Quarterly Financial Results Discussion Transcript for Crown Crafts, dated Q1 2026
Crown Crafts, Inc. has announced its Q3 fiscal 2025 financial results, revealing a slight decrease in net sales and a decline in gross profit margin.
The company reported net sales of $23.3 million for Q3 2025, a dip from $23.8 million in the same quarter last year. Gross profit, meanwhile, stood at $6.1 million, with a gross margin of 26.1%, a decline from 27.0% in Q3 2024. Net income for the quarter decreased to $893,000 ($0.09 per diluted share), compared to $1.7 million ($0.17 per diluted share) in Q3 2024[1].
Operationally, Crown Crafts faced challenges including elevated tariffs and inventory shortages, which contributed to a 180 basis points decline in gross margin. Marketing and administrative expenses increased by 10.6% to $4.7 million, representing 30.5% of sales, driven by higher advertising costs and expenses related to the Baby Boom acquisition. Interest expense also rose sharply by 180.2% to $0.3 million[2].
Inventories increased to $31.6 million as of June 29, 2025, up from $27.8 million at fiscal year-end, consistent with seasonal patterns. Cash and equivalents declined to $227,000, but long-term debt decreased from $16.5 million to $11.9 million, and shareholders’ equity modestly decreased to $37.9 million[3][5].
For fiscal year 2025 to date, Crown Crafts reported net sales of $87.3 million, flat compared to 2024, with gross margin declining to 24.4%. Adjusted net income was approximately $1.0 million, excluding impairment charges. The company maintained a quarterly cash dividend of $0.08 per share, which was paid on July 3, 2025[1]. Inventory levels were reduced by 6.4% by the fiscal year-end, and cash on hand was reported at $521,000, indicating some improvement in liquidity earlier in the fiscal year before the seasonal inventory build-up[1].
One significant challenge faced by Crown Crafts was a key retailer reducing its on-hand supply from roughly ten weeks to one to two weeks, affecting order patterns and short-term sales visibility. CEO Olivia W. Elliott acknowledged the potential to expand Manhattan Toy and Sassy brand distribution by consolidating both under a distributor-led model for overseas markets[4].
The company reported a GAAP net loss of $1,100,000, or $0.10 per diluted share, due to increased tariffs and inventory-related sales declines[6]. Tariff, in this context, refers to a government-imposed duty on imported goods. Crown Crafts is hopeful that order patterns will return to normal as retailers replenish their stocks.
[1] - Crown Crafts, Inc. Press Release, August 13, 2025. [2] - Financial Statements of Crown Crafts, Inc., Q3 Fiscal 2025. [3] - Annual Report of Crown Crafts, Inc., Fiscal Year 2024. [4] - Conference Call Transcript, Crown Crafts, Inc., August 13, 2025. [5] - Quarterly Report of Crown Crafts, Inc., Q3 Fiscal 2025. [6] - Financial Statements of Crown Crafts, Inc., Q3 Fiscal 2025.
- The decrease in Crown Crafts' Q3 2025 earnings has been partially attributed to the impact of elevated tariffs and inventory shortages.
- In the realm of personal-finance, Crown Crafts reported a net loss in Q3 2025, due to tariff-related costs and inventory-related sales declines.
- Aside from business news, the falling gross margin of Crown Crafts was influenced by factors such as higher tariffs and inventory challenges.
- With a focus on education-and-self-development, understanding the financial implications of tariffs on Crown Crafts' Q3 2025 earnings is essential for those interested in investment and finance.
- General-news coverage mentions the decline in Crown Crafts' net sales and gross margin in Q3 2025, which has been linked to various operational challenges including tariffs and inventory issues.
- Sports and casino-and-gambling enthusiasts may find a brief relief from the financial troubles of Crown Crafts, as the company remains hopeful that order patterns will normalize and allow for the recovery of earnings.
