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

Crown Crafts (CRWS) reported fiscal 2026 Q2 earnings on Nov 12th, 2025, with net income rising 34.5% to $1.16 million (EPS up 37.5% to $0.11) despite a 3.1% revenue decline to $23.70 million. The company cited cost reductions and operational efficiencies as key drivers of profitability.

Revenue

Crown Crafts’ total revenue fell to $23.70 million in 2026 Q2, a 3.1% decrease from $24.46 million in the prior year. The bedding and diaper bags segment reported $10.41 million, while bibs, toys, and disposable products contributed $13.29 million. The decline in bedding and diaper bags sales—down $1.6 million—was partially offset by growth in the latter category.

Earnings/Net Income

The company’s EPS surged 37.5% to $0.11, and net income grew 34.5% to $1.16 million. Cost management initiatives, including reduced marketing and administrative expenses, drove profitability. The EPS increase reflects improved margins despite revenue contraction.

Post-Earnings Price Action Review

The strategy of buying Crown Crafts shares on earnings announcement dates and holding for 30 days historically yielded 12.5% average gains over three years. However, recent volatility, including a brief post-earnings dip, highlights short-term risks. While the long-term trend remains positive, investors should monitor market conditions and company-specific factors affecting near-term performance.

CEO Commentary

CEO Olivia Elliott emphasized resilience amid tariffs, supply chain challenges, and margin pressures. She highlighted operational consolidation (e.g., merging subsidiaries Sassy and NoJo) and cost-cutting efforts. Elliott expressed cautious optimism, noting progress in product innovation and international expansion, though diaper bag sales remain pressured by tariffs.

Guidance

Crown Crafts did not provide explicit forward-looking financial targets. Management reiterated a focus on cost control, operational synergies, and navigating macroeconomic uncertainties.

Additional News

Crown Crafts announced operational consolidation to cut costs, including merging subsidiaries to eliminate redundancies. The company declared a $0.08 per share quarterly dividend, payable on January 2, 2026. CEO Olivia Elliott noted ongoing challenges from tariffs but highlighted progress in modernizing diaper bag designs and exploring alternative sourcing.