Core Viewpoint - Crown Crafts, Inc. has faced significant financial challenges in fiscal 2025, including a substantial net loss and declining profitability, primarily due to a goodwill impairment charge and increased operational costs [2][3][7]. Revenue & Profitability Performance - For Q4 fiscal 2025, Crown Crafts reported net sales of $23.2 million, a 2.9% increase from $22.6 million in the prior year [2] - The company experienced a GAAP net loss of $10.8 million, or $1.04 per diluted share, compared to a net income of $1 million, or $0.10 per diluted share, in the previous year [2] - Gross profit fell 18.8% to $4.2 million, with gross margin narrowing to 18.3% from 23.2% due to unfavorable sales mix and tariff-related costs [2] - For the full fiscal year, revenues decreased by 0.4% to $87.3 million from $87.6 million [3] - Adjusted net income was $1.0 million ($0.10 per share), while GAAP net loss was $(9.4) million, or $(0.90) per diluted share, compared to a net income of $4.9 million, or $0.48 per diluted share in the prior year [3] - Gross profit for the full year fell 7.5% to $21.3 million, with gross margin narrowing to 24.4% from 26.2% [3] Key Business Metrics - The company ended the fiscal year with $0.5 million in cash and cash equivalents, down from $0.8 million the previous year [4] - Inventory was reduced by 6.4% to $27.8 million, reflecting a strategy of higher closeout sales [4] - Marketing and administrative expenses increased by 17% in Q4 to $4.6 million from $3.9 million, largely due to the integration of Baby Boom Consumer Products [4] - Borrowings under the credit facility rose to $18.5 million due to the Baby Boom acquisition [4] Management Commentary - CEO Olivia Elliott described fiscal 2025 as a "transitional year," influenced by persistent inflation and reduced consumer discretionary spending [6] - Strategic initiatives such as acquisitions, e-commerce expansion, and cost containment were emphasized for long-term gains [6] - The company remains optimistic about future positioning, highlighting improved retail partnerships and a streamlined product portfolio [6] Factors Influencing Results - The fourth quarter faced multiple headwinds, including lower margins from closeout sales and increased tariffs totaling $324,000 [7] - The most significant impact came from a $13.8 million goodwill impairment charge due to a decline in market capitalization [7] Guidance and Outlook - Crown Crafts did not provide formal financial guidance but acknowledged significant near-term challenges, particularly related to tariffs [9] - The company is exploring various mitigation strategies and reaffirmed its commitment to growth through product and channel expansion [9] Other Developments - During fiscal 2025, Crown Crafts completed the acquisition of Baby Boom Consumer Products, adding new product lines to its portfolio [10] - The company transitioned its European operations to a distributor model to support long-term sales growth [11] - The redesigned "Love, Stella" doll line gained exposure from a Meghan Markle endorsement, highlighting marketing initiatives [11]

Crown Crafts Inc (CRWS) Q4 2025 Earnings Call June 25, 2025 09:00 AM ET Company Participants Matt Hodges - Managing DirectorOlivia Elliott - CEO, President & DirectorClaire Spencer - Vice PresidentCraig Demarest - CFODouglas Ruth - President Conference Call Participants None - Analyst Operator Good day, and welcome to the Crown Crafts Inc. Fourth Quarter Fiscal Year twenty twenty five Conference Call. All participants will be in listen only mode. After today's presentation, there will be an opportunity to a ...

Financial Data and Key Metrics Changes - Fiscal year 2025 total sales were slightly below the previous year due to persistent inflation and consumer pullback on discretionary spending [4] - Fourth quarter net sales increased by 2.9% year-over-year to $23,200,000, driven by strong Baby Boom product sales [8] - Full year net sales for fiscal 2025 were $87,300,000, a slight decrease from $87,600,000 in the prior year [11] - GAAP net loss for the fourth quarter was $10,800,000, primarily due to a $13,800,000 goodwill impairment charge [10] - Adjusted net income for the year was $1,000,000, translating to adjusted diluted earnings per share of $0.10 [12] Business Line Data and Key Metrics Changes - The Baby Boom acquisition contributed $11,900,000 in net sales, but this was offset by declines in legacy business lines [11] - Gross profit margin for the fourth quarter decreased to 18.3% from 23.2% in the prior year, attributed to higher tariffs and increased expenses [9] - Marketing and administrative expenses rose by 17% year-over-year due to increased advertising costs and expenses from the Baby Boom acquisition [10] Market Data and Key Metrics Changes - The company faced challenges due to uncertainty around U.S. tariff policy, impacting sales from imports [4] - The transition to using distributors in Europe is expected to enhance international sales over time [32] Company Strategy and Development Direction - The company is focused on long-term growth through acquisitions and expanding product offerings, including the recent acquisition of Baby Boom Consumer Products [5] - Plans to mitigate tariff impacts include working with manufacturers and retail partners to absorb costs [17] - The company aims to explore product and channel expansions to increase sales and market share [17] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the economic headwinds affecting consumers and the company, but emphasized steps taken to position for long-term success [16] - The most pressing challenge is navigating the impact of tariffs, with a current expectation of a 30% tariff on goods ordered [17] - Management expressed optimism about future growth opportunities and the integration of acquisitions [16] Other Important Information - Cash flow from operations for 2025 was $9,800,000, an increase from $7,100,000 in the prior year [13] - The company paid $0.32 per share in cash dividends, marking the fifteenth consecutive year of dividend payments [14] Q&A Session Summary Question: Update on warehouse status - The company is still exploring options for the warehouse but has focused on tariffs recently [23] Question: Outcome of the New York Toy Show - The sales and product development team received positive feedback and wrote some orders at the Toy Fair [25] Question: Status of the Stella doll redesign - The new Love Stella line has been well-received, aided by marketing efforts including mentions by Meghan Markle [26] Question: Sales to LEGOLAND - Sales to LEGOLAND increased in fiscal 2025, with expectations to be the only plush supplier in the park soon [29] Question: Development of licensed diaper bags - The company is excited about potential licensed diaper bags but is facing challenges due to tariffs [30] Question: Update on tax credit for baby products - No recent updates on the potential tax credit for parents have been heard [31] Question: Impact of using distributors in Europe - The transition to distributors is expected to positively impact international sales [32] Question: Redesign of the Manhattan Toy website - The redesigned website has improved user experience and is driving more traffic [34]

Core Viewpoint - Crown Crafts, Inc. is set to release its fourth quarter and full year results for fiscal 2025 on June 25, 2025, before market opening, with a teleconference scheduled for discussion [1] Company Overview - Crown Crafts, Inc. designs, markets, and distributes a range of infant, toddler, and juvenile consumer products, and is one of the largest producers in the U.S. for items such as infant bedding, diaper bags, and toys [4] - The company operates through subsidiaries NoJo Baby & Kids, Inc. and Sassy Baby, Inc., offering products under company-owned trademarks and licensed collections [4] - Sales are directed to various retailers, including mass merchants and juvenile specialty stores [4] Teleconference Details - Interested parties can join the teleconference by calling (844) 861-5504 or by accessing it in listen-only mode via the company's website [2] - A replay of the teleconference will be available one hour after the call until September 25, 2025, at 4:00 p.m. Central Daylight Time [3]