The ceremony will be held at the Nasdaq MarketSite in Times Square and will be broadcast live starting at 3:45 p.m. Eastern Standard Time on February 13, 2026. A live stream of the Nasdaq Closing Bell will be available at: https://www.nasdaq.com/marketsite/bell-ringing-ceremony

About Crown Crafts, Inc.

Crown Crafts, Inc. designs, markets and distributes infant, toddler and juvenile consumer products. Founded in 1957, Crown Crafts is one of America’s largest producers of infant bedding, toddler bedding, diaper bags, bibs, toys and disposable products. The Company operates through its wholly owned subsidiaries, NoJo Baby & Kids, Inc. and Sassy Baby, Inc., which market a variety of infant, toddler, and juvenile products under Company-owned trademarks (Sassy®, Manhattan Toy®, NoJo®, Baby Boom® and Neat Solutions®), as well as licensed collections and exclusive private label programs. Sales are made directly to retailers such as mass merchants, large chain stores, juvenile specialty stores, value channel stores, grocery and drug stores, restaurants, wholesale clubs, internet-based retailers and directly to consumers through the Company’s websites. For more information visit the Company’s website at www.crowncrafts.com.

Third Quarter Summary

• Net sales of $20.7 million compared with $23.4 million in the prior-year quarter.
• Gross profit margin of 23.5% compared with 26.1% in the prior-year quarter.
• Net income of $1.5 million increased from $0.9 million in the prior-year quarter.
• Subsequent to the quarter, announced Manhattan Toy’s relaunch of Groovy Girls, an iconic line of soft fashion dolls that will be available starting in May of 2026.
• Declared a quarterly dividend of $0.08 per share of Series A common stock.
  

“We believe our third quarter results demonstrate the diligent efforts of our team and resilience of our business model as we work to overcome the challenging demand environment and the ongoing effects of higher tariffs,” said Olivia Elliott, President and Chief Executive Officer. “We are committed to driving profitability as we continue to execute on pricing and cost actions to offset the pressure on sales and are encouraged by the positive performance in our bibs, toys and disposable categories during the holiday season.”

“Looking ahead, we are thrilled to announce the relaunch of Manhattan Toy’s Groovy Girls and remain focused on what we can control – internal product development, driving mix toward higher-margin product, carefully managing expenses, and prudently managing our balance sheet,” added Ms. Elliott. “We continue to navigate an environment marked by uneven consumer spending and elevated tariffs, but we believe our brands, customer relationships and category positions have us well prepared to enhance long-term shareholder value as conditions normalize.”

Third Quarter Fiscal 2026 Results

Net sales were $20.7 million for the three-month period ended December 28, 2025, compared with $23.4 million for the three-month period ended December 29, 2024. Gross profit was $4.9 million compared to $6.1 million in the prior-year period, reflecting a gross margin of 23.5%, versus 26.1% of net sales for the same period in 2024.

Marketing and administrative expenses increased by $0.6 million to $5.0 million in the current-year quarter due to severance expenses incurred in connection with operational consolidation efforts. Other income benefitted by $2.5 million in the three-month period ended December 28, 2025 from insurance proceeds for claims made by the Company under a representation and warranties insurance policy purchased in connection with a recent acquisition. The net impact of the insurance proceeds, excluding certain legal and license related expenses, to income before income tax expense was $2.1 million.

Quarterly Cash Dividend

The Board of Directors declared a quarterly cash dividend on the Company’s Series A common stock of $0.08 per share, which will be paid on April 3, 2026 to stockholders of record at the close of business on March 13, 2026.

Conference Call

The Company will host a teleconference today at 8:00 a.m. CDT to discuss the Company’s results, during which interested individuals will be given the opportunity to ask appropriate questions. The teleconference can be accessed in listen-only mode by visiting the Company’s website at www.crowncrafts.com. The financial information to be discussed during the teleconference may be accessed prior to the call on the investor relations portion of the Company’s website.

To join the teleconference, dial (844) 861-5504 and ask to join the Crown Crafts call. A telephone replay of the teleconference will be available one hour after the end of the call through 4:00 p.m. CDT on May 11, 2026. To access the replay, dial (855) 669-9658 in the United States or (412) 317-0088 from international locations and enter replay access code 7393378.

About Crown Crafts, Inc.

Crown Crafts, Inc. designs, markets, and distributes infant, toddler, and juvenile consumer products. Founded in 1957, Crown Crafts is one of America’s largest producers of infant bedding, toddler bedding, diaper bags, bibs, toys, and disposable products. The Company primarily operates through its wholly owned subsidiaries, NoJo Baby & Kids, Inc. and Sassy Baby, Inc., which market a variety of infant, toddler, and juvenile products under Company-owned trademarks (Sassy®, NoJo®, Manhattan Toy®, Baby Boom® and Neat Solutions®.), as well as licensed collections and exclusive private label programs. Sales are made directly to retailers such as mass merchants, large chain stores, juvenile specialty stores, value channel stores, grocery and drug stores, restaurants, wholesale clubs, internet-based retailers and direct-to-consumers through the Company’s websites. For more information, visit the Company’s website at www.crowncrafts.com.

