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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)

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Neutral 45 (OpenAI - 4o)
Rating:45Neutral
Price Target:
$2.50
▼(-8.42% Downside)
Crown Crafts' overall stock score is primarily impacted by its financial struggles and weak technical indicators. The high dividend yield offers some appeal, but the negative P/E ratio and bearish technical signals reflect ongoing challenges. The company's historical performance and strategic efforts suggest potential for recovery, but current conditions require caution.

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 generates revenue through multiple channels, primarily by selling its products to retailers and wholesalers. The company's core revenue streams include direct product sales of infant bedding, bath items, and other nursery accessories. Additionally, Crown Crafts often engages in partnerships with major retailers, which can enhance its distribution capabilities and market reach. The company also benefits from brand loyalty and recognition in the parenting segment, which drives repeat purchases. Seasonal product lines and collaborations with popular brands or franchises can also contribute to increased sales, particularly during key retail seasons.

Crown Crafts Earnings Call Summary

Earnings Call Date:Nov 12, 2025
(Q2-2026)
|
% Change Since: |
Next Earnings Date:Feb 18, 2026
Earnings Call Sentiment Neutral
The earnings call reflects a balanced view. While the company has managed to increase net income and reduce costs, challenges remain with declining sales in some product categories and the impact of tariffs on profitability. International sales and cost management efforts provide a positive outlook.
Q2-2026 Updates
Positive Updates
Increased Net Income
Second quarter net income increased to $1.2 million or $0.11 per diluted share, up from $0.08 in the year-ago quarter, primarily due to reduced marketing and administrative expenses.
Strong Performance in Bibs, Toys, and Disposable Products
Sales in bibs, toys, and disposable products increased by $800,000, partially offsetting declines in other areas.
Successful Cost Management
Marketing and administrative expenses reduced by $740,000 to 19.9% of net sales for the quarter, down from 22.3% in the prior year period.
Solid Cash Flow and Balance Sheet
Cash and cash equivalents increased to $810,000 from $521,000 at the end of fiscal 2025, with $13.7 million available under the revolving line of credit.
Positive International Sales Growth
International sales, particularly for the Sassy and Manhattan Toy brands, showed significant growth with new distributors in Europe.
Negative Updates
Decline in Bedding and Diaper Bags Sales
Sales in bedding and diaper bags declined by $1.6 million due to a decrease in the number of items included in a major retailer's program.
Impact of Tariffs on Gross Profit Margins
Gross profit margins decreased to 27.7% from 28.4% due to increased tariff costs associated with products imported from China.
Struggles with Diaper Bag Costs
The diaper bag category continues to struggle due to high tariff costs, requiring a shift in production from China to other countries.
Company Guidance
During the Fiscal Year 2026 Second Quarter Conference Call, Crown Crafts reported various financial metrics and operational strategies. Net sales for the quarter were $23.7 million, down from $24.5 million in the same period of the previous year, primarily due to a $1.6 million decline in bedding and diaper bag sales, although partially offset by an $800,000 increase in the sales of bibs, toys, and disposable products. The gross profit was $6.6 million, with a margin of 27.7%, slightly lower than the previous year's 28.4%, largely due to increased tariff costs on imports from China. Marketing and administrative expenses were reduced by $740,000 to 19.9% of net sales. The company reported a GAAP net income of $1.2 million, or $0.11 per diluted share, up from $0.08 in the prior year, attributed to reduced expenses. As of the quarter's end, cash and cash equivalents increased to $810,000, with an inventory balance of $32.6 million. The company held $16.3 million in debt, with $13.7 million available under its revolving credit line. Additionally, Crown Crafts declared an $0.08 per share quarterly dividend. The leadership highlighted ongoing efforts to navigate tariff impacts, consolidate operations for cost savings, and leverage strong supplier and customer relationships for future growth.

