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

Crown Crafts (NASDAQ:CRWS) released its earnings results on Thursday. The textile maker reported $0.12 EPS for the quarter, missing the consensus estimate 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 firm had revenue of $19.03 million during 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 trading on Thursday, hitting $2.43. The company’s stock had a trading volume of 96,302 shares, compared to its average volume of 52,131. The company has a 50-day moving average of $2.50 and a 200-day moving average of $2.77. 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 has a market cap of $26.15 million, a price-to-earnings ratio of 5.17 and a beta of 0.68.

Analysts Set New Price Targets

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