Crown Crafts Reports First Quarter Results and Future Outlook

Crown Crafts Reports Financial Insights for First Quarter Fiscal 2026

Today, Crown Crafts, Inc. (NASDAQ-CM: CRWS) provided a comprehensive overview of its financial performance for the first quarter of fiscal year 2026, which concluded on June 29, 2025. This update reflects ongoing challenges within the market environment and strategic adjustments made by the company.

Financial Performance Overview

The recent report underscores a slight decline in net sales, totaling $15.5 million, compared to $16.2 million from the same quarter last year. The drop of approximately 4.5%, or $734,000, is attributed to various market factors including inventory shortages driven by high tariffs impacting the supply chain.

Sales Segmentation

Despite the overall downturn, the launch of the Baby Boom acquisition brought in an additional $2.1 million in sales during this quarter. This infusion aided specific product categories, notably bedding and diaper bags, which saw increases. However, it also highlighted challenges as the sales of bibs, toys, and disposable products fell by $1.3 million during the same span.

Gross Profit Analysis

Alongside sales challenges, gross profit also witnessed a decline, dropping to 22.7% of net sales from 24.5% in the previous year. This change is mainly due to escalating tariffs on imported goods, particularly those sourced from China. The increased costs have proved to be a major hurdle, pushing companies to rethink their operational strategies.

Impact of Increased Costs

Along with the decrease in gross profit, marketing and administrative expenses rose by $454,000 compared to the previous year, which elevated expenses as a percentage of net sales from 26.3% to 30.5%. These increases include costs associated with the Baby Boom acquisition and other marketing initiatives aiming to bolster brand presence.

Dividend Declaration

Crown Crafts also announced its commitment to returning value to shareholders with a quarterly dividend of $0.08 per share. This dividend is set to be distributed on October 3, 2025, to stockholders recorded as of September 12, 2025, maintaining shareholder confidence amidst fluctuating financial performance.

Upcoming Teleconference Details

To further discuss the quarterly results, Crown Crafts will host a teleconference, offering investors and analysts insights into the company’s strategies and outlook. Interested parties can join the call by dialing (844) 861-5504, starting at 8:00 a.m. CDT today. This session is expected to provide clarity around the company’s adaptive strategies in navigating the current economic landscape, particularly in relation to tariff impacts.

About Crown Crafts, Inc.

Founded in 1957, Crown Crafts, Inc. is a leading purveyor of infant and juvenile consumer products. The company’s broad portfolio includes a range of items such as bedding, diaper bags, bibs, and toys, producing innovative designs through its subsidiaries, NoJo Baby & Kids, Inc. and Sassy Baby, Inc. By operating under multiple recognizable trademarks, Crown Crafts delivers quality products directly to consumers through various retail channels, keeping children's comfort and safety at the forefront.

Frequently Asked Questions

What were the net sales for Crown Crafts in the first quarter?

The net sales for Crown Crafts in the first quarter were $15.5 million, compared to $16.2 million in the prior-year quarter.

What challenges did Crown Crafts face this quarter?

Crown Crafts faced challenges primarily due to increased tariffs impacting their inventory and sales, alongside decreased sales in certain product categories.

What is the dividend amount declared for this quarter?

The declared quarterly dividend is $0.08 per share of Series A common stock.

When is the teleconference scheduled for discussing the results?

The teleconference is scheduled for 8:00 a.m. CDT today, where interested parties can join to discuss the results.

What products does Crown Crafts specialize in?

Crown Crafts specializes in a variety of infant and juvenile products, including bedding, bibs, toys, and diaper bags, aimed at providing safety and comfort for children.

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