Crown Crafts (NASDAQ:CRWS) Announces Quarterly Earnings Results

Crown Crafts (NASDAQ:CRWS) released its quarterly earnings results on Wednesday. The textile maker reported $0.19 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.14 by $0.05, FiscalAI reports. Crown Crafts had a return on equity of 4.78% and a net margin of 2.24%.The business had revenue of $16.77 million during the quarter, compared to the consensus estimate of $20.90 million.

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

CRWS traded down $0.35 during trading on Thursday, hitting $2.62. The company’s stock had a trading volume of 215,471 shares, compared to its average volume of 41,668. The firm’s 50 day moving average price is $2.91 and its two-hundred day moving average price is $2.85. The stock has a market capitalization of $28.22 million, a price-to-earnings ratio of 14.56 and a beta of 0.64. Crown Crafts has a 12 month low of $2.35 and a 12 month 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

The firm also recently declared a quarterly dividend, which will be paid on Friday, October 2nd. Stockholders of record on Friday, September 11th will be issued a dividend of $0.03 per share. The ex-dividend date is Friday, September 11th. This represents a $0.12 dividend on an annualized basis and a dividend yield of 4.6%. Crown Crafts’s payout ratio is 177.78%.

Wall Street Analyst Weigh In

Separately, Weiss Ratings upgraded shares of 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, According to data from MarketBeat, the stock presently has an average rating of “Hold”.

Institutional Trading of Crown Crafts

Several hedge funds and other institutional investors have recently modified their holdings of the company. Bridgeway Capital Management LLC increased its stake in shares of 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 purchasing an additional 3,688 shares during the period. Empowered Funds LLC increased its stake in Crown Crafts by 7.8% in the 4th quarter. Empowered Funds LLC now owns 56,348 shares of the textile maker’s stock worth $156,000 after acquiring an additional 4,078 shares during the last quarter. Geode Capital Management LLC raised its stake in Crown Crafts by 5.7% during the fourth quarter. Geode Capital Management LLC now owns 106,739 shares of the textile maker’s stock valued at $296,000 after buying an additional 5,717 shares during the last quarter. Mariner LLC purchased a new position in Crown Crafts during the fourth quarter valued at $28,000. Finally, XTX Topco Ltd purchased a new stake in shares of Crown Crafts during the 4th quarter worth approximately $32,000. Institutional investors and hedge funds own 30.23% of the company’s stock.

About Crown Crafts

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.