what can you tell us about the warehouse?

Doug Ruth: Footnote 4. Okay, good. Okay. What can you tell us about the warehouse?

Speaker #2: We'll be starting that project sometime in late fall, early winter. It's about an 18-month process, and, you know, the plan is to get consolidated sometime in May of 2028.

Olivia Elliott: We will be starting that project sometime in late fall or early winter. It is about an 18-month process, and the plan is to consolidate sometime in May of 2028. That process is not quite started yet.

Speaker #2: So, that process has not quite started yet.

Speaker #4: Okay. And can you provide any additional details about capital expenditures and what you're thinking, and how much you might be spending?

Doug Ruth: Okay. Can you provide any additional details about capital expenditures and what you are thinking and how much you might be spending?

Speaker #2: As of right now, our capital expenditure should just be the normal capital expenditures, which is mainly IT, so it would be any ERP upgrades that we're going through right now, molds for plastic toys, anything for the warehouse is unlikely to be spent in this fiscal year.

Olivia Elliott: As of right now, our capital expenditure should just be the normal capital expenditures, which is mainly IT. It would be any ERP upgrades that we are going through right now, molds for plastic toys. Anything for the warehouse is unlikely to be spent in this fiscal year. It will probably start sometime in the next fiscal year.

Speaker #2: It'll probably start sometime in the next fiscal year.

Speaker #4: Oh, okay. All right. And then how about you know, the international sales are doing so well. Can you share anything that's happening and you know, why they're doing so well, or what you're doing, and that kind of stuff?

Doug Ruth: Okay. All right. How about, the international sales are doing so well. Can you share anything that is happening and why they are doing so well or what you are doing and that kind of stuff?

Speaker #2: Well, a lot of that's Groovy Girls in Canada, but it's more than that in Canada as well. We had two different distributors in Canada previously, and starting in this calendar year—maybe a little bit in December of '25—we got a new distributor that is handling both the Manhattan Toy and Sassy product lines and taking that to all channels.

Olivia Elliott: Well, a lot of that is Groovy Girls in Canada, but it is more than that in Canada as well. We had two different distributors in Canada previously, and starting in this calendar year, maybe a little bit in December of 2025, we got a new distributor that is handling both the Manhattan Toy and Sassy product lines and taking that to all channels. We have seen a pretty good improvement there across the board. Groovy Girls certainly added to it. When we went to Kind + Jugend last fall, we did pick up some new distributors that started buying product maybe later in the fall, early winter. So a little bit in Europe, a little improvement as well.

Speaker #2: So we've seen, you know, a pretty good improvement there across the board. Groovy Girls certainly added to it. And then we did—starting, you know, when we went to K&J last fall—we did pick up some new distributors that started buying product maybe later in the fall, early winter.

Speaker #2: So, a little bit in Europe, a little improvement as well.

Speaker #4: Okay. And then what can you tell us about LEGOLAND? And we know we got that big new facility—or I guess it's a year old now—in Shanghai.

Doug Ruth: Okay. What can you tell us about Legoland? We know you got that big, new facility, or I guess it is a year old now, in Shanghai. What is happening with Legoland?

Speaker #4: What's happening with LEGOLAND?

Speaker #2: I don't think there's been any changes with LEGOLAND. That was the last new park of any size. And a lot of the parks for LEGOLAND actually start winding down and closing for the winter.

Olivia Elliott: I don't think there has been any changes with Legoland. That was the last new park of any size. A lot of the parks for Legoland actually start winding down and closing for the winter. There are some that are open. I know like Florida and California stay open year-round, but a lot of them close maybe sometime in October. So those are more seasonal sales than year-round.

Speaker #2: So, there are some that are open. I know, like Florida and California stay open year-round, but a lot of them close maybe sometime in October.

Speaker #2: So those are more seasonal sales, then year-round.

Speaker #4: Okay. And then how about the Manhattan Toy office in Minnesota? Is there any thoughts or updates on that at all?

Doug Ruth: Okay. How about the Manhattan Toy office in Minnesota? Is there any thoughts or updates on that at all?

Speaker #2: That lease expires at the end of March next year. So we'll obviously not renew that lease. We're still kind of thinking about what we need, if anything at all, in Minneapolis.

Olivia Elliott: That lease expires at the end of March next year. We will obviously not renew that lease. We are still kind of thinking about what we need, if anything at all, in Minneapolis. If we do get a lease, there are two trains of thought there. It is a very small staff, so they can either work from home full time or we may need some small lease that can just hold a few people and like a photography studio. We will not be renewing the very expensive lease that we are in right now.

Speaker #2: If we do get a lease, I mean, there's two trains of thought there. We can either let it's a very small staff, so they can either work from home full-time, or we may need some small lease that can just hold a few people and some like a photography studio, but we will not be renewing the very expensive lease that we're in right now.

Speaker #4: Okay. And my last question, is there any new thoughts or ideas on diaper bags and how the company might proceed with that business?

Doug Ruth: Okay. My last question, is there any new thoughts or ideas on diaper bags and how the company might proceed with that business?

Speaker #2: We're still working on that product line. I mean, we did just start selling the new motherhood diaper bags. Very slow start at this point in time.

Olivia Elliott: We are still working on that product line. We did just start selling the new Motherhood diaper bags. Very slow start. At this point in time, it is only on Amazon. We are working on that. We have a couple of NoJo bags, NoJo branded, one of which is in Walmart, but that is really it right now. We have not given up on diaper bags. We are just still working on it.

Speaker #2: It's only on Amazon. But we're working on that, and then we have a couple of no-go bags, no-go branded, one of which is in Walmart, but that's really it right now.

Speaker #2: But we haven't given up on diaper bags. We're just still working on it.

Speaker #4: Okay. You just did a fabulous job, and thank you for what you did on behalf of the shareholders.

Doug Ruth: Okay. You just did a fabulous job, and thank you for what you did on behalf of the shareholders.

Speaker #2: Thank you.

Olivia Elliott: Thank you.

Speaker #1: And this now concludes our question and answer session. I would like to turn the floor back over to Olivia Elliott for closing comments.

Operator 2: This now concludes our question and answer session. I would like to turn the floor back over to Olivia Elliott for closing comments.

Operator: This now concludes our question and answer session. I would like to turn the floor back over to Olivia Elliott for closing comments.

Speaker #2: Thank you, operator. And again, we appreciate everyone being on the call. We look forward to building on the early success of Groovy Girls and our other innovative products on the way.

Olivia Elliott: Thank you, operator. Again, we appreciate everyone being on the call. We look forward to building on the early success of Groovy Girls and our other innovative products on the way. We appreciate your continued interest in Crown Crafts, and we will keep you posted on our progress as we move through the new fiscal year. Please feel free to reach out with any additional questions, and thanks again for being with us.

Speaker #2: We appreciate your continued interest in CROWN CRAFTS, and we'll keep you posted on our progress as we move through the new fiscal year. Please feel free to reach out with any additional questions, and thanks again for being with us.

Operator 2: Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. You may disconnect your lines and have a wonderful day.

Operator: Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. You may disconnect your lines and have a wonderful day.