CRWS

Shares of Crown Crafts, Inc. CRWS have lost 0.7% since the company reported its earnings for the quarter ended June 28, 2026, compared with a 0.4% decline for the S&P 500 Index over the same period. Over the past month, CRWS shares gained 0.3%, trailing the S&P 500’s 2.9% rise. Crown Crafts reported first-quarter fiscal 2027 net sales of $16.8 million, up 8.3% from $15.5 million a year earlier. Net income was $2.1 million, or $0.19 per share, against a net loss of $1.1 million, or $0.10 per share, in the prior-year quarter. Sales of bibs, toys and disposable products increased 23.6% to $10.7 million from $8.7 million, while bedding and diaper bag sales declined 11.2% to $6 million from $6.8 million. CRWS operates as a single reportable segment covering infant, toddler and juvenile products. Gross profit rose 128.3% to $8 million from $3.5 million, while the reported gross margin expanded to 47.9% from 22.7%. The sharp increase reflected $3.7 million of tariff refunds recorded as a reduction to cost of products sold. Excluding those refunds, gross margin was 25.6%, up 290 basis points year over year. Marketing and administrative expenses increased 10.9% to $5.2 million from $4.7 million, including $529,000 of accrued incentive compensation associated with tariff refunds. Net cash provided by operating activities increased to $5.5 million from $5.2 million a year earlier. Crown Crafts ended the quarter with $9.6 million of debt, down from $14.1 million at the beginning of the fiscal year, and had total liquidity of $12.1 million. Inventory declined to $26.8 million as of June 28 from $28.4 million as of March 29, 2026. Crown Crafts, Inc. price-consensus-eps-surprise-chart | Crown Crafts, Inc. Quote Management characterized consumer demand as still soft amid high interest rates, inflation and geopolitical uncertainty, but said improved inventory availability accounted for most of the sales growth after tariff-related inventory disruption in the prior year. Management also highlighted strategic pricing and a more favorable mix of higher-margin products as contributors to adjusted gross-margin expansion. The relaunched Groovy Girls line exceeded management’s expectations, particularly in Canada, where demand became strong enough for Crown Crafts to divert inventory originally intended for the United States. Management also cited improvement from a new Canadian distributor handling both Manhattan Toy and Sassy products, along with some gains from newer European distributors. Tariff refunds were the most significant factor affecting reported profitability. Crown Crafts had $4.7 million of refund claims accepted as of June 28, of which $3.7 million reduced cost of sales and $0.9 million reduced tariff costs capitalized in inventory. The company was still evaluating an additional roughly $0.9 million of refund requests. Revenue growth was primarily attributable to improved inventory availability, while higher international sales contributed to the 23.6% increase in bibs, toys and disposable products. Net interest expense also declined 32.9% to $190,000 from $283,000, reflecting lower debt. Crown Crafts did not provide formal sales or earnings guidance. The company said that it does not anticipate a material change in its estimated 24.1% annual effective tax rate for the remainder of fiscal 2027, although actual results could vary. Management is targeting an October launch of at least part of the Groovy Girls line on Amazon and expects warehouse-related capital spending to begin next fiscal year rather than fiscal 2027. Crown Crafts is pursuing an approximately 18-month warehouse consolidation project, with consolidation targeted for May 2028. The company also plans not to renew its Manhattan Toy office lease in Minnesota when it expires at the end of March 2027 and is evaluating remote work or a smaller facility. Separately, the board reduced the quarterly dividend to $0.03 per share to retain more cash for growth initiatives, debt reduction and warehouse consolidation. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Crown Crafts, Inc. (CRWS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Wednesday, Aug. 12, 2026 at 5:00 p.m. ET President and Chief Executive Officer - Olivia Elliott Vice President and Chief Financial Officer - Claire Spencer Operator: Good afternoon, everyone, and welcome to the Crown Crafts Fiscal Year 2027 First Quarter Conference Call. 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 risks and uncertainties that may be beyond Crown Crafts' 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, including its annual report on Form 10-K. With that, I would now like to turn the call over to President and Chief Executive Officer, Olivia Elliott. Please go ahead. Olivia Elliott: Thank you, operator, and thank you, everyone, for joining this afternoon's call. Today, after the close, Crown Crafts reported very solid quarterly results given the still soft demand environment. We accomplished this by focusing on what we can control, and our team did a terrific job executing on our strategy. We were able to grow our net sales 8% despite the uncertainty that consumers continue to feel around high interest rates, inflation and global geopolitical events. Improved inventory levels account for most of the growth as we were able to better meet demand than during last year's tariff instability. Just as important, we were able to drive a higher gross margin, both on a GAAP basis and also when adjusting for tariff refunds, as Claire will walk us through in a moment. On an adjusted basis, our gross margin for the quarter climbed nearly 3 full percentage points year-over-year to 25.6%. As a result, we were able to produce positive net income versus the loss reported in the prior year period. And we once again generated positive operating cash flow of nearly $5 million, similar to the March quarter. Combined