Crown Crafts Announces Financial Results for Second Quarter Fiscal 2027

Rhea-AI Summary

Crown Crafts (CRWS) reported second-quarter fiscal 2027 net income of $1.3 million, improving despite lower sales than a year earlier. For the quarter ended September 27, 2026, sales fell to $19.0 million from $23.7 million, while diluted earnings per share rose to $0.12 from $0.11. Gross margin increased to 32.0% from 27.7%, including $449,000 in tariff refunds and $236,000 in severance expense. Excluding those items, adjusted gross margin was 30.9%. Operating income declined to $1.564 million from $1.863 million.

Six-month net income rose to $3.377 million from $53,000, while sales declined to $35.794 million from $39.173 million. Noncurrent long-term debt fell to $3.314 million from $12.132 million at March 29, 2026. The board declared a $0.03 quarterly dividend per Series A common share, payable January 4, 2027, to holders of record December 11, 2026.

16 points · 0 major

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0 major · 10 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointQuarterly net income rose to $1.317 million from $1.157 million; diluted EPS increased to $0.12 from $0.11.
• Moderate pointQuarterly gross margin increased to 32.0% from 27.7% year over year.
• Moderate pointSix-month net income rose to $3.377 million from $53,000; diluted EPS increased to $0.31 from $0.01.
• Moderate pointSix-month operating income increased to $4.363 million from $664,000 year over year.
• Moderate pointSix-month gross profit rose to $14.114 million from $10.089 million; gross margin increased to 39.4% from 25.8%.
• Moderate pointTariff refunds reduced cost of products sold by $4.224 million over six months, including $449,000 this quarter. 16% of market cap
• Moderate pointNoncurrent long-term debt fell to $3.314 million from $12.132 million at March 29, 2026.

9 minor points

• Minor pointQuarterly adjusted gross margin, excluding tariff refunds and severance, reached 30.9%, up 320 basis points year over year.
• Minor pointQuarterly marketing and administrative expenses fell to $4.519 million from $4.708 million year over year.
• Minor pointQuarterly net interest income was $72,000, versus net interest expense of $287,000 a year earlier.
• Minor pointQuarterly other income, net, increased to $150,000 from $4,000 year over year.
• Minor pointSix-month adjusted gross profit increased to $10.126 million from $10.089 million; adjusted gross margin was 28.3%.
• Minor pointSix-month net interest expense fell to $118,000 from $570,000 year over year.
• Minor pointSix-month other income, net, increased to $315,000 from $103,000 year over year.
• Minor pointCash and cash equivalents increased to $426,000 from $200,000 at March 29, 2026.
• Minor point. Forward-looking: it has not happened yet and may not happen.Management reported progress on warehouse consolidation and is developing higher-margin products and sales channels.

Negative

• Moderate pointQuarterly sales declined to $19.028 million from $23.695 million year over year.
• Moderate pointQuarterly operating income fell to $1.564 million from $1.863 million year over year.
• Moderate pointQuarterly gross profit declined to $6.083 million from $6.571 million year over year.
• Moderate pointSix-month sales declined to $35.794 million from $39.173 million year over year.
• Moderate pointCurrent liabilities increased to $16.493 million from $13.869 million at March 29, 2026.

5 minor points

• Minor pointQuarterly adjusted gross profit declined to $5.870 million from $6.571 million year over year.
• Minor pointSix-month marketing and administrative expenses increased to $9.751 million from $9.425 million year over year.
• Minor pointSeverance expense of $236,000 increased cost of products sold in the quarter.
• Minor pointQuarterly income tax expense rose to $469,000 from $423,000 year over year.
• Minor pointSix-month income tax expense rose to $1.183 million from $144,000 year over year.

