Crown Crafts (CRWS) Q4 2026 earnings summary

Executive summary

• Q4 net sales were $22.4 million, nearly flat year-over-year, with full-year net sales at $82.3 million, down from $87.3 million in FY25.

• Gross margin improved to 22.9% in Q4, up 460 basis points from the prior year, driven by strategic pricing and favorable product mix.

• Net income for Q4 was $0.3 million, reversing a prior-year loss due to a non-cash goodwill impairment; full-year net income was $1.8 million.

• Operating cash flow exceeded $8 million for the fiscal year, supporting growth initiatives.

Financial highlights

• Q4 gross profit was $5.1 million, with a margin of 22.9%, up from 18.3% a year ago.

• Interest expense reduced to $194,000 in Q4 from $333,000 in the prior year, reflecting lower debt.

• Basic and diluted EPS for Q4 were $0.03, up from a loss of $1.04 per share in the prior year; full-year diluted EPS was $0.17, up from $(0.90).

• Year-end inventories were $28.4 million, slightly higher than $27.8 million at the end of fiscal 2025.

• Marketing and administrative expenses held flat at $4.6 million for the quarter.

Outlook and guidance

• Management expects further gross margin expansion as sales grow and cost initiatives continue.

• Focus remains on innovative product development, margin expansion, and disciplined spending to enhance long-term stockholder value.

• No significant changes anticipated in the tariff environment; outlook remains stable.