with the significant reduction in our debt balance during the quarter, our balance sheet is significantly strengthened. As we mentioned on our last call, during the June quarter, we relaunched Manhattan Toy brand's Groovy Girls. I'm pleased to say that so far, sales of this iconic line of fashion dolls has exceeded our expectations, largely driven by the Canadian market. And we believe this bodes well for continued success of this retro-inspired beloved brand. Next, I'll provide an update on our strategic initiatives to grow both our top and bottom line. A top priority is our ongoing innovative internal product development to expand our product offerings. Another initiative is to build on our recent margin expansion to further drive profitability. From moving towards a favorable mix of higher-margin products and, of course, our relentless spending discipline. We're also striving to consolidate certain internal operations for greater efficiency, reduce our debt levels. And over the next 2 years, we'll be working on warehouse consolidation to further enhance our operating structure. These initiatives to create long-term value can often require upfront investment. And to that end, our Board has elected to rightsize our quarterly dividend, which will provide us strategic access to a greater portion of our cash flow that will also allow us to pay down debt and build the balance sheet strength that will support Crown Crafts growth well into the future. In essence, our new quarterly dividend allows for a well-balanced capital allocation approach that includes investing in growth initiatives and maintaining a solid balance sheet while still rewarding our valued shareholders with what is now approximately a 4% attractive dividend yield. In closing, we had a solid quarter as we continue to execute on our business plan. While leveraging our inherent strengths, including our brands, our licenses and our valued retail and licensing partners, our multipronged strategy that covers internal development of new products, reinvigorated marketing efforts, tight cost controls and the strategic allocation of capital positions us well for the creation of long-term shareholder value. And now I'll turn it over to Claire to provide additional details around our quarterly results before we take your questions. Claire Spencer: Thank you, Olivia, and welcome, everyone, once again to the call. Our first quarter net sales of $16.8 million were up 8% over the prior year quarter as improved inventory levels helped us capitalize on still soft consumer spending. As Olivia mentioned, we had strong gross margin performance. During the quarter, tariff refunds reduced our cost of products sold by $3.7 million. Even adjusting for this benefit, our gross profit of $4.3 million was above the prior year's $3.5 million and equates to a gross profit margin of 25.6%, which was up 290 basis points year-over-year. This expansion of our adjusted gross margin reflects both our strategic pricing initiatives and an increasingly favorable mix of higher-margin products. We recorded marketing and administrative expense of $5.2 million for the first quarter as compared to $4.7 million a year earlier, although this quarter's figure includes just over $0.5 million of accrued incentive compensation associated with tariff refunds. On a normalized basis, we reduced marketing and administrative expense as a percent of net sales to 28% versus 30.5% in the first quarter of fiscal 2026, which speaks to our sharp focus on cost efficiencies, as Olivia mentioned. Moving down the income statement. We also successfully reduced net interest expense to only $190,000, well below the year-ago $283,000 as a result of our efforts to reduce debt over the past year. From a GAAP perspective, we reported net income of $2.1 million or $0.19 per share, well above the prior year loss of $1.1 million or $0.10 per share. While first quarter net income benefited from the tariff-related adjustments described, I'll again note that on an adjusted basis, we still generated the first quarter profit versus the prior year quarter's net loss. Turning to our balance sheet. As of June 28, we had total liquidity of $12.1 million, including cash and equivalents and availability on our revolving line of credit. During the first quarter, we significantly reduced our debt from more than $14 million at the start of the fiscal year to just $9.6 million at the end of the quarter. Not only did we reduce outstanding debt, but our net cash from operating activities of $5.5 million served to further support our balance sheet strength, putting us in a strong position to capitalize on future growth opportunities in a disciplined manner. In summary, this was another quarter of strong execution in which we focused on what we can control while economic conditions remain soft. Even adjusted for tariff refunds, we grew revenues, expanded our gross margin and generated stronger earnings per share than in the year ago quarter. We also further strengthened our balance sheet and are well positioned to make progress against our strategic initiatives as we move through the new fiscal year. And now operator, if you could please open the line, Olivia and I will be happy to take questions. Operator: [Operator Instructions] And our first question will come from Doug Ruth with Lenox Financial Services. Douglas Ruth: Olivia and Claire, congratulations, fabulous report. I have several questions. So if you feel like I'm asking too many I mind getting back in the queue. Could you give us -- offer some commentary of what you think is happening with Groovy Girls? Olivia Elliott: So Groovy Girls has done phenomenally well in Canada. And as we look back on history, even when -- before we acquired Manhattan Toy, the first time they launched Groovy Girls, it appears that it took off in Canada first then as well. So we have actually sold so much in