Forward-Looking Statements

The foregoing contains forward-looking statements within the meaning of the Securities Act of 1933, the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Such statements are based upon management’s current expectations, projections, estimates and assumptions. Words such as “expects,” “believes,” “anticipates” and variations of such words and similar expressions identify such forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties that may cause future results to differ materially from those suggested by the forward-looking statements. These risks include, among others, general economic conditions, including the impact of increased U.S. tariffs and any retaliatory measures by impacted exporting countries, the Company’s ability to mitigate the impact of such tariffs, changes in interest rates, in the overall level of consumer spending and in the price of oil, cotton and other raw materials used in the Company’s products, changing competition, changes in the retail environment, the Company’s ability to successfully integrate newly acquired businesses, the level and pricing of future orders from the Company’s customers, the extent to which the Company’s business is concentrated in a small number of customers, the Company’s dependence upon third-party suppliers, including some located in foreign countries, customer acceptance of both new designs and newly-introduced product lines, actions of competitors that may impact the Company’s business, disruptions to transportation systems or shipping lanes used by the Company or its suppliers, and the Company’s dependence upon licenses from third parties. Reference is also made to the Company’s periodic filings with the Securities and Exchange Commission for additional factors that may impact the Company’s results of operations and financial condition. The Company does not undertake to update the forward-looking statements contained herein to conform to actual results or changes in our expectations, whether as a result of new information, future events or otherwise.

GONZALES, Louisiana, Feb. 09, 2026 (GLOBE NEWSWIRE) -- Crown Crafts, Inc. (NASDAQ-CM: CRWS) (the “Company”) today announced that its Manhattan Toy® brand’s Groovy Girls, the iconic soft fashion dolls that sparked joy and self-expression for a generation, are back! Launching at the North American International Toy Fair, the new Groovy Girls collection features fresh designs and diverse characters that celebrate confidence, creativity, and inclusive play.

Originally introduced in the late 1990s, Groovy Girls quickly became a favorite for their bold styles, soft construction, wholesome play, and celebration of individuality. Now, they’re reimagined for today’s kids, and for the Millennial and Gen Z parents who remember the fun and funky originals. Each doll is uniquely designed with vibrant hairstyles, diverse skin tones, and fashion-forward outfits while still embracing the brand’s original soft, huggable form and groovy spirit.

“Groovy Girls have always been more than just dolls, they’re characters that kids connect with, stories waiting to be told,” said Kelly Anderson, Vice President of Marketing of Sassy Baby, Inc. (“Sassy”), a wholly-owned subsidiary of the Company. “We’ve designed this new collection to reflect the world kids see around them today - full of diversity, color, and possibility - while keeping the playful essence that made Groovy Girls so popular in the first place.”

The Groovy Girls doll collection includes five keepsake dolls, each with her own unique style and personality. Every posable soft doll features stylable hair, removable, fashionable outfits that are collectible, and new magnetic hands for interactive play. Dolls are crafted for children aged 3 to 6 with a suggested retail price of $29.99 each, and will be available starting May 2026:

• Rose: A star athlete and a total style icon! Whether she’s crossing the finish line or hanging out with her friends, she loves rocking outfits that move with her through every activity. She may not win every race, but she is always looking to grow, improve, and cheer on others along the way. With a competitive spirit and a love for teamwork, Rose is always ready to lift others up while chasing her own dreams!
  
  
• Saige: A sweetheart with endless energy and a soft spot for all things furry, Saige is always on the go – whether with her built-in bestie, her mom, or a four-legged friend. Dressed in comfy-cute leisure gear, she views every day as an adventure and smiles through life with confidence and charisma. From the playground to the dog park, Saige makes new friends wherever she goes.
  
  
• Poppy: Top of her class and always ready to lend a helping hand. Whether she's tutoring younger students or solving tricky homework problems, she's your go-to girl for answers and encouragement. Her signature schooltime-chic style is as polished as her report card and perfect for moving from the classroom to after-school fun with friends. With a passion for learning and a heart for helping others, Poppy is proof that smart is seriously stylish!
  
  
• Iris: All about fun, flair, and everything pink! She twirls through life in her favorite tutu, always ready for a spontaneous dance party filled with spins, leaps, and laughter. Her half-up hairstyle is tied with a sweet bow, keeping her look perfectly in place no matter where the day takes her. With a free spirit and a heart full of adventure, Iris brings her own sparkle to every moment because being bold, bright, and true to herself is what she does best!
  
  
• Daisy: With a heart as warm as the sunshine! Daisy spends her days tending flowers in her garden, making friends with the animals who stop by, and sharing the joy of nature with everyone she meets. Dressed in her favorite floral overalls and trusty rain boots, she’s always ready for a day filled with planting, creating, and enjoying the warmth of the sun. Whether she’s picking wildflowers for her friends or introducing them to her furry companions, Daisy feels most like herself when she’s connected to the world around her.
  
  

The new Groovy Girls doll collection, featuring (from left) Rose, Saige, Poppy, Iris, and Daisy,
will be available beginning in May 2026 at specialty retailers and manhattantoy.com.

In addition to the dolls, the Groovy Girl collection will feature a range of outfits and accessories that inspire creative, open-ended play. The accessory line includes funky fan favorites, including pets, camping gear, and furniture, along with some exciting new introductions – each with magnetic features compatible with the dolls to inspire interactive play. The Groovy Girls collection of dolls and accessories will be available at specialty retailers and manhattantoy.com.