Key Figures

Net sales: $19.0 million vs. $23.7 million Gross margin: 32.0% vs. 27.7% Adjusted gross margin: 30.9%, up 320 basis points +5 more

Net sales

$19.0 million vs. $23.7 million

Second quarter fiscal 2027 vs. prior-year quarter

Gross margin

32.0% vs. 27.7%

Second quarter fiscal 2027 vs. prior-year quarter

Adjusted gross margin

30.9%, up 320 basis points

Second quarter fiscal 2027; adjusted for tariff refunds and severance expense

Net income

$1.3 million vs. $1.2 million

Second quarter fiscal 2027 vs. prior-year quarter

Diluted earnings per share

$0.12 vs. $0.11

Second quarter fiscal 2027 vs. prior-year quarter

Quarterly dividend

$0.03 per share

Declared on Series A common stock

Tariff refunds

$0.4 million

Recorded during the second quarter fiscal 2027

Severance expense

$0.2 million

Recorded during the second quarter fiscal 2027

Previous Earnings Reports

1 past event · Latest: Aug 12

Same Type 1 event

1. Aug 12

   1Q27 earnings

   24h Move

   -10.4%

   Reported higher sales and net income, with gross margin boosted by $3.7 million in tariff refunds.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

non-gaap, weighted average shares outstanding

2 terms

non-gaap financial

"non-GAAP financial measures"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

weighted average shares outstanding financial

"Weighted average shares outstanding: Basic"

The weighted average shares outstanding is the average number of a company’s common shares that were available during a reporting period, adjusted so each change (like new shares issued or shares bought back) counts only for the portion of the period it was in effect. Investors use it to calculate per-share measures such as earnings per share, so it shows how ownership dilution or buybacks affect what each share is entitled to—like averaging how many people were at a potluck over time to determine each person’s share of the food.

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GONZALES, La., Nov. 12, 2026 (GLOBE NEWSWIRE) -- Crown Crafts, Inc. (NASDAQ-CM: CRWS) (the “Company”) a producer, designer, and distributor of infant, toddler, and juvenile consumer products, today reported results for the second quarter fiscal year 2027, which ended September 27, 2026.

Second Quarter Fiscal 2027 Summary

• Net sales of $19.0 million compared to $23.7 million in the prior-year quarter
• Gross profit margin increased to 32.0% from 27.7% in the prior-year quarter reflecting tariff refunds and severance expense recorded in the second quarter of fiscal 2027. Adjusting for these two factors, gross profit margin would have been 30.9%⁽¹⁾, up 320 basis points year over year
• Net income of $1.3 million, or $0.12 per share, increased from $1.2 million, or $0.11 per share in the prior-year quarter, respectively
• Declared a quarterly dividend of $0.03 per share on the Company's Series A common stock

(1)

Adjusted gross margin is a non-GAAP measure. See “Non-GAAP Financial Measures” and “Reconciliation to Non-GAAP Financial Measures” below for reconciliations of non-GAAP financial measures to their most directly comparable GAAP financial measures.

“We continue to execute well on our profitability initiatives with meaningful improvement this quarter in our gross profit, marketing and administrative expenses, and year-to-date operating cash flow,” said Olivia Elliott, President and Chief Executive Officer. “In addition, we generated strong sales due in large part to the warm reception for Groovy Girls in Canada. Our stronger profitability reflects our continued initiatives around efficiency and profitability, and our talented team is simultaneously focused on the development of additional higher-margin products and sales channels to grow both sales and profitability in the quarters ahead. While we continue to make progress on longer-term initiatives including warehouse consolidation, our improved profitability and stronger cash flow are already encouraging and have helped us to significantly reduce debt and the associated interest expense while continuing to pay a dividend to our valued shareholders. Our entire team is energized by Crown Crafts’ strong positioning and the opportunities ahead to enhance shareholder value.”

Second Quarter Fiscal 2027 Results
Net sales was $19.0 million for the three-month period ended September 27, 2026 compared to $23.7 million for the three-month period ended September 28, 2025. Gross profit of $6.1 million compared to $6.6 million in the prior-year period, reflecting a gross margin of 32.0%, up from 27.7%. Cost of products sold benefitted from $0.4 million in tariff refunds and was offset by $0.2 million in severance expense during the current period, adjusting for these two items results in a gross margin on net sales of 30.9% which improved by 320 basis points year over year.

Marketing and administrative expenses were successfully reduced to $4.5 million compared to $4.7 million in the year-earlier period. Net income improved to $1.3 million, or $0.12 per diluted share, up from $1.2 million, or $0.11 per diluted share in the prior-year second quarter.

