Crown Crafts, Inc.

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

Good morning, everyone, and thank you for joining the Crowncraft's fourth quarter and fiscal 2025 conference call. Joining me on the call today are Crowncraft's President and CEO, Olivia Elliott, CFO, Craig Damaris, 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 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. Now I'd like to turn the call over to President and CEO Olivia Elliott.

Thank you, Matt. Good morning, everyone. 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. However, as part of our long-term strategic plan, we continued 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 Bluey and Miss Rachel. 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. 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. Finally, I would like to introduce the newest member of our team, Claire Spencer. Claire joined Crown Crafts on June 16th, and as Matt mentioned, will become CFO on June 30th.