The new Groovy Girls collection of dolls will make its debut at Toy Fair New York, February 14-17, in booth 2206 at the Javits Center. Attending media can contact Kelly Anderson, Vice President of Marketing, at kelly@manhattantoy.com to schedule an appointment.

About Manhattan Toy®

Manhattan Toy®, a brand of Sassy Baby, Inc., offers a wide variety of award-winning toys, dolls, plush, and wooden activity toys designed to help young children learn through the experience of play. We believe that play is essential for a child's cognitive, emotional, and social development and that imagination is the most powerful tool for play.

About Crown Crafts, Inc.

Crown Crafts, Inc. designs, markets and distributes infant, toddler and juvenile consumer products. Founded in 1957, Crown Crafts is one of America’s largest producers of infant bedding, toddler bedding, diaper bags, bibs, toys and disposable products. The Company operates through its wholly owned subsidiaries, NoJo Baby & Kids, Inc. and Sassy Baby, Inc., which market a variety of infant, toddler, and juvenile products under Company-owned trademarks (Sassy®, Manhattan Toy®, NoJo®, Baby Boom® and Neat Solutions®), as well as licensed collections and exclusive private label programs. Sales are made directly to retailers such as mass merchants, large chain stores, juvenile specialty stores, value channel stores, grocery and drug stores, restaurants, wholesale clubs, internet-based retailers and directly to consumers through the Company’s websites. For more information visit the Company’s website at www.crowncrafts.com.

Forward-Looking Statements

The foregoing contains forward-looking statements within the meaning of the Securities Act of 1933, the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Such statements are based upon management’s current expectations, projections, estimates and assumptions. Words such as “expects,” “believes,” “anticipates” and variations of such words and similar expressions identify such forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties that may cause future results to differ materially from those suggested by the forward-looking statements. These risks include, among others, general economic conditions, including the impact of newly imposed or threatened U.S. tariffs and any additional retaliatory measures by impacted exporting countries, and the Company’s ability to mitigate the impact of such tariffs; changes in interest rates, in the overall level of consumer spending and in the price of oil, cotton and other raw materials used in the Company’s products, changing competition, changes in the retail environment, the Company’s ability to successfully integrate newly acquired businesses, the level and pricing of future orders from the Company’s customers, the extent to which the Company’s business is concentrated in a small number of customers, the Company’s dependence upon third-party suppliers, including some located in foreign countries, customer acceptance of both new designs and newly-introduced product lines, actions of competitors that may impact the Company’s business, disruptions to transportation systems or shipping lanes used by the Company or its suppliers, and the Company’s dependence upon licenses from third parties. Reference is also made to the Company’s periodic filings with the Securities and Exchange Commission for additional factors that may impact the Company’s results of operations and financial condition. The Company does not undertake to update the forward-looking statements contained herein to conform to actual results or changes in our expectations, whether as a result of new information, future events or otherwise.

Contact:

Claire K. Spencer
Vice President and Chief Financial Officer
investor@crowncrafts.com

Images accompanying this announcement are available at:

https://www.globenewswire.com/NewsRoom/AttachmentNg/03a62325-854c-4827-be04-0c2b09750aa0

https://www.globenewswire.com/NewsRoom/AttachmentNg/89fb6fe8-51cd-4983-a871-a8d741608daf

https://www.globenewswire.com/NewsRoom/AttachmentNg/5a71c337-29aa-4dd8-b319-2a7f86ca9cf0

Groovy Girls

The new Groovy Girls doll collection, featuring (from left) Rose, Saige, Poppy, Iris, and Daisy, will be available beginning in May 2026 at specialty retailers and manhattantoy.com.

Groovy Girls

Groovy Girls

Manhattan Toys

Manhattan Toys

Interested individuals may join the teleconference by dialing (844) 861-5504 and asking to join the Crown Crafts, Inc. call. The teleconference can also be accessed in listen-only mode by visiting the Company’s website at www.crowncrafts.com. The financial information to be discussed during the teleconference may be found on the investor relations portion of the Company’s website after earnings are released.

A telephone replay of the teleconference will be available one hour after the call through 4:00 p.m. Central Standard Time on May 11, 2026. To access the replay, dial (855) 669-9658 in the United States or dial (412) 317-0088 from international locations and enter replay access code 7393378.

About Crown Crafts, Inc.

Crown Crafts, Inc. designs, markets and distributes infant, toddler and juvenile consumer products. Founded in 1957, Crown Crafts is one of America’s largest producers of infant bedding, toddler bedding, diaper bags, bibs, toys and disposable products. The Company operates through its wholly owned subsidiaries, NoJo Baby & Kids, Inc. and Sassy Baby, Inc., which market a variety of infant, toddler, and juvenile products under Company-owned trademarks (Sassy®, Manhattan Toy®, NoJo®, Baby Boom® and Neat Solutions®), as well as licensed collections and exclusive private label programs. Sales are made directly to retailers such as mass merchants, large chain stores, juvenile specialty stores, value channel stores, grocery and drug stores, restaurants, wholesale clubs, internet-based retailers and directly to consumers through the Company’s websites. For more information visit the Company’s website at www.crowncrafts.com.

