Crown Crafts (NASDAQ:CRWS) Releases Quarterly Earnings Results, Beats Estimates By $0.05 EPS

Crown Crafts (NASDAQ:CRWS) issued its quarterly earnings data on Wednesday. The textile maker reported $0.19 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 company had revenue of $16.77 million during the quarter, compared to analyst estimates 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 Trading Down 2.3%

Shares of CRWS stock traded down $0.07 on Wednesday, hitting $2.97. 113,489 shares of the company’s stock traded hands, compared to its average volume of 40,650. The company has a debt-to-equity ratio of 0.31, a quick ratio of 1.53 and a current ratio of 3.58. Crown Crafts has a one year low of $2.35 and a one year high of $3.17. The company’s fifty day simple moving average is $2.91 and its 200 day simple moving average is $2.85. The stock has a market capitalization of $31.96 million, a price-to-earnings ratio of 16.50 and a beta of 0.64.

Analyst Ratings Changes

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, According to MarketBeat.com, Crown Crafts has a consensus rating of “Hold”.

Institutional Trading of Crown Crafts

Institutional investors have recently added to or reduced their stakes in the business. LPL Financial LLC purchased a new stake in Crown Crafts during the 4th quarter valued at $477,000. XTX Topco Ltd purchased a new position in shares of Crown Crafts in the fourth quarter valued at about $32,000. Mariner LLC bought a new position in shares of Crown Crafts during the fourth quarter valued at about $28,000. Geode Capital Management LLC raised its stake in shares of 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 acquiring an additional 5,717 shares during the last quarter. Finally, Empowered Funds LLC boosted its holdings in shares of Crown Crafts by 7.8% during the fourth quarter. Empowered Funds LLC now owns 56,348 shares of the textile maker’s stock worth $156,000 after purchasing an additional 4,078 shares during the period. 30.23% of the stock is currently owned by hedge funds and other institutional investors.

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.