Canada at this point in time that we're having to divert inventory that should be coming to the U.S. to go to Canada. So we're really excited about the opportunity there. And then we'll be launching Groovy Girls at K&J in Germany for the European market in September. Douglas Ruth: Okay. Is there a theory of why the Canadians like Groovy Girls so much? Olivia Elliott: We don't know. I can tell you that -- so our distributor, they are partnered with Indigo bookstores, who really put some marketing efforts behind it, and they hosted an event. So that probably helps with it to have such a large partner to launch with. Douglas Ruth: Okay. What about -- you had previously mentioned that ultimately, the Groovy Girls will be on Amazon. Is there like a date that, that might happen? Olivia Elliott: We are still hoping to launch early fall. The inventory having it take off faster than we expected that it may not be the full line, but we're still targeting October sometime with at least part of the line. Douglas Ruth: Okay. Very good. And then could you explain to us what the status is of the tariff money? I think you had told us there was maybe around $5 million, maybe $5.5 million. Are you expecting more money? Or do you think that's it or... Olivia Elliott: We're hoping to get more money. So we had requested reimbursement for $5.6 million to $5.7 million in tariffs. And so far, we've received about $4.7 million, and that is the portion that we booked. Most of that was received in July. A very, very small portion had been received in the first quarter. There's about $900,000 that we still haven't received and we have not booked. Douglas Ruth: Okay. And then how has the balance sheet changed -- or are you able to tell us anything about where the balance sheet is now versus where it was based on maybe tariff money? Olivia Elliott: You mean as of today versus the quarter end? Douglas Ruth: Yes. Olivia Elliott: It certainly improved by getting $4-plus million in cash in, in the month of July, but that's about all we can really tell you. Douglas Ruth: Okay. I didn't realize the $4 million came in, in July. Okay. Very good. Olivia Elliott: So it was booked as other current assets as opposed to a trade receivable at quarter end. Douglas Ruth: I see. So that's the other current asset that's on the balance sheet. Olivia Elliott: Yes. And I think there's more information Claire just pointed out in footnote 4. Douglas Ruth: Footnote 4. Okay. Good. Okay. And then what can you tell us about the warehouse? Olivia Elliott: We'll be starting that project sometime in late fall, early winter. It's about an 18-month process, and the plan is to get -- consolidate sometime in May of 2028. So that process is not quite started yet. Douglas Ruth: And can you provide any additional details about capital expenditures and what you're thinking and how much you might be spending? Olivia Elliott: As of right now, our capital expenditure should just be the normal capital expenditures, which is mainly IT. So it would be any ERP upgrades that we're going through right now, molds for plastic toys. Anything for the warehouse is unlikely to be spent in this fiscal year. It will probably start sometime in the next fiscal year. Douglas Ruth: Okay. All right. And then how about -- the international sales are doing so well. Can you share anything that's happening and why they're doing so well or what you're doing and the kind of stuff? Olivia Elliott: Well, a lot of that's Groovy Girls in Canada, but it's more than that in Canada as well. We had 2 different distributors in Canada previously and starting in this calendar year, maybe a little bit in December of '25, we got a new distributor that is handling both the Manhattan Toy and Sassy product lines and taking that to all channels. So we've seen a pretty good improvement there across the board. Groovy Girls certainly added to it. And then we did starting -- when we went to K&J last fall, we did pick up some new distributors that started buying product maybe later in the fall, early winter. So a little bit in Europe, a little improvement as well. Douglas Ruth: Okay. And then what can you tell us about LEGOLAND? And we know we got that big new facility or I guess it's a year old now in Shanghai. What's happening with LEGOLAND? Olivia Elliott: I don't think there's been any changes with LEGOLAND. That was the last new park of any size. And a lot of the parks for LEGOLAND actually start winding down and closing for the winter. So there are some that are open. I know like Florida and California stay open year-round, but a lot of them closed maybe sometime in October. So those are more seasonal sales than year-round. Douglas Ruth: Okay. And then how about the Manhattan Toy office in Minnesota? Is there any thoughts or update on that at all? Olivia Elliott: That lease expires at the end of March next year. So we will obviously not renew that lease. We're still kind of thinking about what we need, if anything at all, in Minneapolis. If we do get a lease, I mean, there's 2 trains of thought there. We can either let -- it's a very small staff so they can either work from home full time or we may need some small lease that can just hold a few people and some like a photography studio, but we will not be renewing the very expensive lease that we're in right now. Douglas Ruth: Okay. And my last question, is there any new thoughts or ideas on diaper bags and how the company might proceed with that business? Olivia Elliott: We're still working on that product line. I mean we did just start selling the new Motherhood Diaper Bags, very slow start at this point in time, it's only on Amazon, but we're working on that. And then we have a couple of NoJo bags, NoJo branded, one of which is in Walmart, but that's really it right now. But we haven't given up on diaper bags. We're just still working on it. Douglas Ruth: Okay. You just did a fabulous job, and thank you for what you did on behalf of the shareholders. Operator: And this now concludes our question-and-answer session. I would like to turn the floor back over to Olivia Elliott for closing comments. Olivia Elliott: Thank you, operator. And again, we appreciate everyone being on the call. We look forward to building on the early success of Groovy Girls and our other innovative products on the way. We appreciate your continued interest in Crown Crafts, and we'll keep you posted on our progress as we move through the new fiscal year. Please feel free to reach out with any additional questions, and thanks again for being with us. Operator: Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. You may disconnect your lines, and have a wonderful day. 