Crown Crafts (NASDAQ:CRWS) Releases Quarterly Earnings Results, Misses Expectations By $0.02 EPS

Crown Crafts (NASDAQ:CRWS) announced its earnings results on Thursday. The textile maker reported $0.12 EPS for the quarter, missing analysts’ consensus estimates of $0.14 by ($0.02), FiscalAI reports. The company had revenue of $19.03 million during the quarter, compared to the consensus estimate of $20.90 million. Crown Crafts had a return on equity of 12.79% and a net margin of 5.99%.

Here are the key takeaways from Crown Crafts’ conference call:

• Sales declined: Second-quarter net sales fell to $19 million from $23.7 million a year earlier amid soft consumer demand. Management said roughly half the decline reflected an unusually strong year-ago comparison, with the remainder tied to discontinued programs and products it chose to stop selling because they were unprofitable.
• Profitability improved despite lower sales: Adjusted gross margin rose to 30.9% from 27.7%, which management attributed to product mix and pricing initiatives; lower overhead also helped lift GAAP net income to $1.3 million and EPS to $0.12 from $0.11.
• Cash generation strengthened the balance sheet: Year-to-date operating cash flow reached $11 million, partly aided by tariff refunds, and debt fell to $5.3 million from $14.1 million at the start of the fiscal year. The company reported $18.8 million in total liquidity and said it plans to continue its dividend, which currently yields about 5%.
• Tariff costs and potential relief remain uncertain: Management said current tariffs are 12.5% across product categories, while a possible return to zero tariffs for toys has no effective date. The company is also awaiting just under $900,000 in tariff refunds that it has not recorded as a receivable.
• Growth and efficiency initiatives are advancing: Groovy Girls is now available on Amazon, and the company reported positive interest in the line at a European toy show. It is exploring sourcing outside China and planning warehouse consolidation, though the latter is targeted for around April–May 2028.

Crown Crafts Price Performance

Shares of CRWS traded down $0.04 during mid-day trading on Thursday, reaching $2.43. The stock had a trading volume of 96,302 shares, compared to its average volume of 52,131. The business has a fifty day moving average of $2.50 and a 200 day moving average of $2.77. The company has a debt-to-equity ratio of 0.19, a quick ratio of 1.40 and a current ratio of 3.20. The firm has a market cap of $26.15 million, a price-to-earnings ratio of 5.17 and a beta of 0.68. Crown Crafts has a 12 month low of $2.30 and a 12 month high of $3.14.

Wall Street Analyst Weigh In

Several analysts have issued reports on the company. Wall Street Zen raised Crown Crafts to a “strong-buy” rating in a report on Saturday, August 29th. Weiss Ratings raised Crown Crafts from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Wednesday, November 4th. One investment analyst has rated the stock with a Hold rating. According to data from MarketBeat.com, the company has a consensus rating of “Hold”.

Crown Crafts Company Profile

Crown Crafts, Inc. is a consumer products company that designs, markets and distributes products for infants, toddlers and young children. Its offerings include feeding and care products, bibs, bath accessories, developmental toys, activity products, nursery bedding, blankets and other nursery accessories. The company sells products through mass-market retailers, specialty stores and e-commerce channels. Crown Crafts markets products under proprietary brands such as Neat Solutions and Sassy, as well as through licensed brands and designs.