Forward-Looking Statements

The foregoing contains forward-looking statements within the meaning of the Securities Act of 1933, the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Such statements are based upon management’s current expectations, projections, estimates and assumptions. Words such as “expects,” “believes,” “anticipates” and variations of such words and similar expressions identify such forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties that may cause future results to differ materially from those suggested by the forward-looking statements. These risks include, among others, general economic conditions, including changes in interest rates, in the overall level of consumer spending and in the price of oil, cotton and other raw materials used in the Company’s products, changing competition, changes in the retail environment, the Company’s ability to successfully integrate newly acquired businesses, the level and pricing of future orders from the Company’s customers, the extent to which the Company’s business is concentrated in a small number of customers, the Company’s dependence upon third-party suppliers, including some located in foreign countries, customer acceptance of both new designs and newly-introduced product lines, actions of competitors that may impact the Company’s business, disruptions to transportation systems or shipping lanes used by the Company or its suppliers, and the Company’s dependence upon licenses from third parties. Reference is also made to the Company’s periodic filings with the Securities and Exchange Commission for additional factors that may impact the Company’s results of operations and financial condition. The Company does not undertake to update the forward-looking statements contained herein to conform to actual results or changes in its expectations, whether as a result of new information, future events or otherwise.

Contact:

Claire K. Spencer
Vice President and Chief Financial Officer
investor@crowncrafts.com

About Crown Crafts, Inc. (CRWS):
Crown Crafts, Inc. designs, markets, and distributes infant, toddler, and juvenile consumer products. Founded in 1957, Crown Crafts is one of America’s largest producers of infant bedding, toddler bedding, diaper bags, bibs, toys, and disposable products. The Company primarily operates through its wholly owned subsidiaries, NoJo Baby & Kids, Inc. and Sassy Baby, Inc., which market a variety of infant, toddler, and juvenile products under Company-owned trademarks (Sassy^®, NoJo^®, Manhattan Toy^®, Baby Boom^® and Neat Solutions^®.), as well as licensed collections and exclusive private label programs. Sales are made directly to retailers such as mass merchants, large chain stores, juvenile specialty stores, value channel stores, grocery and drug stores, restaurants, wholesale clubs, internet-based retailers and direct-to-consumers through the Company’s websites. For more information, visit the Company’s website at www.crowncrafts.com.

Contact:

Claire K. Spencer
Vice President and Chief Financial Officer
investor@crowncrafts.com

Second Quarter Summary

• Net sales of $23.7 million compared to $24.5 million in the prior year quarter
  
• Gross profit of 27.7 percent compared to 28.4 percent in the second quarter of fiscal 2025
  
• Net income grew to $1.2 million or $0.11 per share, up from $0.9 million or $0.08 per share in the prior year quarter
  
• Declared quarterly dividend of $0.08 per share of Series A common stock
  

“Our stronger net income reflects our ability to successfully navigate what is widely believed to be one of the most disruptive backdrops our industry has faced in recent history,” stated Olivia Elliott, President and Chief Executive Officer. “While overall sales declined slightly during the quarter, we were able to grow the bottom line despite tariff costs continuing to pressure margins and overall profitability.

We are working diligently to manage costs during this period, successfully reducing marketing and administrative expenses as we integrate last year’s acquisition. Since the end of the quarter, we announced that we are consolidating our internal operations in an effort to eliminate redundant costs and realize additional savings that arise from right-sizing administrative costs. We will continue to search for opportunities to reduce costs while at the same time focusing on increasing sales and market share.

Overall, we continue to seek to leverage our prior acquisitions, expand product lines as appropriate, and utilize pricing actions to position the company for success and create long-term shareholder value as consumer demand normalizes.”

Second Quarter Fiscal 2026 Results

Net sales were $23.7 million for the three months ended September 28, 2025, compared with $24.5 million for the three months ended September 29, 2024. Sales of bedding and diaper bags decreased by $1.6 million, while the sales of bibs, toys and disposable products increased by $0.8 million.  

Gross profit for the second quarter decreased by $0.4 million from the prior year reflecting a margin of 27.7% as compared to 28.4% in the prior year period, primarily due to increased tariff costs associated with products imported from China.

Marketing and administrative expenses improved $0.7 million representing 19.9% of net sales for the three-month period ended September 28, 2025 from 22.3% of net sales for the three-month period ended September 29, 2024. The improvement is due to acquisition costs in the prior period, which was partially offset by increased advertising costs.

Quarterly Cash Dividend

The Board of Directors declared a quarterly cash dividend on the Company’s Series A common stock of $0.08 per share, which will be paid on January 2, 2026 to stockholders of record at the close of business on December 12, 2025.

Conference Call

The Company will host a teleconference today at 8:00 a.m. CDT to discuss the Company’s results, during which interested individuals will be given the opportunity to ask appropriate questions. The teleconference can be accessed in listen-only mode by visiting the Company’s website at www.crowncrafts.com. The financial information to be discussed during the teleconference may be accessed prior to the call on the investor relations portion of the Company’s website.

To join the teleconference, dial (844) 861-5504 and ask to join the Crown Crafts call. A telephone replay of the teleconference will be available one hour after the end of the call through 4:00 p.m. CDT on February 10, 2026. To access the replay, dial (855) 669-9658 in the United States or (412) 317-0088 from international locations and enter replay access code 2275253.

About Crown Crafts, Inc.

