Crown Crafts (NASDAQ:CRWS) Releases Quarterly Earnings Results, Misses Estimates By $0.11 EPS

Crown Crafts (NASDAQ:CRWS) announced its quarterly earnings data on Wednesday. The textile maker reported $0.03 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.14 by ($0.11), FiscalAI reports. Crown Crafts had a positive return on equity of 2.93% and a negative net margin of 11.10%.The firm had revenue of $22.38 million during the quarter, compared to analysts’ expectations of $16.30 million.

Here are the key takeaways from Crown Crafts’ conference call:

• Crown Crafts said fiscal Q4 net sales were essentially flat year over year at about $22 million despite a difficult consumer backdrop, and full-year sales topped $80 million.
• Gross margin improved sharply to 22.9% in the quarter, up 460 basis points from last year, driven by pricing actions and a better mix of higher-margin products.
• The company posted positive net income of $280,000 in Q4 and generated $8.3 million of operating cash flow for the fiscal year, while reducing debt to $14.1 million from $18.5 million.
• Management highlighted early momentum for the Groovy Girls relaunch, which is currently selling through specialty retailers and is scheduled to expand to Amazon and international channels later in the year.
• Executives said tariff pressures remain manageable for now, with about $175,000 of tariff refunds received so far versus roughly $5.5 million requested, and noted they are still adjusting operations, inventory, and facilities over the next two years.

Crown Crafts Stock Up 2.9%

Shares of CRWS opened at $2.86 on Thursday. Crown Crafts has a 52 week low of $2.35 and a 52 week high of $3.20. The company has a quick ratio of 1.47, a current ratio of 3.43 and a debt-to-equity ratio of 0.37. The company has a market capitalization of $30.60 million, a price-to-earnings ratio of -3.21 and a beta of 0.65. The stock’s 50-day moving average price is $2.78 and its 200-day moving average price is $2.80.

Crown Crafts Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, July 2nd. Stockholders of record on Thursday, June 11th will be issued a $0.08 dividend. This represents a $0.32 annualized dividend and a dividend yield of 11.2%. The ex-dividend date of this dividend is Thursday, June 11th. Crown Crafts’s payout ratio is -35.96%.

Analyst Ratings Changes

Separately, Weiss Ratings reiterated a “sell (d)” rating on shares of Crown Crafts in a report on Monday, April 20th. One investment analyst has rated the stock with a Sell rating, Based on data from MarketBeat, the company presently has a consensus rating of “Sell”.

Institutional Investors Weigh In On Crown Crafts

Several hedge funds have recently bought and sold shares of CRWS. Mariner LLC purchased a new position in shares of Crown Crafts during the 4th quarter valued at approximately $28,000. XTX Topco Ltd purchased a new stake in Crown Crafts during the fourth quarter worth $32,000. Empowered Funds LLC grew its position in Crown Crafts by 7.8% during the fourth quarter. Empowered Funds LLC now owns 56,348 shares of the textile maker’s stock valued at $156,000 after buying an additional 4,078 shares during the period. Geode Capital Management LLC grew its position in Crown Crafts by 5.7% during the fourth quarter. Geode Capital Management LLC now owns 106,739 shares of the textile maker’s stock valued at $296,000 after buying an additional 5,717 shares during the period. Finally, Bridgeway Capital Management LLC increased its holdings in Crown Crafts by 3.0% in the third quarter. Bridgeway Capital Management LLC now owns 128,120 shares of the textile maker’s stock valued at $373,000 after buying an additional 3,688 shares in the last quarter. Hedge funds and other institutional investors own 30.23% of the company’s stock.

Crown Crafts Company Profile

Crown Crafts, Inc (NASDAQ: CRWS) is a U.S.-based designer, marketer and distributor of infant, toddler and juvenile consumer products. The company develops a wide range of softlines and related accessories, including crib and toddler bedding, blankets, decorative pillows, bath towels and washcloths. Since its founding in 1957, Crown Crafts has focused on combining creative design with functional quality to meet the shifting preferences of young families and caregivers.

The company operates two primary business segments.