Crown Crafts reported first-quarter fiscal 2027 net sales of $16.8 million, up 8.3% from $15.5 million a year earlier, while net income swung to $2.1 million, or $0.19 per share, from a net loss of $1.1 million, or $0.10 per share, in the prior-year quarter. Gross profit rose 128.3% to $8 million from $3.5 million, with reported gross margin expanding to 47.9% from 22.7%, driven by $3.7 million of tariff refunds recorded as a reduction to cost of products sold. Sales of bibs, toys and disposable products increased 23.6% to $10.7 million, while bedding and diaper bag sales declined 11.2% to $6 million. Management cited soft consumer demand amid high interest rates, inflation and geopolitical uncertainty, but said improved inventory availability accounted for most of the sales growth, and highlighted strategic pricing and a more favorable product mix as contributors to adjusted gross-margin expansion. The board reduced the quarterly dividend to $0.03 per share to retain cash for growth initiatives, debt reduction and an approximately 18-month warehouse consolidation project targeted for May 2028.
Crown Crafts IncQ1 earnings beat but dividend cut to $0.03 and soft demand outlook weigh on stock.