Crown Crafts, Inc. designs, markets, and distributes infant, toddler, and juvenile consumer products. Founded in 1957, Crown Crafts is one of America’s largest producers of infant bedding, toddler bedding, diaper bags, bibs, toys, and disposable products. The Company primarily operates through its wholly owned subsidiaries, NoJo Baby & Kids, Inc. and Sassy Baby, Inc., which market a variety of infant, toddler, and juvenile products under Company-owned trademarks (Sassy®, NoJo®, Manhattan Toy®, Baby Boom® and Neat Solutions®.), as well as licensed collections and exclusive private label programs. Sales are made directly to retailers such as mass merchants, large chain stores, juvenile specialty stores, value channel stores, grocery and drug stores, restaurants, wholesale clubs, internet-based retailers and direct-to-consumers through the Company’s websites. For more information, visit the Company’s website at www.crowncrafts.com.

Forward-Looking Statements

The foregoing contains forward-looking statements within the meaning of the Securities Act of 1933, the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Such statements are based upon management’s current expectations, projections, estimates and assumptions. Words such as “expects,” “believes,” “anticipates” and variations of such words and similar expressions identify such forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties that may cause future results to differ materially from those suggested by the forward-looking statements. These risks include, among others, general economic conditions, including the impact of newly imposed or threatened U.S. tariffs and any additional retaliatory measures by impacted exporting countries, and the Company’s ability to mitigate the impact of such tariffs; changes in interest rates, in the overall level of consumer spending and in the price of oil, cotton and other raw materials used in the Company’s products, changing competition, changes in the retail environment, the Company’s ability to successfully integrate newly acquired businesses, the level and pricing of future orders from the Company’s customers, the extent to which the Company’s business is concentrated in a small number of customers, the Company’s dependence upon third-party suppliers, including some located in foreign countries, customer acceptance of both new designs and newly-introduced product lines, actions of competitors that may impact the Company’s business, disruptions to transportation systems or shipping lanes used by the Company or its suppliers, and the Company’s dependence upon licenses from third parties. Reference is also made to the Company’s periodic filings with the Securities and Exchange Commission for additional factors that may impact the Company’s results of operations and financial condition. The Company does not undertake to update the forward-looking statements contained herein to conform to actual results or changes in our expectations, whether as a result of new information, future events or otherwise.

Interested individuals may join the teleconference by dialing (844) 861-5504 and asking to join the Crown Crafts, Inc. call. The teleconference can also be accessed in listen-only mode by visiting the Company’s website at www.crowncrafts.com. The financial information to be discussed during the teleconference may be found on the investor relations portion of the Company’s website after earnings are released.

A telephone replay of the teleconference will be available one hour after the call through 4:00 p.m. Central Standard Time on February 10, 2026. To access the replay, dial (855) 669-9658 in the United States or dial (412) 317-0088 from international locations and enter replay access code 2275253.

About Crown Crafts, Inc.

Crown Crafts, Inc. designs, markets and distributes infant, toddler and juvenile consumer products. Founded in 1957, Crown Crafts is one of America’s largest producers of infant bedding, toddler bedding, diaper bags, bibs, toys and disposable products. The Company operates through its wholly owned subsidiaries, NoJo Baby & Kids, Inc. and Sassy Baby, Inc., which market a variety of infant, toddler, and juvenile products under Company-owned trademarks (Sassy®, Manhattan Toy®, NoJo®, Baby Boom® and Neat Solutions®), as well as licensed collections and exclusive private label programs. Sales are made directly to retailers such as mass merchants, large chain stores, juvenile specialty stores, value channel stores, grocery and drug stores, restaurants, wholesale clubs, internet-based retailers and directly to consumers through the Company’s websites. For more information visit the Company’s website at www.crowncrafts.com.

Forward-Looking Statements

The foregoing contains forward-looking statements within the meaning of the Securities Act of 1933, the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Such statements are based upon management’s current expectations, projections, estimates and assumptions. Words such as “expects,” “believes,” “anticipates” and variations of such words and similar expressions identify such forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties that may cause future results to differ materially from those suggested by the forward-looking statements. These risks include, among others, general economic conditions, including changes in interest rates, in the overall level of consumer spending and in the price of oil, cotton and other raw materials used in the Company’s products, changing competition, changes in the retail environment, the Company’s ability to successfully integrate newly acquired businesses, the level and pricing of future orders from the Company’s customers, the extent to which the Company’s business is concentrated in a small number of customers, the Company’s dependence upon third-party suppliers, including some located in foreign countries, customer acceptance of both new designs and newly-introduced product lines, actions of competitors that may impact the Company’s business, disruptions to transportation systems or shipping lanes used by the Company or its suppliers, and the Company’s dependence upon licenses from third parties. Reference is also made to the Company’s periodic filings with the Securities and Exchange Commission for additional factors that may impact the Company’s results of operations and financial condition. The Company does not undertake to update the forward-looking statements contained herein to conform to actual results or changes in its expectations, whether as a result of new information, future events or otherwise.

