Core Viewpoint - Crown Crafts, Inc. reported a modest decline in net sales and gross profit for the first quarter of fiscal year 2026, primarily due to the impact of tariffs and inventory shortages, despite the contribution from the Baby Boom acquisition [3][4][5]. Financial Performance - Net sales decreased to $15.5 million for the three months ended June 29, 2025, down from $16.2 million for the same period in the prior year, representing a decrease of $734,000 or 4.5% [4][9]. - Gross profit fell by $448,000, resulting in a gross profit margin decrease from 24.5% to 22.7% of net sales compared to the prior year [5][9]. - The company reported a net loss of $1.10 million, or $0.10 per share, compared to a net loss of $0.3 million, or $0.03 per share, in the prior-year quarter [9][14]. Sales Breakdown - Sales of bedding and diaper bags increased by $540,000, while sales of bibs, toys, and disposable products decreased by $1.3 million [4]. - The Baby Boom acquisition contributed $2.1 million in net sales during the quarter, but overall sales were negatively impacted by inventory shortages due to high tariffs [3][4]. Expenses - Marketing and administrative expenses rose by $454,000, increasing from 26.3% of net sales to 30.5% of net sales compared to the prior year [6][9]. Dividend Announcement - The Board of Directors declared a quarterly cash dividend of $0.08 per share on the Company's Series A common stock, payable on October 3, 2025, to stockholders of record as of September 12, 2025 [7][9]. Company Overview - Crown Crafts, Inc. designs, markets, and distributes a variety of infant, toddler, and juvenile consumer products, and is one of America's largest producers in this sector [9][10].