Crown Crafts (NASDAQ:CRWS) Issues Earnings Results, Misses Expectations By $0.11 EPS

Crown Crafts (NASDAQ:CRWS) released its quarterly earnings results on Wednesday. The textile maker reported $0.03 earnings per share for the quarter, missing analysts’ consensus estimates of $0.14 by ($0.11), FiscalAI reports. Crown Crafts had a net margin of 2.24% and a return on equity of 4.79%. The firm had revenue of $22.38 million during the quarter, compared to the consensus estimate of $20.90 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 Trading Up 1.0%

NASDAQ CRWS opened at $2.89 on Friday. Crown Crafts has a 12-month low of $2.35 and a 12-month high of $3.17. The company has a fifty day simple moving average of $2.78 and a two-hundred day simple moving average of $2.80. The company has a current ratio of 3.43, a quick ratio of 1.47 and a debt-to-equity ratio of 0.37. The stock has a market cap of $30.92 million, a P/E ratio of 16.06 and a beta of 0.65.

Crown Crafts Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, July 2nd. Shareholders of record on Thursday, June 11th will be issued a $0.08 dividend. The ex-dividend date of this dividend is Thursday, June 11th. This represents a $0.32 dividend on an annualized basis and a dividend yield of 11.1%. Crown Crafts’s dividend payout ratio (DPR) is currently -35.96%.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings restated a “sell (d)” rating on shares of Crown Crafts in a research note on Monday, April 20th. One investment analyst has rated the stock with a Sell rating, Based on data from MarketBeat.com, the stock presently has an average rating of “Sell”.

Institutional Trading of Crown Crafts

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. LPL Financial LLC purchased a new stake in Crown Crafts in the fourth quarter valued at approximately $477,000. Empowered Funds LLC boosted its holdings in shares of Crown Crafts by 7.8% in 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 during the last quarter. Geode Capital Management LLC increased its stake in shares of Crown Crafts by 5.7% in the fourth quarter. Geode Capital Management LLC now owns 106,739 shares of the textile maker’s stock worth $296,000 after acquiring an additional 5,717 shares during the period. Bridgeway Capital Management LLC lifted 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 valued at $373,000 after purchasing an additional 3,688 shares during the period. Finally, XTX Topco Ltd purchased a new stake in Crown Crafts in the fourth quarter valued at $32,000. Institutional investors and hedge funds 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.