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Crown Crafts (CRWS)
NASDAQ:CRWS
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Crown Crafts (CRWS) AI Stock Analysis

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CRWS

Crown Crafts

(NASDAQ:CRWS)

Rating:53Neutral
Price Target:
$3.00
▼(-0.66% Downside)
Crown Crafts faces significant financial challenges, with declining revenue and profitability being the most impactful factors. The technical analysis suggests potential for short-term gains, but the overall trend remains bearish. The high dividend yield offers some appeal, but the negative P/E ratio highlights ongoing financial difficulties. Strategic expansions provide some optimism, but are currently overshadowed by operational challenges.

Crown Crafts (CRWS) vs. SPDR S&P 500 ETF (SPY)

Crown Crafts Business Overview & Revenue Model

Company DescriptionCrown Crafts, Inc., through its subsidiaries, operates in the consumer products industry in the United States and internationally. It provides infant, toddler, and juvenile products, including infant and toddler beddings; blankets and swaddle blankets; nursery and toddler accessories; room décors; reusable and disposable bibs; burp cloths; hooded bath towels and washcloths; reusable and disposable placemats, and floor mats; disposable toilet seat covers and changing mats; developmental toys; feeding and care goods; and other infant, toddler, and juvenile soft goods. The company sells its products primarily to mass merchants, large chain stores, mid-tier retailers, juvenile specialty stores, value channel stores, grocery and drug stores, restaurants, internet accounts, wholesale clubs and internet-based retailers through a network of sales force and independent commissioned sales representatives. Crown Crafts, Inc. was incorporated in 1957 and is headquartered in Gonzales, Louisiana.
How the Company Makes MoneyCrown Crafts makes money through the sale of its infant and toddler products, which are distributed via major retail channels, including big-box stores, specialty shops, and online platforms. The company's revenue model relies heavily on its strong relationships with key retailers, which ensure wide distribution and visibility of its products. Additionally, Crown Crafts benefits from licensing agreements with well-known brands and characters, which enhance the appeal and marketability of its product lines. The company's earnings are further supported by its focus on operational efficiency and cost control, which help maintain profitability in a competitive industry.

Crown Crafts Earnings Call Summary

Earnings Call Date:Aug 13, 2025
(Q1-2026)
|
% Change Since: |
Next Earnings Date:Nov 18, 2025
Earnings Call Sentiment Neutral
The earnings call presented a challenging quarter for Crown Crafts, marked by a decrease in net sales and a net loss due to increased tariffs and inventory shortages. However, there were several positive developments, including the extension of the Disney license agreement, encouraging sales figures in July, and the continuation of shareholder dividends. Overall, while the company faces significant challenges, there are also promising opportunities and initiatives underway.
Q1-2026 Updates
Positive Updates
Disney License Agreement Extension
Crown Crafts has extended its license agreement with Disney, which now includes sales in Canada and diaper bags as licensed products.
Positive Sales Outlook
Encouraging sales numbers for July with cautious optimism for the rest of the fiscal year.
Baby Boom Acquisition
Increase in sales of bedding and diaper bags due to the Baby Boom acquisition.
Dividend Declaration
Declared an $0.08 per share cash dividend to shareholders, continuing a long history of returning value to shareholders.
Plush Figure Sales in Shanghai LEGOLAND
Initial sales exceeded expectations with a reorder placed for plush figures in Shanghai LEGOLAND.
Negative Updates
Decrease in Net Sales
First quarter net sales were $15.5 million, a 4.5% decrease compared to the first quarter of fiscal year 2025.
Increased Tariff Costs
Gross profit decreased by $448,000 primarily due to increased tariff costs associated with products imported from China.
Net Loss for the Quarter
GAAP net loss for the first quarter was $1.1 million or a $0.10 loss per diluted share, driven by the impact of increased tariffs and inventory shortages.
Increased Marketing and Administrative Expenses
Marketing and administrative expenses increased by $454,000, associated with the Baby Boom acquisition and increased advertising costs.
Cash and Cash Equivalents Decrease
Cash and cash equivalents totaled $227,000 compared to $521,000 at the end of fiscal 2025.
Company Guidance
During the Crown Crafts, Inc. fiscal year 2026 first quarter conference call, the guidance highlighted several key financial metrics and strategic efforts. The company reported a 4.5% decrease in net sales to $15.5 million, primarily due to inventory shortages and high tariffs, despite increased sales in bedding and diaper bags following the Baby Boom acquisition. Gross profit dropped by $448,000, with a margin decrease from 24.5% to 22.7% of net sales, largely due to increased tariff costs. Marketing and administrative expenses rose by $454,000, representing 30.5% of net sales, driven by acquisition-related costs and heightened advertising efforts. The company recorded a net loss of $1.1 million, or $0.10 per diluted share. Despite these challenges, Crown Crafts maintained a solid balance sheet, with inventories rising by 13.6% to $31.6 million, cash and cash equivalents totaling $227,000, and $12.2 million available under its revolving line of credit. Additionally, the company declared an $0.08 per share cash dividend, emphasizing its commitment to shareholder returns. The call also focused on strategic initiatives, such as expanding licensed product offerings with Disney and exploring new market opportunities, despite an uncertain tariff environment.

