Latest news with #CRWS
Yahoo
4 days ago
- Business
- Yahoo
Crown Crafts Inc (CRWS) Q1 2026 Earnings Call Highlights: Navigating Challenges with Strategic ...
Net Sales: $15.5 million, a 4.5% decrease compared to the first quarter of fiscal year 2025. Gross Profit: Decreased by $448,000; gross margin decreased from 24.5% to 22.7% of net sales. Marketing and Administrative Expenses: Increased to 30.5% of net sales from 26.3% in the prior year. Net Loss: $1.1 million or $0.10 loss per diluted share. Cash and Cash Equivalents: $227,000 at the end of the first quarter. Inventories: $31.6 million, a 13.6% increase compared to the end of last fiscal year. Indebtedness: $13.9 million with $12.2 million available under the revolving line of credit. Dividend: Declared an $0.08 per share cash dividend. Warning! GuruFocus has detected 11 Warning Signs with CRWS. Release Date: August 13, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Crown Crafts Inc (NASDAQ:CRWS) expanded its product portfolio with the acquisition of Baby Boom, which is expected to drive growth. The company extended its license agreement with Disney, expanding its reach to sales in Canada and including diaper bags in its licensed products. Sales in July were encouraging, and the company is cautiously optimistic about the rest of the fiscal year. The balance sheet and cash flow remain solid, positioning the company well to respond to challenges and continue growth. The company declared an $0.08 per share cash dividend, continuing its history of returning value to shareholders. Negative Points First quarter net sales decreased by 4.5% compared to the first quarter of fiscal year 2025, driven by declines in sales of bibs, toys, and disposable products. Gross profit decreased by $448,000 from the prior year, with a decrease in gross margin from 24.5% to 22.7% of net sales. Marketing and administrative expenses increased, driven by costs associated with the Baby Boom acquisition and increased advertising expenses. The company reported a GAAP net loss of $1.1 million for the first quarter, primarily due to increased tariffs and inventory shortages. Cash and cash equivalents decreased to $227,000 from $521,000 at the end of fiscal 2025, indicating tighter liquidity. Q & A Highlights Q: Target is considering doing less direct sourcing. Could this create an opportunity for Crown Crafts? A: Olivia Elliott, President and CEO, responded that they hope so, as they have heard similar rumors. This could potentially open up opportunities to regain programs that Target had previously taken for direct sourcing. Q: With a 30% tariff, can the company be profitable in the future? A: Olivia Elliott stated that they are working to mitigate tariffs and have started implementing price increases with customers. They are hopeful that these measures will help offset costs and maintain profitability. Q: Are there opportunities to expand Manhattan toy sales overseas? A: Olivia Elliott mentioned that they believe there is a significant opportunity to expand sales by combining the Manhattan toy brand with the Sassy brand through distributors, which they see as a better model for expansion. Q: How are the redesigned Stella dolls performing in the market? A: Olivia Elliott noted that despite the impact of tariffs, the redesigned Stella dolls have been well received at trade shows and are performing well in the market. Q: Are retailers' inventory levels low, and could this lead to increased orders in the future? A: Olivia Elliott confirmed that retailers have reduced their inventory levels significantly, which has impacted sales. However, they are hopeful that as inventory levels normalize, order patterns will return to normal, indicating potential for increased future orders. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30-06-2025
- Business
- Yahoo
Crown Crafts Stock Declines Post Q4 Earnings Amid Tariff Headwinds
