Operator

Greetings, and welcome to the Crown Crafts Fiscal Fourth Quarter 2026 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded.

I'd now like to turn the conference over to your host, Olivia Elliott, Chief Executive Officer. Please go ahead.

Olivia Elliott
CEO, President & Director

Thank you, operator, and welcome, everyone, to this morning's call. We're glad you can join us. We generated solid quarterly results in an operating environment that continues to be challenging. This reflects the strength of our business model, the broad appeal of our brands and, of course, the hard work of our dedicated team. Despite global conflicts, fluctuating tariffs, higher gas prices and consistently high inflation weighing on the American consumer, we were able to hold net sales almost flat with the prior year at $22 million, bringing our full year net sales to more than $80 million. In addition, our gross margin improved to nearly 23% during the fourth quarter, up 460 basis points versus the prior year period. The result was positive net income for the quarter and operating cash flow of more than $8 million for the fiscal year.

An exciting fourth quarter highlight was our February announcement of the relaunch of Manhattan Toy's Groovy Girls, which we kicked off at the North American International Toy Fair following a ceremonial ringing of the closing bell at NASDAQ. This iconic collection of soft fashion dolls has