Crown Crafts (CRWS) AI Stock Analysis

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Crown Crafts

(NASDAQ:CRWS)

Rating:51Neutral

Price Target:

$3.00

▲(7.14%Upside)

Crown Crafts' overall stock score is primarily influenced by its financial performance challenges, including negative net income and declining margins. Technical indicators also suggest bearish momentum. Despite these challenges, effective cash management and a high dividend yield offer some potential for income-focused investors.

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

Market Cap

$29.59M

Dividend Yield11.43%

Average Volume (3M)38.97K

Price to Earnings (P/E)13.6

Beta (1Y)0.35

Revenue Growth-0.44%

EPS Growth-287.81%

CountryUS

Employees162

SectorConsumer Cyclical

Sector Strength59

IndustryFurnishings, Fixtures & Appliances

Share Statistics

EPS (TTM)-1.04

Shares Outstanding10,567,543

10 Day Avg. Volume74,988

30 Day Avg. Volume38,973

Financial Highlights & Ratios

PEG Ratio<0.01

Price to Book (P/B)0.36

Price to Sales (P/S)0.00

P/FCF Ratio3.31

Enterprise Value/Market Cap1.85

Enterprise Value/Revenue0.16

Enterprise Value/Gross Profit2.57

Enterprise Value/Ebitda2.32

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Crown Crafts Business Overview & Revenue Model

Company DescriptionCrown Crafts, Inc. (CRWS) is a leading American company in the consumer products sector, primarily focusing on the design, marketing, and distribution of infant and toddler products. With a strong presence in the home textile and juvenile bedding markets, Crown Crafts offers a diverse range of products including infant bedding, blankets, and accessories. The company is known for its dedication to quality, safety, and innovative design, catering to major retailers and consumers across the United States.

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:Jun 25, 2025

(Q4-2025)

% Change Since: -12.50%|

Next Earnings Date:Aug 13, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted strategic acquisitions and effective cash and inventory management, but faced challenges from economic conditions, increased tariffs, and a significant goodwill impairment charge, resulting in mixed financial outcomes.

Q4-2025 Updates

Positive Updates

Acquisition of Baby Boom Consumer Products

Crown Crafts acquired assets of Baby Boom Consumer Products, adding diaper bags and brand licenses such as Bluey and Ms. Rachel to their portfolio, contributing $11.9 million in net sales.

Increase in Cash Flow

Cash flow from operations was $9.8 million in fiscal 2025, up from $7.1 million in the prior year, enabling dividend payments and debt servicing.

Inventory Management

Total inventories decreased by 6.4% to $27.8 million, suggesting effective inventory management and preparation for warehouse consolidation.

Dividend Consistency

Paid $0.32 per share in cash dividends with a yield of 10%, marking the 15th consecutive year of dividend distribution.

Negative Updates

Impact of Tariffs and Economic Conditions

Persistent inflation and increased tariffs led to a decline in consumer discretionary spending, affecting overall sales.

Fourth Quarter Gross Profit Decline

Gross profit for Q4 decreased to 18.3% from 23.2% the previous year due to higher tariffs, increased rent, royalty expenses, and higher closeout sales.

Goodwill Impairment Charge

Recorded a $13.8 million goodwill impairment charge, resulting in a GAAP net loss of $10.8 million for the fourth quarter.

Increased Marketing and Administrative Expenses

Expenses rose 17% year-over-year due to increased advertising costs and expenses related to the Baby Boom acquisition.

Borrowing Increase

Borrowings under the credit facility rose to $18.5 million from $8.1 million, primarily to fund the Baby Boom acquisition.