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Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Net sales growth of 8% was primarily driven by improved inventory levels, allowing the company to better meet demand compared to the prior year's tariff-related instability. Adjusted gross margin expanded by 290 basis points to 25.6%, attributed to strategic pricing initiatives and a shift toward a more favorable mix of higher-margin products. The relaunch of the iconic Groovy Girls fashion doll brand exceeded management expectations, showing particular strength in the Canadian market through a new distribution partnership. Management is prioritizing internal product development and relentless spending discipline to sustain recent margin expansion and drive long-term profitability. A strategic decision to rightsize the quarterly dividend was made to provide access to cash flow for debt reduction and growth initiatives while maintaining an approximate 4% yield. Operational efficiency efforts include a planned consolidation of warehouse operations over the next two years to enhance the overall operating structure. The company plans to launch the Groovy Girls line at K&J in Germany this September to target the European market, following strong initial results in North America. A warehouse consolidation project is scheduled to begin in late fall or early winter, with a target completion date of May 2028 to improve long-term efficiency. Management expects to launch at least part of the Groovy Girls line on Amazon by October, though inventory may be limited due to higher-than-expected initial demand. Capital expenditures for the current fiscal year will focus on IT upgrades, ERP systems, and plastic toy molds, with warehouse-related spending deferred to the next fiscal year. The company will exit its expensive Minneapolis office lease in March 2027, evaluating a transition to a remote work model or a significantly smaller studio space. Reported net income was significantly impacted by $3.7 million in tariff refunds, which reduced the cost of products sold during the quarter. Management has requested a total of $5.6 million to $5.7 million in tariff reimbursements, with approximately $900,000 still pending and unbooked as of the quarter end. Debt was reduced from over $14 million to $9.6 million during the quarter, further bolstered by $4.7 million in tariff cash received in July. Marketing and administrative expenses included $0.5 million in accrued incentive compensation directly tied to the successful recovery of tariff refunds. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. The brand has performed exceptionally well in Canada, leading the company to divert U.S.-bound inventory to satisfy Canadian demand. Success was attributed to a new distributor partnership with Indigo bookstores, which provided significant marketing support and launch events. The company has received approximately $4.7 million of its $5.6 million to $5.7 million claim, with the majority of cash arriving in July. The remaining $900,000 has not yet been booked on the balance sheet as the company awaits further reimbursement. Growth in international markets is driven by a new distributor in Canada handling both Manhattan Toy and Sassy lines across all channels. New European distributors were secured following the K&J trade show, contributing to improved sales in the fall and winter periods. Management acknowledged a slow start for the new Motherhood Diaper Bags on Amazon but remains committed to the category. Current efforts are focused on the Motherhood line and specific NoJo branded bags currently placed in Walmart.

GONZALES, La., Aug. 12, 2026 (GLOBE NEWSWIRE) -- Crown Crafts, Inc. (NASDAQ-CM: CRWS) (the “Company”) a producer, designer, and distributor of infant, toddler, and juvenile consumer products, today reported results for the first quarter fiscal year 2027, which ended June 28, 2026. First Quarter Fiscal 2027 Summary Net sales of $16.8 million increased from $15.5 million in the prior-year quarter Gross profit margin increased to 47.9% from 22.7% in the prior-year quarter, reflecting tariff refunds recorded in the first quarter of 2027. Adjusted for tariff refunds, gross profit margin would have been 25.6%, up 290 basis points year over year Net income of $2.1 million, or $0.19 per share, increased from a net loss of $1.1 million, or $0.10 per share, in the prior-year quarter Declared a quarterly dividend of $0.03 per share on Series A common stock “Our new fiscal year is off to a solid start with year-over-year growth, expansion of our gross margin, and positive net income, even when adjusting for tariff refunds net of related expenses,” said Olivia Elliott, President and Chief Executive Officer. “Our team is energized and while industry conditions remain soft, we’re encouraged by our top line growth, and in particular a strong international reception for Groovy Girls with sales exceeding our expectations. This is just one of our many exciting products that provide us with optimism over our future sales outlook. Until conditions normalize, we’re focused on