Crown Crafts Faces Fiscal Challenges Amid Fourth Quarter Losses

2025-06-25 companies

Los Angeles, Wednesday, 25 June 2025.
Crown Crafts reported a fiscal 2025 net loss of $9.4 million, primarily due to a $13.8 million goodwill impairment charge, yet managed a slight revenue increase in Q4.

Fourth Quarter Financial Summary

In the fourth quarter of fiscal 2025, Crown Crafts, Inc. (NASDAQ: CRWS) reported a significant GAAP net loss of $10.8 million, translating into a loss of $1.04 per diluted share. Despite this, the company showed adjusted net losses of $429,000 or $0.04 per diluted share, after accounting for an impactful $13.8 million goodwill impairment charge [1][2][3]. This adjustment was critical in providing a clearer picture of the company’s financial health, beyond the immediate losses.

Year-End Financial Overview

For the entire fiscal year ending March 30, 2025, Crown Crafts faced a GAAP net loss of $9.4 million, or $0.90 per diluted share. The adjusted net income, excluding the goodwill charge, stood at $1.0 million, or $0.10 per diluted share. Total net sales were comparatively stagnant at $87.3 million, closely aligning with the fiscal 2024 results [1][4][6]. CEO Olivia Elliott noted the strategic initiatives laid for future growth amid current economic strains [1][2][4].

Revenue and Market Conditions

Crown Crafts managed to achieve a revenue of $23.2 million for the fourth quarter, marking a 2.9% increase from the same quarter in the previous year. However, this was tempered by a decrease in gross margins to 18.3%, down from 23.2% year-on-year [2][3]. The losses were heavily influenced by external economic factors, including tariffs and close-out sales at lower margins, which impacted profitability despite revenue growth [1][3][5].

Strategic Outlook

Looking ahead, Crown Crafts maintains a cautious yet optimistic outlook, continuing its $0.08 dividend per share for Series A common stock, reflective of strategic fiscal discipline. The uncertainty in consumer markets and the continued economic headwinds have presented challenges to traditional sales channels such as Walmart and Amazon, which, together, constitute a major portion of the company’s sales revenue [1][4][5]. Nonetheless, Crown Crafts is poised to leverage its robust partnerships and expand product lines to counterbalance market risks [1][6].

Sources

Crown Crafts fiscal loss