Crown Crafts (NASDAQ:CRWS – Get Free Report) announced its quarterly earnings results on Wednesday. The textile maker reported $0.19 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.14 by $0.05, FiscalAI reports. The company had revenue of $16.77 million during the quarter, compared to the consensus estimate of $20.90 million. Crown Crafts had a return on equity of 12.91% and a net margin of 5.99%.
Here are the key takeaways from Crown Crafts’ conference call:
- Sales rose 8% to $16.8 million, while adjusted gross margin expanded 290 basis points to 25.6% as improved inventory availability, pricing initiatives, and a favorable product mix helped offset soft consumer demand.
- The company returned to profitability, reporting GAAP net income of $2.1 million, or $0.19 per share, versus a $1.1 million loss a year earlier, and generated $5.5 million in operating cash flow.
- Crown Crafts reduced debt from more than $14 million to $9.6 million during the quarter, with total liquidity of $12.1 million, strengthening its balance sheet for future growth investments.
- The relaunch of Groovy Girls has exceeded expectations, particularly in Canada, where demand has required inventory to be redirected from the U.S.; a partial Amazon launch is targeted for October and Germany distribution is planned for September.
- The board reduced the quarterly dividend to approximately a 4% yield to retain more cash for debt repayment and growth initiatives, while about $900,000 of requested tariff reimbursements remains unreceived and unbooked.
Crown Crafts Price Performance
NASDAQ CRWS traded up $0.12 during mid-day trading on Friday, hitting $2.77. The stock had a trading volume of 53,910 shares, compared to its average volume of 42,826. The company has a 50 day simple moving average of $2.91 and a 200 day simple moving average of $2.85. The company has a market cap of $29.86 million, a price-to-earnings ratio of 5.89 and a beta of 0.64. Crown Crafts has a 52-week low of $2.35 and a 52-week high of $3.17. The company has a quick ratio of 1.53, a current ratio of 3.58 and a debt-to-equity ratio of 0.31.
Crown Crafts Cuts Dividend
Institutional Trading of Crown Crafts
Several large investors have recently bought and sold shares of CRWS. Mariner LLC acquired a new position in shares of Crown Crafts during the 4th quarter worth $28,000. XTX Topco Ltd purchased a new position in Crown Crafts during the 4th quarter valued at about $32,000. Empowered Funds LLC increased its holdings in Crown Crafts by 7.8% during the 4th quarter. Empowered Funds LLC now owns 56,348 shares of the textile maker’s stock valued at $156,000 after acquiring an additional 4,078 shares in the last quarter. Geode Capital Management LLC increased its holdings in Crown Crafts by 5.7% during the 4th quarter. Geode Capital Management LLC now owns 106,739 shares of the textile maker’s stock valued at $296,000 after acquiring an additional 5,717 shares in the last quarter. Finally, Bridgeway Capital Management LLC raised its position in Crown Crafts by 3.0% during the third quarter. Bridgeway Capital Management LLC now owns 128,120 shares of the textile maker’s stock worth $373,000 after acquiring an additional 3,688 shares during the last quarter. Institutional investors and hedge funds own 30.23% of the company’s stock.
Analyst Upgrades and Downgrades
Separately, Weiss Ratings upgraded Crown Crafts from a “sell (d)” rating to a “hold (c-)” rating in a research report on Friday, June 26th. One research analyst has rated the stock with a Hold rating, Based on data from MarketBeat.com, the stock currently has an average rating of “Hold”.
View Our Latest Research Report on CRWS
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.
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