strategic pricing, driving a favorable mix of higher-margin products, and continued spending discipline. To help us execute on our growth opportunities, debt reduction and warehouse consolidation over the next two years, our Board right-sized our quarterly dividend to $0.03 per share which will free up meaningful funding for these initiatives that will drive future profitability. We enter the new fiscal year well positioned to drive growth and profitability through creative product development and the ongoing tremendous efforts of our entire team.” First Quarter Fiscal 2027 ResultsNet sales increased to $16.8 million for the three-month period ended June 28, 2026, up from $15.5 million for the three-month period ended June 29, 2025. Gross profit was $8.0 million, up from $3.5 million in the prior-year period, benefitting from $3.7 million in tariff refunds recorded to cost of products sold during the current period. Without tariff refunds, gross margin on net sales was 25.6% which improved by 290 basis points year over year. Marketing and administrative expenses of $5.2 million compare to $4.7 million in the year-earlier period reflecting an increase in accrued incentive compensation associated with tariff refunds of $529 thousand as compared to the prior year. Net income improved to $2.1 million, or $0.19 per diluted share, up from a net loss of $1.1 million, or $0.10 per diluted share in the prior-year first quarter. Quarterly Cash DividendThe Board of Directors declared a quarterly cash dividend on the Company’s Series A common stock of $0.03 per share, which will be paid on October 2, 2026 to stockholders of record at the close of business on September 11, 2026. Conference CallThe Company will host a teleconference today at 4:00 p.m. CT to discuss results. Interested individuals may join the teleconference by dialing (844) 539-3703 or (412) 652-1273 and asking to join the Crown Crafts, Inc. call. 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 on the investor relations portion of the Company’s website after earnings are released. A telephone replay of the teleconference will be available three hours after the call through August 26, 2026. To access the replay, dial (844) 512-2921 in the United States or (412) 317-6671 from international locations and enter replay access code 13761760. About Crown Crafts, Inc.Founded in 1957, Crown Crafts, Inc. designs, markets, and distributes infant, toddler, and juvenile consumer products including infant bedding, toddler bedding, diaper bags, bibs, toys, and disposable products. The Company primarily operates through its wholly owned subsidiaries, NoJo Baby & Kids, Inc. and Sassy Baby, Inc., which market a variety of infant, toddler, and juvenile products under Company-owned trademarks (Sassy®, NoJo®, Manhattan Toy®, Baby Boom® and Neat Solutions®), as well as licensed collections and exclusive private label programs. Sales are made directly to retailers such as mass merchants, large chain stores, juvenile specialty stores, value channel stores, grocery and drug stores, restaurants, wholesale clubs, internet-based retailers and direct-to-consumers through the Company’s websites. For more information, visit www.crowncrafts.com. Forward-Looking StatementsThe foregoing 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 the impact of increased U.S. tariffs and any retaliatory measures by impacted exporting countries, the Company’s ability to mitigate the impact of such tariffs, 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, changes in the retail environment, the Company’s ability to successfully integrate newly acquired businesses, the level and pricing of future orders from the Company’s customers, the extent to which the Company’s business is concentrated in a small number of customers, the Company’s dependence upon third-party suppliers, including some located in foreign countries, customer acceptance of both new designs and newly-introduced product lines, actions of competitors that may impact the Company’s business, disruptions to transportation systems or shipping lanes used by the Company or its suppliers, and the Company’s dependence upon licenses from third parties. Reference is also made to the Company’s periodic filings with the Securities and Exchange Commission for additional factors that may impact the Company’s results of operations and financial condition. The Company does not undertake to update the forward-looking statements contained herein to conform to actual results or changes in our expectations, whether as a result of new information, future events or otherwise. Contact:Claire SpencerVice President and Chief Financial Officer [email protected]

Shares of Crown Crafts, Inc. CRWS have gained 1.4% since the company reported results for the quarter ended March 29, 2026, outperforming the S&P 500 Index, which declined 0.4% over the same period. Over the past month, however, the stock slipped 1.4%, although it still fared better than the broader market, as the S&P 500 fell 3.7%. Crown Crafts reported fourth-quarter fiscal 2026 net sales of $22.4 million, down 3.7% from $23.2 million in the year-ago quarter. Net income improved to $0.3 million, or $0.03 per diluted share, from a net loss of $10.8 million, or $1.04 per diluted share, a year earlier, when results were weighed down by a $13.8 million non-cash goodwill impairment charge. Gross profit increased 20.8% to $5.1 million from $4.2 million, while gross margin expanded 460 basis points to 22.9% from 18.3%. CRWS did not report quarterly segment results. For fiscal 2026, Crown Crafts reported net sales of $82.3 million, down 5.7% from $87.3 million in fiscal 2025, reflecting a 14.8% decline in bedding and diaper bag sales. This was partially offset by a 2.4% increase in bibs, toys and disposable products. CRWS returned to profitability with net income of $1.8 million, or $0.17 per diluted share, from