Crown Crafts (NASDAQ:CRWS) Posts Earnings Results, Beats Expectations By $0.05 EPS

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

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 Stock Performance

CRWS stock traded down $0.07 during trading on Wednesday, hitting $2.97. 113,489 shares of the company traded hands, compared to its average volume of 40,650. Crown Crafts has a 1 year low of $2.35 and a 1 year high of $3.17. The company has a market cap of $31.96 million, a PE ratio of 16.50 and a beta of 0.64. The stock’s 50-day simple moving average is $2.91 and its 200 day simple moving average is $2.85. The company has a debt-to-equity ratio of 0.31, a current ratio of 3.58 and a quick ratio of 1.53.

Institutional Investors Weigh In On Crown Crafts

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. LPL Financial LLC acquired a new position in shares of Crown Crafts during the 4th quarter worth approximately $477,000. XTX Topco Ltd acquired a new stake in Crown Crafts in the 4th quarter valued at $32,000. Mariner LLC acquired a new stake in Crown Crafts in the 4th quarter valued at $28,000. Geode Capital Management LLC grew its stake in Crown Crafts by 5.7% in 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 during the period. Finally, Empowered Funds LLC increased its holdings 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 in the last quarter. Institutional investors and hedge funds own 30.23% of the company’s stock.

Analyst Ratings Changes

Separately, Weiss Ratings raised shares of Crown Crafts from a “sell (d)” rating to a “hold (c-)” rating in a report on Friday, June 26th. One research analyst has rated the stock with a Hold rating, According to MarketBeat, the stock presently has a consensus rating of “Hold”.

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.