Core Viewpoint - Crown Crafts, Inc. reported a decline in revenue and earnings for the first quarter of fiscal 2026, primarily due to tariff pressures and inventory management challenges, while the stock has shown a modest gain since the earnings report [1][2][4]. Revenue and Earnings Performance - Crown Crafts posted net sales of $15.5 million, down 4.5% from $16.2 million in the prior-year period [2] - Gross profit decreased by 11.3% to $3.5 million, representing 22.7% of sales compared to 24.5% a year ago [2] - The company reported a net loss of $1.1 million, or $0.10 per share, compared to a net loss of $0.3 million, or $0.03 per share, in the same quarter last year [2] Segment Results - Sales of bedding and diaper bags increased by 8.6% year over year to $6.8 million, while sales of bibs, toys, and disposable products declined by 12.8% to $8.7 million [3] Key Business Metrics - Gross margin slipped by 180 basis points year over year due to higher costs of imported goods from China [4] - Marketing and administrative expenses rose by 10.6% to $4.7 million, increasing to 30.5% of sales from 26.3% a year earlier [4] - Interest expense surged by 180.2% to $0.3 million from $0.1 million in the prior-year period [4] Balance Sheet Overview - Inventories stood at $31.6 million as of June 29, 2025, up from $27.8 million at fiscal year-end [5] - Cash and equivalents declined to $0.2 million from $0.5 million at fiscal year-end [5] - Long-term debt fell to $11.9 million from $16.5 million at fiscal year-end [5] - Shareholders' equity slipped to $37.9 million from $39.6 million at fiscal year-end [5] Management Commentary - Management highlighted tariffs as a key challenge, with CEO Olivia Elliott noting consumer uncertainty and supplier disruption [6] - The Baby Boom acquisition contributed $2.1 million in sales during the quarter [6] - Price increases are being implemented to offset tariff impacts, with full effects expected by the end of September [6] Future Outlook - Management expressed cautious optimism regarding July sales trends and the renewal and expansion of the Disney licensing agreement [7] - CFO Claire Spencer emphasized the company's financial flexibility, with $12.2 million available under its revolving line of credit [7] - Management indicated that restocking by retailers should aid demand in upcoming quarters [11] Other Developments - Crown Crafts declared a quarterly dividend of $0.08 per share, payable on October 3, 2025 [12] - The company announced the extension of its Disney licensing agreement, expanding product categories and geographic reach [12] - Progress has been made in stabilizing the Manhattan Toy brand, with new product lines gaining traction at major retailers [12]

Crown Crafts (CRWS) Q1 2026 Earnings Call August 13, 2025 09:00 AM ET Speaker0Good morning, ladies and gentlemen, and welcome to the Crown Crafts Incorporated Conference Call. All participants will be in listen only mode. Please note this event is being recorded. I would now like to turn the conference back over to John Mcnamara. Please go ahead.Speaker1Thank you. Good morning, everyone, and thank you again for joining the Crown Craft's fiscal year twenty twenty six first quarter conference call. With us on ...

Back-to-college items like microwaves, table fans, bedding and some school supplies have been hit with big tariff increases. Bloomberg's David Fang explains https://t.co/QSgnA25GGA https://t.co/CxQOnvDDOj ...

Back-to-college essentials like microwaves, table fans, bedding and some school supplies have been hit with big tariff increases https://t.co/TnJYpYTd3r ...