Crown Crafts Financial Statement Overview

Summary
Crown Crafts faces significant profitability challenges, with negative EBIT and net income. The balance sheet shows a strong equity base, but increasing debt levels are concerning. Cash flow remains efficient, indicating robust cash management despite operational difficulties.
Income Statement
45
Neutral
The income statement reflects a challenging period for Crown Crafts. The TTM data shows a significant decline in profitability with a negative EBIT and net income, indicating operational difficulties. The gross profit margin has decreased, and revenue has shown a slight decline compared to the previous year. These factors highlight the need for operational restructuring to return to profitability.
Balance Sheet
60
Neutral
Crown Crafts maintains a strong equity base, as shown by the favorable debt-to-equity ratio. However, the increase in total debt and liabilities over recent periods raises concerns about potential financial leverage risks. Despite these concerns, the company still shows a robust equity position relative to its total assets.
Cash Flow
70
Positive
The cash flow statement presents a positive outlook with strong operating cash flow, which exceeds net income, indicating efficient cash management. The free cash flow has improved, demonstrating the company's ability to generate cash even during challenging times. However, consistent cash outflows in investing activities should be monitored.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue86.52M87.25M87.63M75.05M87.36M79.16M
Gross Profit20.82M20.49M23.00M19.83M23.31M24.10M
EBITDA-5.53M-4.76M13.10M8.88M15.64M13.30M
Net Income-10.14M-9.36M4.89M5.65M9.92M6.08M
Balance Sheet
Total Assets76.02M81.15M82.71M90.97M60.16M58.08M
Cash, Cash Equivalents and Short-Term Investments227.00K521.00K829.00K1.74M1.60M613.00K
Total Debt26.02M31.60M23.84M29.99M2.64M6.41M
Total Liabilities38.15M41.53M31.11M41.76M14.35M16.22M
Stockholders Equity37.87M39.62M51.60M49.21M45.80M41.87M
Cash Flow
Free Cash Flow6.38M9.75M6.30M6.92M7.73M8.01M
Operating Cash Flow7.06M9.82M7.08M7.74M8.26M8.74M
Investing Cash Flow-16.97M-17.17M-193.00K-16.91M-490.00K-733.00K
Financing Cash Flow9.04M7.04M-7.80M9.32M-6.79M-7.67M

Crown Crafts Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price3.02
Price Trends
50DMA
2.91
Positive
100DMA
2.96
Positive
200DMA
3.51
Negative
Market Momentum
MACD
0.04
Negative
RSI
56.87
Neutral
STOCH
32.97
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRWS, the sentiment is Neutral. The current price of 3.02 is above the 20-day moving average (MA) of 2.95, above the 50-day MA of 2.91, and below the 200-day MA of 3.51, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 56.87 is Neutral, neither overbought nor oversold. The STOCH value of 32.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CRWS.

Crown Crafts Risk Analysis

Crown Crafts disclosed 21 risk factors in its most recent earnings report. Crown Crafts reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Crown Crafts Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$17.59B13.29-4.88%3.05%1.25%-14.67%
53
Neutral
$31.70M13.58-22.90%10.60%-0.24%-336.30%
52
Neutral
$89.50M-17.08%4.05%-1.14%-95.76%
51
Neutral
$107.24M-5.55%9.18%-3.89%-391.05%
51
Neutral
$125.75M-331.75%-13.19%20.95%
47
Neutral
$33.81M-30.18%-5.41%-21.60%
42
Neutral
$24.44M-126.29%-0.01%77.86%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CRWS
Crown Crafts
3.02
-1.35
-30.89%
HOFT
Hooker Furniture
10.18
-4.30
-29.70%
LCUT
Lifetime Brands
4.10
-2.40
-36.92%
NTZ
Natuzzi SPA
3.07
-1.16
-27.42%
PRPL
Purple Innovation
1.09
0.00
0.00%
NVFY
Nova Lifestyle
2.31
0.93
67.39%

Crown Crafts Corporate Events

Executive/Board ChangesShareholder MeetingsDividendsFinancial Disclosures
Crown Crafts Reports Q1 Fiscal 2026 Results
Negative
Aug 13, 2025

On August 12, 2025, Crown Crafts held its Annual Meeting of Stockholders, where Olivia W. Elliott was elected as a Class I director, executive compensation was approved, KPMG LLP’s appointment as the independent auditor was ratified, and a triennial advisory vote on executive compensation was recommended. The company reported first-quarter fiscal 2026 results with net sales of $15.5 million, a decrease from the previous year, and a net loss of $1.10 million, reflecting the impact of increased tariffs. Despite these challenges, the Baby Boom acquisition contributed $2.1 million in sales, and the company declared a quarterly dividend of $0.08 per share.

Executive/Board Changes
Crown Crafts Appoints Claire Spencer as New CFO
Neutral
Jun 16, 2025

Crown Crafts, Inc. has announced the retirement of its Chief Financial Officer, Craig J. Demarest, effective June 30, 2025. Claire K. Spencer has been appointed as the new CFO, Secretary, and principal financial and accounting officer, effective the same date. Spencer brings extensive experience from her previous roles at H&E Equipment Services, Inc. and HRI Properties, LLC. Her employment agreement includes a base salary of $250,000, eligibility for bonuses, and stock awards, with provisions for severance and restrictive covenants.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 19, 2025