Crown Crafts (CRWS) Q2 2027 earnings summary

Executive summary

• Q2 FY2027 sales fell 19.7% YoY to $19.028M, while net income rose 13.8% to $1.317M and gross margin expanded to 32.0%.

• H1 sales declined 8.6% to $35.794M; net income rose to $3.377M from $53K, largely reflecting tariff refund benefits.

• Priorities include improving profitability and efficiency, developing higher-margin products and channels, and building on Groovy Girls’ reception in Canada.

Financial highlights

• Q2 net sales were $19.028M vs. $23.695M; gross profit was $6.083M vs. $6.571M, and operating income was $1.564M vs. $1.863M YoY.

• Q2 net income was $1.317M vs. $1.157M; diluted EPS was $0.12 vs. $0.11. H1 diluted EPS was $0.31 vs. $0.01.

• H1 operating income was $4.363M vs. $664K; net sales were $35.794M vs. $39.173M.

Outlook and guidance

• No forward-looking quarterly sales guidance was offered; management attributed a significant portion of the Q2 decline to the unusually strong year-ago comparison.

• Priorities include higher-margin products and sales channels, marketing programs, operational efficiencies, and warehouse consolidation.

• Warehouse consolidation is targeted for April–May 2028; a plan announcement may accompany FY year-end results in June.

• Operating cash flow and available revolving credit are expected to be adequate for liquidity needs.