a net loss of $9.4 million, or $0.90 per diluted share, in fiscal 2025. Gross profit declined 5.6% to $20.1 million, although the gross margin remained unchanged at 24.4%. Marketing and administrative expenses remained essentially unchanged at $4.6 million in fourth-quarter fiscal 2026 despite inflationary pressures, reflecting continued cost discipline. Interest expense declined 41.7% to $194,000 from $333,000 in the prior-year quarter as debt levels were reduced. At fiscal year-end, inventories totaled $28.4 million, up slightly from $27.8 million a year earlier, while total debt fell to $14.1 million from $18.5 million. Crown Crafts ended fiscal 2026 with total assets of $70.7 million. CRWS ended the year with $12.5 million of available capacity under its revolving credit facility and generated $8.3 million in operating cash flow during fiscal 2026. The board also declared a quarterly cash dividend of $0.08 per share. Crown Crafts, Inc. price-consensus-eps-surprise-chart | Crown Crafts, Inc. Quote Management said that Crown Crafts delivered a solid quarterly performance despite persistent macroeconomic challenges, including global conflicts, tariff volatility, elevated fuel prices and continued inflation that pressured consumer spending. President and chief executive officer Olivia Elliott highlighted the February relaunch of Manhattan Toy's Groovy Girls brand, describing the initial response from specialty retailers as encouraging following its commercial rollout in May. Management also reiterated its focus on expanding margins through internal product development, operating efficiencies and disciplined capital allocation while continuing to return capital to shareholders through dividends. Executives attributed the fiscal 2026 sales decline primarily to fewer items included in programs at a major retailer and inventory shortages stemming from CRWS’ strategy to minimize the impact of higher tariffs during the early part of the fiscal year. The improvement in profitability was driven primarily by strategic pricing initiatives and a more favorable sales mix of higher-margin products, which lifted gross margin by 460 basis points. Executives noted that price increases implemented to offset tariffs were fully reflected during the fiscal fourth quarter after taking effect progressively through the fiscal year. Lower interest expense resulting from debt reduction also supported earnings. Management added that inventory levels increased modestly, largely because tariffs were capitalized into inventory costs and to support the Groovy Girls launch. During the earnings call, management also pointed to progress in international markets, attributing improved overseas sales to the consolidation of Manhattan Toy and Sassy distribution networks and the appointment of a new Canadian distributor. CRWS also cited shipments to the newly opened LEGOLAND Shanghai attraction as contributing to international growth. Meanwhile, diaper bags remained under pressure due to tariff-related cost increases and reduced shelf space at major retailers, prompting efforts to redesign and reposition the product category. Crown Crafts did not provide formal financial guidance for fiscal 2027. Management expressed confidence in the company's competitive positioning, citing its portfolio of brands, retail partnerships, financial strength and ongoing investments in product innovation and marketing. Executives said that they expect continued focus on cost controls, operating leverage and internal efficiency initiatives while seeking to capitalize on any recovery in consumer demand. Management also said that gross margins have additional room for expansion over time as sales improve and operating leverage increases. Subsequent to the quarter, Crown Crafts officially relaunched the Manhattan Toy Groovy Girls brand, with initial distribution through specialty retailers and broader availability planned through Amazon and international markets later in the year. CRWS also disclosed ongoing efforts to optimize its real estate footprint, including extending the lease on its Eden Valley warehouse to align with its Compton facility and evaluating a future consolidated warehouse location. In addition, management confirmed it has applied for refunds related to previously imposed U.S. tariffs on Chinese imports and has already received approximately $175,000, while seeking recovery of a substantially larger amount. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Crown Crafts, Inc. (CRWS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Crown Crafts, Inc. (NASDAQ:CRWS) reported a return to profitability in the fourth quarter of fiscal 2026, supported by stronger margins and disciplined cost management, even as revenue declined from the prior-year period. Shares of the company rose 0.36% in premarket trading following the earnings announcement. For the quarter ended March 29, 2026, Crown Crafts posted net income of $0.3 million, or $0.03 per diluted share. That compares with a net loss of $10.8 million, or $1.04 per diluted share, recorded in the same quarter a year earlier. The prior-year result was heavily impacted by a non-cash goodwill impairment charge totaling $13.8 million. Quarterly revenue came in at $22.4 million, representing a 3.4% decline from $23.2 million reported in the comparable period of fiscal 2025. Despite the lower sales figure, the company continued to navigate a difficult operating environment while maintaining profitability. Management noted that demand conditions remained challenging throughout the period. One of the strongest aspects of the quarter was a substantial improvement in profitability at the gross margin level. Gross profit margin increased to 22.9%, compared with 18.3% in the prior-year quarter, representing an expansion of 460 basis points. The company attributed the improvement to strategic pricing initiatives, a more