Crown Crafts 2026 Q2 Earnings Net Income Surges 34.5% Amid Revenue Decline

Crown Crafts (CRWS) reported fiscal 2026 Q2 results on Nov 12, 2025, with net income rising 34.5% to $1.16 million, outpacing expectations, while revenue dipped 3.1% to $23.70 million. The CEO provided no explicit guidance but emphasized cost discipline and operational adjustments to offset tariff impacts.

Revenue

Total revenue fell to $23.70 million in Q2 2026 from $24.46 million in Q2 2025, driven by a $1.6 million decline in bedding and diaper bag sales. Bibs, toys, and disposable products offset this partially, contributing $13.29 million. Bedding and diaper bags accounted for $10.41 million, while bibs, toys, and disposable products drove the remaining segment.

Earnings/Net Income

Earnings per share (EPS) surged 37.5% to $0.11, and net income climbed to $1.16 million, reflecting disciplined cost management and reduced marketing/admin expenses. The performance underscores the company’s ability to strengthen profitability despite revenue headwinds.

Post-Earnings Price Action Review

The stock price of Crown Crafts has declined 4.48% in the latest trading day and 2.81% month-to-date. A strategy of buying shares post-earnings and selling 30 days later yielded a $15,384.46 return from a $10,000 investment over three years, highlighting short-term growth potential.

CEO Commentary

Olivia Elliott emphasized resilience amid elevated tariffs and supply chain volatility, citing cost reductions, operational consolidation, and synergies from prior acquisitions. She expressed cautious optimism about international expansion and product development while acknowledging slower-than-expected ad returns.

Guidance

The company outlined qualitative plans to maintain cost prudence, adapt to tariff challenges, and leverage international growth. Savings from operational consolidation are expected to materialize by late Q1 2027.

Additional News

Crown Crafts announced a $0.08 per share quarterly dividend, payable Jan 2, 2026, to shareholders of record by Dec 12. The firm also initiated operational consolidation to cut redundant costs and payroll expenses. CFO Claire Spencer highlighted $0.7 million in reduced marketing/admin expenses, contributing to improved profitability.