Shares of Crown Crafts, Inc. CRWS have lost 12.5% since the company reported earnings for the quarter ended March 30, 2025. This compares to the S&P 500 Index's 0.7% gain over the same time frame. Over the past month, the stock has lost 11.3% versus the S&P 500's 6.3% rise. For the fourth quarter of fiscal 2025, Crown Crafts reported net sales of $23.2 million, a 2.9% increase over the prior-year period's $22.6 million. However, the bottom line took a significant hit, with the company posting a GAAP net loss of $10.8 million, or $1.04 per diluted share, against the prior-year period's net income of $1 million, or $0.10 per diluted share. This sharp decline was due to a $13.8 million non-cash goodwill impairment charge related to the company's declining market capitalization. Excluding this charge, the adjusted net loss was $429,000, or $0.04 per diluted share. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) Gross profit for the fiscal fourth quarter fell 18.8% to $4.2 million from $5.2 million a year earlier. Gross margin narrowed to 18.3% from 23.2% a year ago, primarily due to an unfavorable sales mix and tariff-related costs. For the full fiscal year, revenues were down 0.4% to $87.3 million from $87.6 million. Adjusted net income came in at $1.0 million ($0.10 per share). GAAP net loss was $(9.4) million, or $(0.90) per diluted share, against net income of $4.9 million, or $0.48 per diluted share. Gross profit fell 7.5% to $21.3 million from $23 million a year earlier, and the gross margin narrowed to 24.4% from 26.2%. Crown Crafts, Inc. price-consensus-eps-surprise-chart | Crown Crafts, Inc. Quote Crown Crafts ended the fiscal year with $0.5 million in cash and cash equivalents, down from $0.8 million the previous year. Inventory was reduced by 6.4% from the comparable period of fiscal 2024 to $27.8 million, reflecting a strategy of higher closeout sales in preparation for a warehouse consolidation. Marketing and administrative expenses climbed 17% in the fourth quarter of fiscal 2025 to $4.6 million from $3.9 million, largely due to the integration of Baby Boom Consumer Products and higher advertising spend. Borrowings under the company's credit facility rose to $18.5 million due to the Baby Boom acquisition. Full-year operating cash flow was strong at $9.8 million, up from $7.1 million in fiscal 2024, enabling continued dividend payments and debt servicing. However, long-term debt more than doubled to $16.5 million from $8.1 million, stemming from the Baby Boom acquisition. CEO Olivia Elliott described fiscal 2025 as another 'transitional year,' shaped by persistent inflation and reduced consumer discretionary spending. She emphasized that strategic initiatives — including acquisitions, ecommerce expansion and cost containment — were implemented with an eye on long-term gains. While economic pressures have weighed on immediate results, the company remains optimistic about its future positioning. Elliott highlighted improved retail partnerships and a streamlined product portfolio as its key strengths heading into fiscal 2026. Multiple headwinds converged during the fourth quarter of fiscal 2025. A higher volume of closeout sales — designed to lower inventory — came at lower margins. In addition, $324,000 in increased tariffs and higher royalty expenses, stemming from the Baby Boom business, further squeezed margins. The most material hit came from the $13.8 million goodwill impairment, attributed to the prolonged decline in CRWS' market capitalization. This charge erased all goodwill from the balance sheet as of March 30, 2025. While Crown Crafts did not provide formal financial guidance, management acknowledged significant near-term challenges, particularly in relation to tariffs. Elliott noted that newly ordered goods are now subject to an additional 30% tariff. The company is working with both suppliers and retail partners to share this burden and is exploring various mitigation strategies. Meanwhile, Crown Crafts' leadership reaffirmed its commitment to driving growth through product and channel expansion. During fiscal 2025, Crown Crafts completed the acquisition of Baby Boom Consumer Products, adding diaper bags and popular licensed brands, such as Bluey and Ms. Rachel, to its portfolio. The company also finalized the full integration of Manhattan Toy and closed its U.K. subsidiary, incurring $244,000 in related costs. In international markets, Crown Crafts transitioned its European operations to a distributor model, a move expected to support long-term sales growth. The company is also supplying plush products for the newly opened LEGOLAND in Shanghai, where it expects to become the exclusive plush vendor. Additionally, the redesigned "Love, Stella" doll line — gaining exposure from a Meghan Markle endorsement — was cited as a highlight in CRWS' marketing initiatives. 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 Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
26-06-2025
- Business
- Yahoo
Crown Crafts Inc (CRWS) Q4 2025 Earnings Call Highlights: Navigating Challenges with Strategic ...