favorable sales mix that included a higher proportion of premium-margin products, and continued discipline in managing expenses. Marketing and administrative expenses were unchanged from the previous year at $4.6 million. The stable cost base helped support earnings growth despite the decline in revenue and reflected management’s continued focus on operational efficiency. President and Chief Executive Officer Olivia Elliott emphasized the company’s progress during the year. “We completed our fiscal year with another quarter of solid results reflecting the strength of our many exciting brands and the hard work of our talented team,” said Olivia Elliott, President and Chief Executive Officer. “We drove improved gross margins and generated more than $8 million of operating cash flow during the fiscal year, through strategic pricing, a more favorable mix of higher-margin products, and ongoing spending discipline, while the operating environment continued to be challenging.” For fiscal 2026, Crown Crafts reported net income of $1.8 million, or $0.17 per diluted share. That compares with a net loss of $9.4 million, or $0.90 per diluted share, in fiscal 2025. Annual revenue totaled $82.3 million, down from $87.3 million in the prior year, reflecting continued pressure on sales despite the improvement in profitability. The company’s Board of Directors declared a quarterly cash dividend of $0.08 per share on its Series A common stock. The dividend is scheduled to be paid on July 2, 2026, to shareholders of record as of June 11, 2026. The dividend declaration signals management’s confidence in the company’s financial position and cash generation capabilities despite ongoing market challenges. Crown Crafts stock price

This article first appeared on GuruFocus. Net Sales: $22.4 million for the fourth quarter, compared to $23.2 million in the prior-year quarter. Full-Year Net Sales: Over $80 million. Gross Margin: Improved to 22.9% in the fourth quarter, up from 18.3% in the prior-year period. Net Income: $280,000 for the fourth quarter, compared to a loss of approximately $11 million in the prior-year quarter. Earnings Per Share: $0.03, up from a loss of $1.04 per share in the prior year. Operating Cash Flow: More than $8 million for the fiscal year. Interest Expense: Reduced to $194,000 for the fourth quarter, down from $333,000 a year earlier. Total Assets: $70.7 million at fiscal year-end. Inventories: $28.4 million as of March 29, up from $27.8 million at the end of fiscal 2025. Total Debt: Reduced to $14.1 million at year-end, from $18.5 million at the end of fiscal 2025. Undrawn Credit Availability: $12.5 million on revolving credit facilities. Warning! GuruFocus has detected 10 Warning Signs with CRWS. Is CRWS fairly valued? Test your thesis with our free DCF calculator. Release Date: June 24, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Crown Crafts Inc (NASDAQ:CRWS) maintained net sales at $22 million for the quarter, despite challenging economic conditions. The company achieved a significant improvement in gross margin, reaching nearly 23%, up 460 basis points from the previous year. Operating cash flow exceeded $8 million for the fiscal year, demonstrating strong financial management. The relaunch of Manhattan Toys Groovy Girls has been well-received, tapping into the retro-inspired consumer market. Crown Crafts Inc (NASDAQ:CRWS) successfully reduced interest expenses due to a significant reduction in debt. Net sales for the fourth quarter were slightly down from $23.2 million in the previous year, indicating a decline in consumer spending. The company faces ongoing challenges from global conflicts, fluctuating tariffs, and high inflation impacting the American consumer. Higher inventory levels were noted, partly due to the capitalization of tariffs into inventory costs. The diaper bag business has been negatively impacted by tariffs and reduced space at major retailers like Walmart. The company is facing potential challenges with real estate, as it plans to move from its current facilities due to lease expirations. Q: Can you provide an update on your relationships with major retailers like Walmart and Target, and are you pursuing other retail partnerships? A: Olivia Elliott, President, CEO, and Director: Our relationships with Walmart and Target remain strong, with regular communication through our sales team and trade shows. We are always exploring new retail partnerships, including international opportunities, although few are as large as Walmart, Target, and Amazon. Q: Could you elaborate on the Groovy Girls relaunch and its impact on inventory levels? A: Olivia Elliott, President, CEO, and Director: The higher inventory levels are partly due to the Groovy Girls relaunch and the capitalization of tariffs into inventory costs. We began shipping to specialty stores in May, with plans to expand to Amazon and international markets in the fall. Sales have been promising, and we are optimistic about future growth. Q: What is the status of the tariff refunds, and how are they impacting your financials? A: Olivia Elliott, President, CEO, and Director: We have applied for a tariff refund and received about $175,000 so far. We requested approximately $5.5 million and remain hopeful for further refunds, which would positively impact our financials. Q: How is the Stella doll performing after its redesign, and what are your plans for the diaper bag business? A: Olivia Elliott, President, CEO, and Director: The Stella doll is performing well, primarily in specialty stores and online. The diaper bag business faced challenges due to tariffs and reduced retail space. We are currently redeveloping our approach to this product line. Q: Can you discuss your advertising strategy and its effectiveness? A: Olivia Elliott, President, CEO, and Director: We have increased our advertising budget and expanded our marketing team to enhance photography, social media, and advertising efforts. While still in the early stages, we are pleased with the progress and results so far. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

