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Crown Crafts
(NASDAQ:CRWS)
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Rating:71Outperform
Price Target:
$3.00
▲(2.39% Upside)
Action:Upgraded
Date:08/17/26
The score is driven primarily by improved financial performance with solid cash generation and reduced leverage, supported by an attractive valuation (low P/E and high trailing dividend yield). This is moderated by softer near-term technical momentum and earnings-call caveats around demand softness and the non-recurring benefit from tariff refunds.
Positive Factors
Strong Cash Generation
Consistent positive operating and free cash flow supports self-funded investment, debt repayment and liquidity. Free cash flow closely tracks earnings, indicating that reported profitability is generally converting into usable cash.
Negative Factors
Soft Underlying Consumer Demand
Weak underlying consumption can limit retailer orders and make revenue growth dependent on inventory normalization rather than end-market expansion. Persistent pressure could reduce operating leverage and constrain the benefits of cost control.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Cash Generation
Consistent positive operating and free cash flow supports self-funded investment, debt repayment and liquidity. Free cash flow closely tracks earnings, indicating that reported profitability is generally converting into usable cash.
Read all positive factors
Crown Crafts (CRWS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$31.20M
Dividend Yield11.15%
Average Volume (3M)35.20K
Price to Earnings (P/E)6.2
Beta (1Y)0.51
Revenue Growth-3.42%
EPS GrowthN/A
CountryUS
Employees149
SectorConsumer Cyclical
Sector Strength84
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)0.47
Shares Outstanding10,760,287
10 Day Avg. Volume21,543
30 Day Avg. Volume35,197
Financial Highlights & Ratios
PEG Ratio-0.13
Price to Book (P/B)0.70
Price to Sales (P/S)0.33
P/FCF Ratio3.29
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Crown Crafts Business Overview & Revenue Model
Company Description
Crown Crafts, Inc. (CRWS) operates globally through its subsidiaries, making it a key player in the consumer goods market. The company specializes in a diverse array of merchandise designed for infants, toddlers, and young children. This extensive...
How the Company Makes Money
Crown Crafts primarily makes money by designing, sourcing/manufacturing (largely through third parties), and selling juvenile soft goods and related products to retail customers. Its core revenue stream is product sales, generally in the form of w...
Crown Crafts Earnings Call Summary
Earnings Call Date:Aug 12, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Nov 18, 2026
Earnings Call Sentiment Positive
The call presents a positive operational and financial execution story: revenue growth (+8%), expanded adjusted gross margin (+290 bps), return to profitability ($2.1M vs prior year loss), strong operating cash flow (~$5.5M), and meaningful debt reduction. However, several caveats temper the results: part of the margin and profit improvement was driven by tariff refunds ($3.7M booked benefit with ~$900K still outstanding), consumer demand remains soft, absolute SG&A increased, and certain product initiatives are still nascent. On balance, the highlights — including restored profitability, cash generation, margin expansion and deleveraging — outweigh the lowlights, supporting a positive near-term outlook while acknowledging execution and macro risks.Positive Updates
Revenue Growth
Net sales of $16.8 million, up 8% year-over-year, driven largely by improved inventory levels enabling the company to better meet demand.
Negative Updates
Soft Consumer Demand Environment
Management cited ongoing soft demand driven by high interest rates, inflation, and global geopolitical uncertainty; revenue growth was aided by inventory improvements rather than stronger underlying consumption.
Read all updates
Q1-2027 Updates
Positive
Negative
Revenue Growth
Net sales of $16.8 million, up 8% year-over-year, driven largely by improved inventory levels enabling the company to better meet demand.