Crown Crafts Financial Statement Overview

Summary
Crown Crafts is facing financial challenges with declining revenue and profitability. The balance sheet shows manageable leverage but negative returns on equity. Cash flow metrics indicate some resilience, though growth has been negative recently. Historical performance suggests potential for recovery.
Income Statement
45
Neutral
Crown Crafts has experienced a significant decline in revenue and profitability in the TTM period. The gross profit margin and net profit margin have both decreased, indicating challenges in maintaining profitability. The negative revenue growth rate and declining EBIT and EBITDA margins highlight operational difficulties. However, historical data shows periods of positive growth and profitability, suggesting potential for recovery.
Balance Sheet
55
Neutral
The company's balance sheet shows a moderate debt-to-equity ratio, indicating manageable leverage levels. However, the negative return on equity in the TTM period is concerning, reflecting recent financial struggles. The equity ratio remains stable, suggesting a solid asset base. Historical data shows stronger equity returns, indicating potential for improvement.
Cash Flow
50
Neutral
Crown Crafts has faced a decline in free cash flow growth in the TTM period, but maintains a reasonable operating cash flow to net income ratio. The free cash flow to net income ratio is strong, suggesting efficient cash generation relative to net income. Historical cash flow performance has been more stable, indicating potential for future recovery.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue86.52M87.25M87.63M75.05M87.36M79.16M
Gross Profit20.82M20.49M23.00M19.83M23.31M24.10M
EBITDA5.24M-4.76M8.68M8.63M11.81M13.30M
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
Negative
Last Price2.73
Price Trends
50DMA
2.85
Negative
100DMA
2.85
Negative
200DMA
3.04
Negative
Market Momentum
MACD
-0.05
Positive
RSI
44.56
Neutral
STOCH
53.24
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRWS, the sentiment is Negative. The current price of 2.73 is below the 20-day moving average (MA) of 2.79, below the 50-day MA of 2.85, and below the 200-day MA of 3.04, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 44.56 is Neutral, neither overbought nor oversold. The STOCH value of 53.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
$18.38B12.79-2.54%3.03%1.52%-15.83%
53
Neutral
$69.78M-17.84%5.52%-1.76%-67.05%
52
Neutral
$117.98M-6.33%8.38%-6.46%-1110.82%
48
Neutral
$87.51M-1.03-9999.00%-9.47%48.11%
45
Neutral
$29.79M-2.90-22.07%11.55%-1.49%-399.62%
42
Neutral
$229.94M-6.07-126.29%-0.01%77.86%
40
Underperform
$31.50M-1.66-39.95%-5.98%-29.87%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CRWS
Crown Crafts
2.73
-1.44
-34.53%
HOFT
Hooker Furniture
10.98
-6.73
-38.00%
LCUT
Lifetime Brands
3.77
-1.88
-33.27%
NTZ
Natuzzi SPA
2.36
-2.14
-47.56%
PRPL
Purple Innovation
0.73
-0.22
-23.16%
NVFY
Nova Lifestyle
5.58
5.00
862.07%

Crown Crafts Corporate Events

Business Operations and StrategyExecutive/Board Changes
Crown Crafts Announces CEO Termination at Subsidiary
Neutral
Oct 31, 2025

On October 27, 2025, Crown Crafts, Inc. announced the termination of Donna E. Sheridan from her roles as President and CEO of its subsidiary, NoJo Baby & Kids, Inc., effective immediately, with her employment ending on November 30, 2025. This termination is classified as without cause, entitling Ms. Sheridan to benefits as per her employment agreement, reflecting the company’s ongoing efforts to consolidate internal operations.

The most recent analyst rating on (CRWS) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Crown Crafts stock, see the CRWS Stock Forecast page.

Crown Crafts Faces Challenges with Optimism in Earnings Call
Sep 1, 2025

Crown Crafts Navigates Challenges with Optimism in Latest Earnings Call

Crown Crafts Reports Q1 Fiscal 2026 Results
Aug 14, 2025

Crown Crafts, Inc. is a leading American company specializing in the design, marketing, and distribution of infant, toddler, and juvenile consumer products, including bedding, diaper bags, bibs, toys, and disposable products. Operating through its subsidiaries, Crown Crafts serves a diverse range of retail channels with both company-owned trademarks and licensed collections.

Executive/Board ChangesDividendsFinancial DisclosuresShareholder Meetings
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.

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: Nov 12, 2025