Company Guidance

During the Crown Crafts Fourth Quarter and Fiscal Year 2025 Conference Call, significant metrics were discussed, highlighting a challenging yet strategic year for the company. The fiscal year ended with net sales of $87.3 million, slightly down from $87.6 million in the previous year, impacted by consumer spending constraints and import uncertainties. The acquisition of Baby Boom Consumer Products contributed $11.9 million in net sales, although this was offset by declines in the legacy business. Fourth quarter net sales increased by 2.9% to $23.2 million compared to the prior year, but the quarter's gross profit margin decreased to 18.3% from 23.2% due to factors like higher tariffs and increased operational costs. The company reported a GAAP net loss of $10.8 million for the fourth quarter, primarily due to a $13.8 million goodwill impairment charge, while the adjusted net loss was $429,000. For the full fiscal year, the adjusted net income stood at $1 million, with an adjusted diluted earnings per share of $0.10. Despite these challenges, Crown Crafts maintained a cash flow from operations of $9.8 million and paid dividends of $0.32 per share, marking the 15th consecutive year of dividend payouts. The company also saw a decrease in inventory levels by 6.4% and an increase in borrowings to $18.5 million, reflecting the funding of the Baby Boom acquisition. Looking ahead, Crown Crafts aims to navigate ongoing tariff challenges while continuing to expand its product offerings and market presence.

Crown Crafts Financial Statement Overview

Summary

Crown Crafts faces profitability challenges, as seen in negative net income and declining margins. However, a strong equity position and effective cash flow management offer some resilience. Operational restructuring and debt management are critical for future improvement.

Income Statement

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

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

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.

Breakdown	Mar 2025	Mar 2024	Jun 2023	Jun 2022	Mar 2021
Income Statement
Total Revenue	0.00	87.63M	75.05M	87.36M	79.16M
Gross Profit	0.00	22.40M	19.83M	23.31M	24.10M
EBITDA	0.00	13.10M	8.63M	10.31M	13.30M
Net Income	-9.36M	4.89M	5.65M	9.92M	6.08M
Balance Sheet
Total Assets	81.15M	82.71M	90.97M	60.16M	58.08M
Cash, Cash Equivalents and Short-Term Investments	521.00K	829.00K	1.74M	1.60M	613.00K
Total Debt	31.60M	23.84M	12.67M	2.64M	2.64M
Total Liabilities	41.53M	31.11M	41.76M	14.35M	16.22M
Stockholders Equity	39.62M	51.60M	49.21M	45.80M	41.87M
Cash Flow
Free Cash Flow	9.75M	6.30M	6.92M	7.73M	8.01M
Operating Cash Flow	9.82M	7.08M	7.74M	8.26M	8.74M
Investing Cash Flow	-17.17M	-193.00K	-16.91M	-490.00K	-733.00K
Financing Cash Flow	7.04M	-7.80M	9.32M	-6.79M	-7.67M

Crown Crafts Technical Analysis

Technical Analysis Sentiment

Negative

Last Price2.80

Price Trends

50DMA

3.01

Negative

100DMA

3.37

Negative

200DMA

3.86

Negative

Market Momentum

MACD

-0.05

Positive

RSI

37.67

Neutral

STOCH

4.57

Positive

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 2.8 is below the 20-day moving average (MA) of 3.02, below the 50-day MA of 3.01, and below the 200-day MA of 3.86, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 37.67 is Neutral, neither overbought nor oversold. The STOCH value of 4.57 is Positive, 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 (67)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RAVE	73 Outperform	$37.38M	14.10	21.75%	―	2.93%	20.81%
Sector *	67 Neutral	¥253.98B	13.04	6.57%	2.83%	5.07%	-11.36%
JRSH	66 Neutral	$41.66M	―	-1.33%	6.12%	24.43%	57.78%
CRWS	51 Neutral	$29.59M	13.58	-20.51%	11.43%	-0.44%	-287.81%
ARKR	50 Neutral	$32.73M	―	-22.57%	2.07%	-3.61%	-36.65%
WGHTQ	48 Neutral	$24.65M	―		―	-10.33%	79.59%

* Consumer Cyclical Sector Average

Performance Comparison

CRWS

Crown Crafts

2.80

-1.82

-39.39%

ARKR

Ark Restaurants

9.08

-3.97

-30.42%

RAVE

Rave Restaurant Group

2.63

0.77

41.40%

WGHTQ

WW International

0.31

-0.85

-73.28%

JRSH

Jerash Holdings (US)

3.28

0.52

18.84%

Crown Crafts Corporate Events

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: Jun 27, 2025