Crown Crafts (NASDAQ:CRWS) Issues Quarterly Earnings Results

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

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 Stock Performance

Shares of NASDAQ CRWS traded down $0.04 during mid-day trading on Thursday, hitting $2.43. The company had a trading volume of 96,302 shares, compared to its average volume of 52,131. The stock 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. The company has a debt-to-equity ratio of 0.19, a current ratio of 3.20 and a quick ratio of 1.40. The firm’s 50 day simple moving average is $2.50 and its two-hundred day simple moving average is $2.77.

Analyst Ratings Changes

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

About Crown Crafts

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.