Contact:

Claire K. Spencer
Vice President and Chief Financial Officer
(225) 647-9146
cspencer@crowncrafts.com

Investor Relations:

Three Part Advisors
Steven Hooser, Partner, or John McNamara, Managing Director
(817) 421-1803
jmcnamara@threepa.com

First Quarter Summary

• Net sales of $15.5 million compared to $16.2 million in the prior-year quarter
  
• Gross profit of 22.7 percent compared to 24.5 percent in the first quarter of fiscal 2025
  
• Net loss of ($1.10 million), or ($0.10) per share, compared to net loss of ($0.3 million), or ($0.03 per share), in the prior-year quarter
  
• Q1 results reflect the impact of increased tariffs
  
• Declared quarterly dividend of $0.08 per share of Series A common stock
  

Olivia Elliott, President and Chief Executive Officer, stated, “Our first quarter results reflect the themes we outlined in our financial results for fiscal year 2025. While the Baby Boom acquisition added $2.1 million in net sales during the first quarter, the persistent impact of tariffs and uncertainty over their permanent levels affected both consumers and suppliers. Despite these uncertainties, we managed just a modest decline in sales and gross profit. As we have noted, we will continue to navigate the tariff environment and search for ways to mitigate their impact, while focusing on increasing sales and market share.”

First Quarter Fiscal 2026 Results

Net sales decreased to $15.5 million for the three months ended June 29, 2025 compared with $16.2 million for the three months ended June 30, 2024, a decrease of $734,000, or 4.5%. Sales of bedding and diaper bags increased by $540,000 while sales of bibs, toys and disposable products decreased by $1.3 million. The Baby Boom acquisition added $2.1 million in net sales during the three months ended June 29, 2025; however, sales across all categories were negatively affected by inventory shortages resulting from the Company’s strategy to minimize the impact of the extremely high tariffs in effect during the first half of the quarter.

Gross profit decreased by $448,000 from the prior year resulting in a decrease from 24.5% of net sales for the three-month period ended June 30, 2024, to 22.7% of net sales for the three-month period ended June 29, 2025. This decrease in gross profit is primarily a result of increased tariff costs associated with products imported from China.
                   
Marketing and administrative expenses increased by $454,000 and increased from 26.3% of net sales for the three-month period ended June 30, 2024, to 30.5% of net sales for the three-month period ended June 29, 2025. The current year includes increased costs associated with the acquisition of Baby Boom as well as increased advertising costs.

Quarterly Cash Dividend

The Company also announced that its Board of Directors declared a quarterly cash dividend on the Company’s Series A common stock of $0.08 per share, which will be paid on October 3, 2025 to stockholders of record at the close of business on September 12, 2025.

Conference Call

The Company will host a teleconference today at 8:00 a.m. CDT to discuss the Company’s results, during which interested individuals will be given the opportunity to ask appropriate questions. To join the teleconference, dial (844) 861-5504 and ask to join the Crown Crafts call. The teleconference can also be accessed in listen-only mode by visiting the Company’s website at www.crowncrafts.com. The financial information to be discussed during the teleconference may be accessed prior to the call on the investor relations portion of the Company’s website. A telephone replay of the teleconference will be available one hour after the end of the call through 4:00 p.m. CDT on November 13, 2025. To access the replay, dial (877) 344-7529 in the United States or (412) 317-0088 from international locations and enter replay access code 7948436.

About Crown Crafts, Inc.

Crown Crafts, Inc. designs, markets, and distributes infant, toddler, and juvenile consumer products. Founded in 1957, Crown Crafts is one of America’s largest producers of infant bedding, toddler bedding, diaper bags, bibs, toys, and disposable products. The Company primarily operates through its wholly owned subsidiaries, NoJo Baby & Kids, Inc. and Sassy Baby, Inc., which market a variety of infant, toddler, and juvenile products under Company-owned trademarks (Sassy®, Manhattan Toy®, NoJo®, Baby Boom® and Neat Solutions®.), as well as licensed collections and exclusive private label programs. Sales are made directly to retailers such as mass merchants, large chain stores, juvenile specialty stores, value channel stores, grocery and drug stores, restaurants, wholesale clubs, internet-based retailers and direct-to-consumers through the Company’s websites. For more information, visit the Company’s website at www.crowncrafts.com.

Forward-Looking Statements

The foregoing contains forward-looking statements within the meaning of the Securities Act of 1933, the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Such statements are based upon management’s current expectations, projections, estimates and assumptions. Words such as “expects,” “believes,” “anticipates” and variations of such words and similar expressions identify such forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties that may cause future results to differ materially from those suggested by the forward-looking statements. These risks include, among others, general economic conditions, including the impact of newly imposed or threatened U.S. tariffs and any additional retaliatory measures by impacted exporting countries, and the Company’s ability to mitigate the impact of such tariffs; changes in interest rates, in the overall level of consumer spending and in the price of oil, cotton and other raw materials used in the Company’s products, changing competition, changes in the retail environment, the Company’s ability to successfully integrate newly acquired businesses, the level and pricing of future orders from the Company’s customers, the extent to which the Company’s business is concentrated in a small number of customers, the Company’s dependence upon third-party suppliers, including some located in foreign countries, customer acceptance of both new designs and newly-introduced product lines, actions of competitors that may impact the Company’s business, disruptions to transportation systems or shipping lanes used by the Company or its suppliers, and the Company’s dependence upon licenses from third parties. Reference is also made to the Company’s periodic filings with the Securities and Exchange Commission for additional factors that may impact the Company’s results of operations and financial condition. The Company does not undertake to update the forward-looking statements contained herein to conform to actual results or changes in our expectations, whether as a result of new information, future events or otherwise.