Read all positive updates
Company Guidance
Management guided that it will prioritize top- and bottom-line growth through internal product development, margin expansion (targeting a favorable mix of higher‑margin products) and strict cost discipline while reallocating capital to pay down debt and invest in growth — highlighted actions include rightsizing the quarterly dividend to preserve cash (now yielding ~4%), an ~18‑month warehouse consolidation project slated to complete around May 2028, and limited FY27 capex (mainly IT/ERP upgrades and molds). They said they will deploy strong cash generation (Q1 net cash from ops $5.5M; total liquidity $12.1M) to reduce leverage (debt down from >$14M to $9.6M in Q1) and noted expected additional tariff reimbursements (requested $5.6–$5.7M; $4.7M received, ~$0.9M pending). Near‑term commercial guidance includes continued Groovy Girls expansion (strong Canada results, K&J Germany launch in September, partial Amazon launch targeted in October). These plans rest on recent results: Q1 net sales $16.8M (+8% y/y), adjusted gross margin 25.6% (+290 bps y/y), GAAP net income $2.1M ($0.19/share), marketing & admin ~$5.2M (normalized to 28% of sales), and net interest expense ~$0.19M.Crown Crafts Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
64
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 83.55M | 82.27M | 87.25M | 87.63M | 75.05M | 87.36M |
| Gross Profit | 24.40M | 20.08M | 20.49M | 23.00M | 19.83M | 23.31M |
| EBITDA | 9.43M | 6.90M | -4.76M | 8.68M | 8.63M | 11.81M |
| Net Income | 5.01M | 1.84M | -9.36M | 4.89M | 5.65M | 9.92M |
Balance Sheet | ||||||
| Total Assets | 68.54M | 70.65M | 81.15M | 82.71M | 90.97M | 60.16M |
| Cash, Cash Equivalents and Short-Term Investments | 194.00K | 200.00K | 521.00K | 829.00K | 1.74M | 1.60M |
| Total Debt | 19.39M | 23.85M | 31.60M | 23.84M | 29.99M | 2.64M |
| Total Liabilities | 28.33M | 31.84M | 41.53M | 31.11M | 41.76M | 14.35M |
| Stockholders Equity | 40.22M | 38.81M | 39.62M | 51.60M | 49.21M | 45.80M |
Cash Flow | ||||||
| Free Cash Flow | 7.60M | 8.26M | 9.75M | 6.30M | 6.92M | 7.73M |
| Operating Cash Flow | 8.53M | 8.27M | 9.82M | 7.08M | 7.74M | 8.26M |
| Investing Cash Flow | -934.00K | -864.00K | -17.17M | -193.00K | -16.91M | -490.00K |
| Financing Cash Flow | -7.63M | -7.73M | 7.04M | -7.80M | 9.32M | -6.79M |
Crown Crafts Technical Analysis
Negative
2.93
Price Trends
2.94
Negative
2.82
Positive
2.73
Positive
Market Momentum
>-0.01
Positive
46.84
Neutral
57.30
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRWS, the sentiment is Negative. The current price of 2.93 is below the 20-day moving average (MA) of 2.95, below the 50-day MA of 2.94, and above the 200-day MA of 2.73, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 46.84 is Neutral, neither overbought nor oversold. The STOCH value of 57.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CRWS.
Crown Crafts Risk Analysis
Crown Crafts disclosed 21 risk factors in its most recent earnings report. Crown Crafts reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Crown Crafts Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $31.20M | 6.16 | 12.79% | 12.12% | -3.42% | ― | |
69 Neutral | $595.70M | 15.04 | 8.40% | 7.93% | -5.72% | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | $1.27B | 5.82 | 21.32% | 1.79% | -8.20% | 53.01% | |
56 Neutral | $235.24M | 61.50 | 1.88% | ― | 1.54% | -70.61% | |
43 Neutral | $1.31B | 16.34 | 7.86% | 2.38% | 0.20% | -10.08% | |
40 Underperform | $19.58M | -0.38 | 107.92% | ― | -0.74% | 42.52% |
* Consumer Cyclical Sector Average
CRWS
Crown Crafts
2.87
0.19
7.05%
ETD
Ethan Allen
23.47
-3.75
-13.79%
LZB
La-Z-Boy Incorporated
32.57
-3.47
-9.62%
LEG
Leggett & Platt
9.20
-0.18
-1.90%
PRPL
Purple Innovation
4.28
-24.72
-85.24%
LOVE
The Lovesac Company
15.99
-3.14
-16.41%
Crown Crafts Corporate Events
Business Operations and StrategyExecutive/Board ChangesDividendsFinancial DisclosuresShareholder Meetings
Crown Crafts Posts Strong Q1 Results, Adjusts Dividend
Positive
Aug 12, 2026
At its August 10, 2026 annual meeting, Crown Crafts’ shareholders elected Ixchell C. Duarte and Tatiana G. Ferreira as Class III directors to serve until 2029, approved an amended and restated 2021 incentive plan, and ratified KPMG LLP as in...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.