Quarterly Cash Dividend
The Board of Directors declared a quarterly cash dividend on the Company’s Series A common stock of $0.03 per share, which will be paid on January 4, 2027 to stockholders of record at the close of business on December 11, 2026.

Conference Call
The Company will host a teleconference today at 4:00 p.m. CT to discuss results. Interested individuals may join the teleconference by dialing (844) 539-3703 or (412) 652-1273 and asking to join the Crown Crafts, Inc. call. The teleconference can also be accessed in listen-only mode by visiting the Company’s website at www.crowncrafts.com. The financial information to be discussed during the teleconference may be found on the investor relations portion of the Company’s website after earnings are released.

A telephone replay of the teleconference will be available three hours after the call through November 26, 2026. To access the replay, dial (844) 512-2921 in the United States or (412) 317-6671 from international locations and enter replay access code 13762511.

About Crown Crafts, Inc.
Founded in 1957, Crown Crafts, Inc. designs, markets, and distributes infant, toddler, and juvenile consumer products including infant bedding, toddler bedding, diaper bags, bibs, toys, and disposable products. The Company primarily operates through its wholly owned subsidiaries, NoJo Baby & Kids, Inc. and Sassy Baby, Inc., which market a variety of infant, toddler, and juvenile products under Company-owned trademarks (Sassy®, NoJo®, Manhattan Toy®, Baby Boom® and Neat Solutions®), as well as licensed collections and exclusive private label programs. Sales are made directly to retailers such as mass merchants, large chain stores, juvenile specialty stores, value channel stores, grocery and drug stores, restaurants, wholesale clubs, internet-based retailers and direct-to-consumers through the Company’s websites. For more information, visit www.crowncrafts.com.

Forward-Looking Statements
The foregoing contains forward-looking statements within the meaning of the Securities Act of 1933, the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Such statements are based upon management’s current expectations, projections, estimates and assumptions. Words such as “expects,” “believes,” “anticipates” and variations of such words and similar expressions identify such forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties that may cause future results to differ materially from those suggested by the forward-looking statements. These risks include, among others, general economic conditions, including the impact of increased U.S. tariffs and any retaliatory measures by impacted exporting countries, the Company’s ability to mitigate the impact of such tariffs, changes in interest rates, in the overall level of consumer spending and in the price of oil, cotton and other raw materials used in the Company’s products, changing competition, changes in the retail environment, the Company’s ability to successfully integrate newly acquired businesses, the level and pricing of future orders from the Company’s customers, the extent to which the Company’s business is concentrated in a small number of customers, the Company’s dependence upon third-party suppliers, including some located in foreign countries, customer acceptance of both new designs and newly-introduced product lines, actions of competitors that may impact the Company’s business, disruptions to transportation systems or shipping lanes used by the Company or its suppliers, and the Company’s dependence upon licenses from third parties. Reference is also made to the Company’s periodic filings with the Securities and Exchange Commission for additional factors that may impact the Company’s results of income and financial condition. The Company does not undertake to update the forward-looking statements contained herein to conform to actual results or changes in our expectations, whether as a result of new information, future events or otherwise.

Contact:
Claire Spencer
Vice President and Chief Financial Officer
Investor@crowncrafts.com 

CROWN CRAFTS, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
THREE- AND SIX-MONTH PERIODS ENDED SEPTEMBER 27, 2026 AND SEPTEMBER 28, 2025
(amounts in thousands, except per share amounts)
		Three-Month Periods Ended						Six-Month Periods Ended
		September 27, 2026		September 28, 2025				September 27, 2026			September 28, 2025
Net sales	$	19,028	$	23,695			$	35,794		$	39,173
Cost of products sold		12,945		17,124				21,680			29,084
Gross profit		6,083		6,571				14,114			10,089
Marketing and administrative expenses		4,519		4,708				9,751			9,425
Income (loss) from operations		1,564		1,863				4,363			664
Other income (expense):
Interest expense - net of interest income		72		(287	)			(118	)		(570	)
Other income - net		150		4				315			103
Income (loss) before income tax expense		1,786		1,580				4,560			197
Income tax expense (benefit)		469		423				1,183			144
Net income (loss)	$	1,317	$	1,157			$	3,377		$	53
Weighted average shares outstanding:
Basic		10,815		10,634				10,787			10,602
Diluted		10,815		10,634				10,787			10,602
Earnings (loss) per share - basic and diluted	$	0.12	$	0.11			$	0.31		$	0.01
See notes to condensed consolidated financial statements.