Contact:
Claire Spencer
Vice President and Chief Financial Officer
(225) 647-9146
cspencer@crowncrafts.com

Investor Relations:
Three Part Advisors
Steven Hooser, Partner, or John McNamara, Managing Director
(817) 421-1803
jmcnamara@threepa.com

Interested individuals may join the teleconference by dialing (844) 861-5504 and asking to join the Crown Crafts, Inc. call. The teleconference can also be accessed in listen-only mode by visiting the Company’s website at www.crowncrafts.com.   The financial information to be discussed during the teleconference may be found on the investor relations portion of the Company’s website after earnings are released.

A telephone replay of the teleconference will be available one hour after the call through 4:00 p.m. Central Standard Time on November 14, 2025. To access the replay, dial (877) 344-7529 in the United States or dial (412) 317-0088 from international locations and enter replay access code 7948436.

About Crown Crafts, Inc.

Crown Crafts, Inc. designs, markets and distributes infant, toddler and juvenile consumer products. Founded in 1957, Crown Crafts is one of America’s largest producers of infant bedding, toddler bedding, diaper bags, bibs, toys and disposable products. The Company operates through its wholly owned subsidiaries, NoJo Baby & Kids, Inc. and Sassy Baby, Inc., which market a variety of infant, toddler, and juvenile products under Company-owned trademarks (Sassy®, Manhattan Toy®, NoJo®, Baby Boom® and Neat Solutions®), as well as licensed collections and exclusive private label programs. Sales are made directly to retailers such as mass merchants, large chain stores, juvenile specialty stores, value channel stores, grocery and drug stores, restaurants, wholesale clubs, internet-based retailers and directly to consumers through the Company’s websites. For more information visit the Company’s website at www.crowncrafts.com.

Forward-Looking Statements

The foregoing contains forward-looking statements within the meaning of the Securities Act of 1933, the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Such statements are based upon management’s current expectations, projections, estimates and assumptions. Words such as “expects,” “believes,” “anticipates” and variations of such words and similar expressions identify such forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties that may cause future results to differ materially from those suggested by the forward-looking statements. These risks include, among others, general economic conditions, including changes in interest rates, in the overall level of consumer spending and in the price of oil, cotton and other raw materials used in the Company’s products, changing competition, changes in the retail environment, the Company’s ability to successfully integrate newly acquired businesses, the level and pricing of future orders from the Company’s customers, the extent to which the Company’s business is concentrated in a small number of customers, the Company’s dependence upon third-party suppliers, including some located in foreign countries, customer acceptance of both new designs and newly-introduced product lines, actions of competitors that may impact the Company’s business, disruptions to transportation systems or shipping lanes used by the Company or its suppliers, and the Company’s dependence upon licenses from third parties. Reference is also made to the Company’s periodic filings with the Securities and Exchange Commission for additional factors that may impact the Company’s results of operations and financial condition. The Company does not undertake to update the forward-looking statements contained herein to conform to actual results or changes in its expectations, whether as a result of new information, future events or otherwise.

Contact:

Claire K. Spencer
Vice President and Chief Financial Officer
(225) 647-9146
cspencer@crowncrafts.com

Investor Relations:

Three Part Advisors Steven Hooser, Partner, or John McNamara, Managing Director
(817) 421-1803
jmcnamara@threepa.com

Fourth Quarter Summary

• Net sales of $23.2 million
  
  
• Gross profit of $4.2 million; gross margin of 18.3%
  
  
• GAAP net loss of $(10.8) million, or $(1.04) per diluted share
  
  
• Adjusted net loss of $(429,000) or adjusted diluted loss per share of $(0.04) ⁽¹⁾
  
  
• Adjusted net loss and adjusted diluted loss per share include an adjustment for a goodwill impairment charge of $13.8 million, or $10.4 million after tax, and $1.32, per share or $1.00, per share after tax.
  
  
• Declared quarterly dividend of $0.08 per share of Series A common stock
  

Fiscal 2025 Summary

• Net sales of $87.3 million
  
  
• Gross profit of $21.3 million; gross margin of 24.4%
  
  
• GAAP net loss of $(9.4) million, or $(0.90) per diluted share
  
  
• Adjusted net income of $1.0 million, or adjusted diluted earnings per share of $0.10 ⁽¹⁾
  
  
• Adjusted net income and adjusted diluted earnings per share include an adjustment for a goodwill impairment charge of $13.8 million, or $10.4 million after tax, and $1.33, per share or $1.00, per share after tax.
  

(1)   Adjusted net (loss) income, adjusted earnings (loss) per share (EPS), diluted, are non-GAAP measures. See "Non-GAAP Measures" and "Reconciliations of GAAP to Non-GAAP Financial Measures" below for reconciliations of non-GAAP financial measures to their most directly comparable GAAP financial measures.

Olivia Elliott, President and Chief Executive Officer, stated, “Our fourth quarter sales were 2.9% higher than the prior year quarter, and, while adjusted net income was below our expectations, there were several factors that impacted the quarter, including higher close-out sales at lower margins and the impact of tariffs. For the full year, the Crown Crafts team focused on the strategic initiatives that build for our future success. We acquired Baby Boom Consumer Products in the second quarter, fully integrated Manhattan Toy, continued to reduce operational costs, expanded ecommerce capabilities, and formulated a plan to decrease warehousing expenses. While not all of these measures flowed through this year due to the persistent strain the economy had on our customers, we are optimistic that the work we have done will lead to greater sales and profits over the long term.”