Fourth Quarter Net Sales: $23.2 million, a 2.9% increase year-over-year. Fourth Quarter Gross Profit Margin: 18.3%, down from 23.2% in the prior year quarter. Fourth Quarter GAAP Net Loss: $10.8 million or $1 per diluted share. Fourth Quarter Adjusted Net Loss: $429,000 or $0.04 per diluted share. Full Year Net Sales: $87.3 million, slightly down from $87.6 million in the prior year. Full Year Gross Profit Margin: 24.4%, down from 26.4% in fiscal '24. Full Year GAAP Net Loss: $9.4 million or $0.90 per diluted share. Full Year Adjusted Net Income: $1 million or $0.10 per diluted share. Cash and Cash Equivalents: $521,000 at fiscal year-end, down from $830,000 in the prior year. Inventories: $27.8 million, a 6.4% decrease from the previous year. Borrowings Under Credit Facility: $18.5 million, up from $8.1 million in the prior year. Cash Flow from Operations: $9.8 million, up from $7.1 million in the prior year. Dividends Paid: $0.32 per share with a yield of 10%. Warning! GuruFocus has detected 10 Warning Signs with CRWS. Release Date: June 25, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Crown Crafts Inc (NASDAQ:CRWS) successfully acquired Baby Boom Consumer products, expanding their product portfolio with diaper bags and popular brand licenses such as Bluey and Ms. Rachel. The company maintained financial health with a cash flow of $9.8 million, allowing for regular dividend payments and debt servicing. Net sales for the fourth quarter increased by 2.9% compared to the prior year, driven by strong sales of Baby Boom products. Crown Crafts Inc (NASDAQ:CRWS) has expanded its e-commerce capabilities and maintained good relationships with major retail partners. The company has been paying dividends for 15 consecutive years, with a yield of 10% in fiscal 2025, demonstrating a commitment to returning value to shareholders. Total sales for fiscal 2025 were slightly below the previous year due to persistent inflation and consumer pullback on discretionary spending. Gross profit margins decreased from 23.2% to 18.3% in the fourth quarter, impacted by higher tariffs, increased rent, and royalty expenses. 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. Marketing and administrative expenses increased by 17% year over year, driven by higher advertising costs and expenses related to the Baby Boom acquisition. Borrowings under the credit facility increased to $18.5 million at the end of fiscal 2025, reflecting the funding of the Baby Boom acquisition. Q: Can you provide an update on the warehouse situation? A: Olivia Elliott, President and CEO, stated that while they are exploring various options, the focus has been on tariffs recently. They hope to make some decisions regarding the warehouse in fiscal 2026. Q: How did the New York Toy Show go for Crown Crafts? A: Olivia Elliott mentioned that the show went well, with good traffic and feedback on new products. Orders were written, although it's not common to do so at the show due to EDI capabilities. Q: Can you comment on the Stella Doll and its redesign? A: Olivia Elliott explained that the Stella Doll line has been redesigned to include a newborn doll and improvements to the toddler doll. Meghan Markle's mention of the doll helped with marketing and social media exposure. Q: Is Crown Crafts involved with the new Legoland in Shanghai? A: Olivia Elliott confirmed that Crown Crafts is supplying plush toys for the park, and sales to Legoland increased in fiscal 2025 compared to fiscal 2024. Q: Are there developments in the diaper bag segment? A: Olivia Elliott noted excitement from licensing partners for licensed diaper bags, but tariffs are impacting costs. They are exploring ways to manage these costs to expand the segment. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Washington Post
25-06-2025
- Business
- Washington Post
Crown Crafts: Fiscal Q4 Earnings Snapshot
GONZALES, La. — GONZALES, La. — Crown Crafts Inc. (CRWS) on Wednesday reported a loss of $10.8 million in its fiscal fourth quarter. The Gonzales, Louisiana-based company said it had a loss of $1.04 per share. Losses, adjusted for one-time gains and costs, came to 4 cents per share. The maker of children's products posted revenue of $23.2 million in the period. For the year, the company reported a loss of $9.4 million, or 90 cents per share. Revenue was reported as $87.3 million. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on CRWS at
Yahoo
25-06-2025
- Business
- Yahoo
Crown Crafts: Fiscal Q4 Earnings Snapshot
GONZALES, La. (AP) — GONZALES, La. (AP) — Crown Crafts Inc. (CRWS) on Wednesday reported a loss of $10.8 million in its fiscal fourth quarter. The Gonzales, Louisiana-based company said it had a loss of $1.04 per share. Losses, adjusted for one-time gains and costs, came to 4 cents per share. The maker of children's products posted revenue of $23.2 million in the period. For the year, the company reported a loss of $9.4 million, or 90 cents per share. Revenue was reported as $87.3 million. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on CRWS at Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
