Crown Crafts 2025 Q4 Earnings Misses Targets as Net Income Plummets 1174.4%

Crown Crafts (CRWS) reported its fiscal 2025 Q4 earnings on June 25th, 2025. Crown Crafts faced significant challenges in fiscal Q4 2025, with results missing expectations due to a substantial goodwill impairment charge. The company is navigating significant tariff impacts and persistent inflation, affecting consumer spending. Guidance was adjusted to project additional tariffs, impacting projected sales and market share. Despite setbacks, Crown Crafts is focusing on strategic acquisitions and expanded e-commerce capabilities to drive future growth.
Revenue
The total revenue of Crown Crafts increased by 2.9% to $23.23 million in 2025 Q4, up from $22.58 million in 2024 Q4.
Earnings/Net Income
Crown Crafts swung to a loss of $1.02 per share in 2025 Q4 from a profit of $0.10 per share in 2024 Q4 (1148.0% negative change). Meanwhile, the company reported a net loss of $-10.79 million in 2025 Q4, reflecting a 1174.4% deterioration from the net income of $1 million achieved in 2024 Q4. This reflects a significant negative impact on earnings per share.
Price Action
The stock price of Crown Crafts has tumbled 11.25% during the latest trading day, has tumbled 8.97% during the most recent full trading week, and has tumbled 13.18% month-to-date.
Post-Earnings Price Action Review
The strategy of purchasing Crown Crafts (CRWS) shares after a quarter with a revenue drop on the financial report release date and holding for 30 days has proven ineffective. This approach resulted in a poor strategy with a compound annual growth rate (CAGR) of -16.25%, translating to an overall return of -41.06% and an excess return of -98.15%. Moreover, the strategy faced a significant maximum drawdown of -52.17%, indicating substantial risk and negative returns. The Sharpe ratio stands at -0.66, further emphasizing the unfavorable risk-return profile of this investment approach.

CEO Commentary
Olivia Elliott - CEO, President & Director, remarked that fiscal 2025 was a transitional year, with total sales slightly below last year due to persistent inflation affecting consumer discretionary spending and uncertainties surrounding U.S. tariff policy. Despite these challenges, Elliott emphasized a focus on innovation and strategic acquisitions, including Baby Boom Consumer Products, to strengthen market position and drive future growth. She highlighted the company's financial health, noting adequate cash flow of $9.8 million and reduced inventories. Looking ahead, she acknowledged the pressing challenge of navigating tariffs while remaining optimistic about the company's long-term success through expanded product offerings and e-commerce capabilities.
Guidance
Crown Crafts expects to navigate significant tariff impacts, projecting that goods will incur an additional 30% tariff. While specific quantitative targets were not outlined, the leadership anticipates exploring ways to mitigate these costs and plans to focus on product and channel expansions to increase sales and market share. The company plans to provide updates on progress and performance in the upcoming fiscal year, particularly in Q1 earnings in mid-August.
Additional News
Crown Crafts has recently completed the acquisition of Baby Boom Consumer Products, aiming to bolster its product offerings and market presence. The acquisition is part of Crown Crafts' strategic initiatives to drive growth amidst challenging economic conditions. Furthermore, the company declared a quarterly cash dividend of $0.08 per share for its Series A common stock, maintaining shareholder returns despite fiscal strains. Lastly, Crown Crafts announced the closure of its subsidiary in the United Kingdom, reflecting its efforts to streamline operations and reduce costs. These moves indicate Crown Crafts' proactive approach to navigating current market challenges while positioning for future opportunities.