Fourth Quarter Commentary
Net sales for the fourth quarter of fiscal 2025 increased 2.9% to $23.2 million, compared to the prior-year quarter, driven by sales associated with the Baby Boom acquisition.

Gross margin was 18.3%, a 4.9% decrease versus the prior year quarter due to a higher mix of close-out sales to reduce inventory levels in preparation for future warehouse consolidation and $324,000 of higher tariffs associated with products imported from China.

Marketing and administrative expenses were $4.6 million, an increase of 17.0% compared to the prior year quarter. The current year period includes $77,000 in acquisition costs as well as increased marketing and administrative costs associated with the Baby Boom business.

During the fourth quarter of 2025, the Company determined that a triggering event occurred in relation to the depressed market price of the Company’s common stock and corresponding significant decline in the Company’s market capitalization. As a result, the Company performed a quantitative goodwill impairment test that concluded the estimated fair values of its reporting units were lower than their carrying values, indicating that the goodwill within these reporting units was impaired. Consequently, the Company recorded a non-cash goodwill impairment charge of $13.8 million during the quarter ended March 30, 2025.

GAAP net loss was $(10.8) million, or $(1.04) per diluted share. Adjusted net loss was $(429,000) or adjusted diluted loss per share of $(0.04), which excludes the $13.8 million goodwill impairment charge.

Fiscal 2025 Commentary
Net sales for fiscal 2025 were $87.3 million, essentially flat with fiscal 2024.

Gross margin was 24.4%, a 1.8% decrease compared to fiscal 2024, primarily a result of higher rent at the Compton facility, higher closeout sales and increased tariffs.

Marketing and administrative expenses were $18.7 million, an increase of 16% compared to fiscal 2024. The current year period includes $244,000 associated with the closure of the Company’s subsidiary in the United Kingdom and $1.2 million in costs associated with the Baby Boom acquisition.

GAAP net loss was $(9.4) million, or $(0.90) per diluted share. Adjusted net income was $1.0 million or adjusted diluted earnings per share of $0.10, which excludes the $13.8 million goodwill impairment charge.

The Company ended fiscal 2025 with $521,000 in cash and cash equivalents. Total inventory at the end of the year was $27.8 million, a 6.4% decrease compared to the end of fiscal 2024.

Quarterly Cash Dividend
On May 14, 2025, the Company announced that its Board of Directors had declared a quarterly cash dividend on the Company’s Series A common stock of $0.08 per share, which will be paid on July 3, 2025, to stockholders of record at the close of business on June 13, 2025.

Conference Call
The Company will host a teleconference today at 8:00 a.m. CDT to discuss the Company’s results. To join the teleconference, dial 844-861-5504 and ask to join the Crown Crafts call. The teleconference can also be accessed in listen-only mode by visiting the Company’s website at www.crowncrafts.com. The financial information to be discussed during the teleconference may be accessed prior to the call on the investor relations portion of the Company’s website. A telephone replay of the teleconference will be available one hour after the end of the call through 4:00 p.m. CDT on September 25, 2025. To access the replay, dial 877-344-7529 in the United States or 412-317-0088 from international locations and enter replay access code 6119723.

About Crown Crafts, Inc.
Crown Crafts, Inc. designs, markets, and distributes infant, toddler, and juvenile consumer products. Founded in 1957, Crown Crafts is one of America’s largest producers of infant bedding, toddler bedding, diaper bags, bibs, toys and disposable products. The Company operates through its wholly owned subsidiaries, NoJo Baby & Kids, Inc. and Sassy Baby, Inc., which market a variety of infant, toddler and juvenile products under Company-owned trademarks, as well as licensed collections and exclusive private label programs. Sales are made directly to retailers such as mass merchants, large chain stores and juvenile specialty stores. For more information, visit the Company’s website at www.crowncrafts.com.

Forward-Looking Statements
The foregoing contains forward-looking statements within the meaning of the Securities Act of 1933, the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Such statements are based upon management’s current expectations, projections, estimates and assumptions. Words such as “expects,” “believes,” “anticipates” and variations of such words and similar expressions identify such forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties that may cause future results to differ materially from those suggested by the forward-looking statements. These risks include, among others, general economic conditions, including changes in interest rates, in the overall level of consumer spending and in the price of oil, cotton and other raw materials used in the Company’s products, changing competition, changes in the retail environment, the Company’s ability to successfully integrate newly acquired businesses, the level and pricing of future orders from the Company’s customers, the extent to which the Company’s business is concentrated in a small number of customers, the Company’s dependence upon third-party suppliers, including some located in foreign countries, customer acceptance of both new designs and newly-introduced product lines, actions of competitors that may impact the Company’s business, disruptions to transportation systems or shipping lanes used by the Company or its suppliers, and the Company’s dependence upon licenses from third parties. Reference is also made to the Company’s periodic filings with the Securities and Exchange Commission for additional factors that may impact the Company’s results of operations and financial condition. The Company does not undertake to update the forward-looking statements contained herein to conform to actual results or changes in our expectations, whether as a result of new information, future events or otherwise.

Contact:
Craig J. Demarest, Vice President and Chief Financial Officer
(225) 647-9118
cdemarest@crowncrafts.com

Investor Relations:
Three Part Advisors
Steven Hooser, Partner, or Matt Hodges, Managing Director
(817) 343-8021

GAAP to Non-GAAP Reconciliation