EXHIBIT 99.1
| For Immediate Release | February 15, 2006 |
Crown Crafts, Inc. Reports Third Quarter of Fiscal Year 2006 Results
Gonzales, Louisiana — Crown Crafts, Inc. (the “Company”) (OTCBB: CRWS) reported net sales for
the third quarter of fiscal year 2006, which ended January 1, 2006, of $17.9 million as compared to
net sales for the third quarter of fiscal year 2005 of $20.7 million. Net income for the quarter
was $1.1 million, or $0.05 per diluted share, compared to net income of $918,000, or $0.04 per
diluted share, for the third quarter of fiscal year 2005.
For the first nine months of fiscal year 2006, the Company had net sales of $52.8 million, down
from $60.6 million in the first nine months of fiscal year 2005. Net income for the first nine
months of the current year was $1,946,000, or $0.09 per diluted share, compared to net income of
$1.7 million, or $0.08 per diluted share, in the prior year.
The decrease in sales for the third quarter and the first nine months of fiscal year 2006 as
compared to the same periods in the prior year is a result of changing customer purchasing and
marketing strategies. Certain customers changed their marketing strategies to decrease the number
of licensed products they carried. Sales were also negatively impacted as customers purchasing
private label merchandise increased the number of items they sourced directly. The Company has
continued to experience price erosion due to changing shipping points from FOB United States to FOB
Asia on a program with one customer. The customer takes ownership of the merchandise prior to the
Company incurring the cost of importation. Additionally, the elimination of quotas effective
January 2005 on infant bedding items has also had a deflationary effect on prices. The Company has
increased profitability in spite of declining sales by controlling costs and reducing interest
expense.
“We are pleased with the results of our sourcing efforts and operational cost controls as gross
margin and profitability have improved. We are not satisfied with our top line, and we are rapidly
responding to market and customer changes in an effort to reclaim sales volume,” commented E.
Randall Chestnut, Chairman, President and Chief Executive Officer of the Company. “The Company is
aggressively pricing existing and new products; however, our philosophy is to maintain
profitability in our business relationships,” Mr. Chestnut continued.
The Company will host a teleconference today at 1:00 p.m. Central Standard Time to discuss the
Company’s results and answer appropriate questions from stockholders. Interested investors may
join the teleconference by dialing (800) 230-1074. Please refer to confirmation number 816269. The
teleconference can also be accessed in listen-only mode by visiting the Company’s website at
www.crowncrafts.com. The financial information to be discussed during the teleconference may be
found prior to the call on the investor relations portion of the Company’s website.
A telephone replay of the teleconference will be available from 3:45 p.m. Central Standard Time on
February 15, 2006 through 11:59 p.m. Central Standard Time on February 22, 2006. To access the
replay, dial (800) 475-6701 in the United States or (320) 365-3844 from international locations.
The access code for the replay is 816269.
Crown Crafts, Inc. designs, markets and distributes infant and juvenile consumer products,
including bedding, blankets, bibs, bath items, diaper bags and accessories, and luxury hand-woven
home décor. Its subsidiaries include Hamco, Inc. in Louisiana, Crown Crafts Infant Products, Inc.
in California and Churchill Weavers, Inc. in Kentucky. Crown Crafts is America’s largest producer
of infant bedding, bibs and bath items. The Company’s products include licensed and branded
collections as well as exclusive private label programs for certain of its customers.
This release contains forward-looking statements within the meaning of the Securities Act of 1933,
the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Such
statements are based upon management’s current expectations, projections, estimates and
assumptions. Words such as “expects,” “believes,” “anticipates” and variations of such words and
similar expressions identify such forward-looking statements. Forward-looking statements involve
known and unknown risks and uncertainties that may cause future results to differ materially from
those suggested by the forward-looking statements. These risks include, among others, general
economic conditions, including changes in interest rates, in the overall level of consumer spending
and in the price of oil, cotton and other raw materials used in the Company’s products, changing
competition,