CROWN CRAFTS, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
SEPTEMBER 27, 2026 AND MARCH 29, 2026
(amounts in thousands, except share and per share amounts)
		September 27, 2026				March 29, 2026
ASSETS
Current assets:
Cash and cash equivalents	$	426			$	200
Accounts receivable - net of allowances of $1,598 and $1,521, respectively
Due from factor		12,754				16,280
Other		2,703				2,579
Inventories		28,387				28,365
Other current assets		22				-
Prepaid expenses		2,117				2,176
Total current assets		46,409				49,600
Operating lease right of use assets		8,053				8,956
Property, plant and equipment - net of accumulated depreciation of $5,625 and $5,775, respectively		1,901				2,011
Intangible assets - net of accumulated amortization of $11,301 and $11,615, respectively		5,902				6,275
Deferred income taxes		3,565				3,657
Other assets		147				154
Total Assets	$	65,977			$	70,653
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	7,368			$	4,913
Accrued royalties		430				532
Dividends payable		434				952
Operating lease liabilities, current		4,313				4,198
Accrued liabilities		1,957				1,283
Current maturities of long-term debt		1,991				1,991
Total current liabilities		16,493				13,869
Non-current liabilities:
Long-term debt		3,314				12,132
Operating lease liabilities, noncurrent		4,449				5,529
Reserve for unrecognized tax liabilities		357				310
Total non-current liabilities		8,120				17,971
Shareholders' equity:
Common stock - $0.01 par value per share; Authorized 40,000,000 shares at September 27, 2026 and March 29, 2026; Issued 13,791,433 and 13,674,249 shares at September 27, 2026 and March 29, 2026		138				137
Additional paid-in capital		59,775				59,402
Treasury stock - at cost - 2,919,637 and 2,913,962 shares at September 27, 2026 and March 29, 2026		(15,906	)			(15,889	)
Accumulated deficit		(2,643	)			(4,837	)
Total shareholders' equity		41,364				38,813
Total Liabilities and Shareholders' Equity	$	65,977			$	70,653
See notes to condensed consolidated financial statements.

GAAP to Non-GAAP Reconciliation
CROWN CRAFTS, INC. AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES
(Unaudited) (Amounts in thousands)
			Three-Month Periods Ended							Six-Month Periods Ended
			September 27, 2026			September 28, 2025				September 27, 2026			September 28, 2025
Gross profit		$	6,083		$	6,571			$	14,114		$	10,089
Adjustments for items:
Tariff refunds (1)			(449	)		-				(4,224	)		-
Severance expense (2)			236			-				236			-
Adjusted gross profit		$	5,870		$	6,571			$	10,126		$	10,089
Gross Margin (3)			32.0	%		27.7	%			39.4	%		25.8	%
Adjusted Gross Margin (4)			30.9	%		-				28.3	%		-

(1	)	The International Emergency Economic Powers Act tariffs were recently deemed illegal by the U.S. Supreme Court ruling issued on February 20, 2026. This amount of tariff expense was refunded during the three months and six months ended September 27, 2026 and recorded to cost of products sold.
(2	)	Severance expense of $236 thousand was recorded during the three and six months ended September 27, 2026.
(3	)	Gross margin is calculated by dividing gross profit by net sales.
(4	)	Adjusting gross margin is calculated by dividing adjusted gross profit by net sales.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Crown Crafts' second-quarter fiscal 2027 earnings and sales?

Crown Crafts reported $1.317 million in net income and $19.028 million in sales for the quarter ended September 27, 2026. A year earlier, net income was $1.157 million and sales were $23.695 million. Diluted earnings per share increased to $0.12 from $0.11.

When will Crown Crafts pay its declared quarterly dividend?

Crown Crafts will pay its $0.03 per-share quarterly cash dividend on Series A common stock on January 4, 2027. Stockholders must be holders of record at the close of business on December 11, 2026.