Crown Crafts, Inc. reported a decrease in net sales for the fiscal year ending March 29, 2026, with total revenues of $82.3 million, down 5.7% from $87.3 million in the previous fiscal year. The decline was primarily attributed to a $6.1 million drop in sales of bedding and diaper bags, which was partially offset by a $1.1 million increase in sales of bibs, toys, and disposable products. The company faced inventory shortages due to its strategy to mitigate the impact of increased tariffs, which negatively affected sales during the first quarter of the fiscal year.
Gross profit also saw a decline, decreasing by $1.2 million to $20.1 million, maintaining a margin of 24.4% of net sales. The decrease in gross profit was largely due to increased tariff costs associated with products imported from China. Marketing and administrative expenses rose slightly by $289,000, increasing from 21.4% to 23.1% of net sales, driven by higher advertising costs. However, the company reported a net income of $1.8 million, a significant recovery from a net loss of $9.4 million in the prior year, largely due to $2.5 million in insurance proceeds related to a previous acquisition.
Crown Crafts operates through its subsidiaries, NoJo Baby & Kids, Inc. and Sassy Baby, Inc., focusing on the infant, toddler, and juvenile products segment. The company’s customer base includes major retailers such as Walmart and Amazon, which accounted for approximately 57% of gross sales in fiscal year 2026. The company’s sales to international customers represented 9% of total gross sales, up from 8% in the previous year. As of March 29, 2026, Crown Crafts employed 149 full-time staff, with no union representation.
Looking ahead, Crown Crafts anticipates challenges due to ongoing macroeconomic conditions, including inflation and changing consumer preferences. The company is closely monitoring the impact of tariffs on its operations, particularly following a recent Supreme Court ruling that deemed certain tariffs illegal. The company has submitted requests for refunds related to these tariffs, although the timing and amount of potential refunds remain uncertain. Crown Crafts aims to adapt its business strategies to navigate these challenges while continuing to focus on product innovation and customer engagement.
About CROWN CRAFTS INC
Crown Crafts, Inc. designs, manufactures, and markets infant, toddler, and juvenile products, including bedding, toys, bibs, and accessories. Operating through subsidiaries, it serves mass merchants, specialty stores, and online retailers primarily in the U.S., with some international sales. The company relies on licensed brands, foreign manufacturing, and a direct sales model, competing on quality, design, and price within a highly competitive industry.
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