GONZALES, La., June 24, 2026 (GLOBE NEWSWIRE) -- Crown Crafts, Inc. (NASDAQ-CM: CRWS) (the “Company”) a producer, designer, and distributor of infant, toddler, and juvenile consumer products, today reported results for the fourth quarter and full year fiscal 2026, which ended March 29, 2026. Fourth Quarter Fiscal 2026 Summary Net sales of $22.4 million compared to $23.2 million in the prior-year quarter Gross profit margin increased to 22.9% compared to 18.3% in the prior-year quarter Net income of $0.3 million increased from a net loss of $10.8 million in the prior-year quarter Subsequent to the quarter, relaunched Manhattan Toy brand’s Groovy Girls, an iconic line of soft fashion dolls Declared a quarterly dividend of $0.08 per share on Series A common stock “We completed our fiscal year with another quarter of solid results reflecting the strength of our many exciting brands and the hard work of our talented team,” said Olivia Elliott, President and Chief Executive Officer. “We drove improved gross margins and generated more than $8 million of operating cash flow during the fiscal year, through strategic pricing, a more favorable mix of higher-margin products, and ongoing spending discipline, while the operating environment continued to be challenging. In May, we successfully relaunched Manhattan Toy’s Groovy Girls which reflects our ongoing internal focus on new product development. Looking ahead to the new fiscal year, we’re confident in our positioning and ability to capitalize on any improvement in consumer demand, and we will continue our efforts with respect to creative product development and internal efficiencies as we seek to further enhance long-term stockholder value.” Fourth Quarter Fiscal 2026 Results Net sales were $22.4 million for the three-month period ended March 29, 2026, compared to $23.2 million for the three-month period ended March 30, 2025. Gross profit was $5.1 million, up from $4.2 million in the prior-year period, reflecting a gross margin on net sales of 22.9% which improved by 460 basis points from 18.3% for the same period in fiscal 2025. Marketing and administrative expense was held approximately flat relative to the prior-year fourth quarter at $4.6 million, and net income improved to $0.3 million, or $0.03 per diluted share, up from a net loss of $10.8 million, or $1.04 per diluted share in the prior-year fourth quarter, which had included a non-cash goodwill impairment charge of $13.8 million. Quarterly Cash Dividend The Board of Directors declared a quarterly cash dividend on the Company’s Series A common stock of $0.08 per share, which will be paid on July 2, 2026 to stockholders of record at the close of business on June 11, 2026. Conference Call The Company will host a teleconference today at 8:00 a.m. CT to discuss results. Interested individuals may join the teleconference by dialing (844) 539-3703 or (412) 652-1273 and asking to join the Crown Crafts, Inc. call. 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 on the investor relations portion of the Company’s website after earnings are released. A telephone replay of the teleconference will be available one hour after the call through July 8, 2026. To access the replay, dial (844) 512-2921 in the United States or (412) 317-6671 from international locations and enter replay access code 13760859. About Crown Crafts, Inc. Founded in 1957, Crown Crafts, Inc. designs, markets, and distributes infant, toddler, and juvenile consumer products including infant bedding, toddler bedding, diaper bags, bibs, toys, and disposable products. The Company primarily operates through its wholly owned subsidiaries, NoJo Baby & Kids, Inc. and Sassy Baby, Inc., which market a variety of infant, toddler, and juvenile products under Company-owned trademarks (Sassy®, NoJo®, Manhattan Toy®, Baby Boom® and Neat Solutions®), as well as licensed collections and exclusive private label programs. Sales are made directly to retailers such as mass merchants, large chain stores, juvenile specialty stores, value channel stores, grocery and drug stores, restaurants, wholesale clubs, internet-based retailers and direct-to-consumers through the Company’s websites. For more information, visit www.crowncrafts.com. Forward-Looking Statements The foregoing 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 the impact of increased U.S. tariffs and any retaliatory measures by impacted exporting countries, the Company’s ability to mitigate the impact of such tariffs, 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, changes in the retail environment, the Company’s ability to successfully integrate newly acquired businesses, the level and pricing of future orders from the Company’s customers, the extent to which the Company’s business is concentrated in a small number of customers, the Company’s dependence upon third-party suppliers, including some located in foreign countries, customer acceptance of both new designs and newly-introduced product lines, actions of competitors that may impact the Company’s business, disruptions to transportation systems or shipping lanes used by the Company or its suppliers, and the Company’s dependence upon licenses from third parties. Reference is also made to the Company’s periodic filings with the Securities and Exchange Commission for additional factors that may impact the Company’s results of operations and financial condition. The Company does not undertake to update the forward-looking statements contained herein to conform to actual results or changes in our expectations, whether as a result of new information, future events or otherwise. Contact:Claire SpencerVice President and Chief Financial Officer [email protected]