Crown Crafts, Inc. (CRWS): Lienzo del Modelo de Negocio [Actualizado en Ene-2025]

En el mundo dinámico de los textiles para el hogar infantil y juvenil, Crown Crafts, Inc. (CRWS) emerge como una potencia estratégica, transformando la forma en que los padres y las familias experimentan ropa de cama y accesorios de los niños. Al combinar magistralmente el diseño innovador, las asociaciones estratégicas y una gran comprensión de las necesidades de los consumidores, esta compañía ha forjado un nicho único en el panorama minorista competitivo. Desde la mercancía con temas de personajes hasta líneas de productos asequibles y centradas en la seguridad, Crown Crafts ofrece un modelo de negocio convincente que se conecta directamente con nuevos padres, compradores de regalos y consumidores conscientes del presupuesto en los principales canales minoristas.

Crown Crafts, Inc. (CRWS) - Modelo de negocios: asociaciones clave

Socios minoristas

Crown Crafts mantiene asociaciones estratégicas con los principales minoristas:

Detallista	Detalles de la asociación	Categorías de productos
Walmart	Canal de distribución primaria	Ropa de cama infantil, mantas
Objetivo	Acuerdo de suministro a largo plazo	Accesorios para bebés, productos de guardería
Amazonas	Plataforma de distribución de comercio electrónico	Gama completa de productos en línea

Asociaciones de fabricación

Crown Crafts aprovecha las relaciones de fabricación internacional:

• Fabricantes en China
• Instalaciones de producción en Vietnam
• Regiones de fabricación de bajo costo en el sudeste asiático

Proveedores de textiles y telas

Región de proveedor	Tipo de material	Volumen de suministro anual
India	Telas de algodón	1.2 millones de yardas
Porcelana	Mezclas sintéticas	850,000 yardas

Acuerdos de licencia

Asociaciones de licencias de personajes activos:

• Licencias de personajes de Disney
• Colecciones de ropa de cama de personajes de Marvel
• Líneas de productos de personajes de Nickelodeon

Redes de distribución

Las asociaciones de distribución incluyen:

• Distribuidores mayoristas a nivel nacional
• Minoristas de productos para bebés especializados
• Integraciones del mercado en línea

Crown Crafts, Inc. (CRWS) - Modelo de negocios: actividades clave

Diseño y desarrollo de productos de ropa de cama infantil/juvenil

A partir del año fiscal 2023, Crown Crafts invirtió $ 1.2 millones en investigación y desarrollo de productos. La compañía mantiene un equipo de diseño dedicado de 12 profesionales especializados en productos textiles infantiles y juveniles.

Categoría de diseño	Lanzamientos anuales de productos	Tamaño del equipo de diseño
Ropa de cama infantil	24-36 nuevos diseños	7 diseñadores
Ropa de cama juvenil	18-24 nuevos diseños	5 diseñadores

Control de fabricación y calidad

Crown Crafts opera con 3 instalaciones de fabricación primarias, produciendo aproximadamente 1,5 millones de unidades de cama anualmente.

• Tasa de inspección de control de calidad: 100% de los lotes de producción
• Tiempo promedio del ciclo de producción: 15-20 días por línea de productos
• Fuerza laboral de fabricación: 220 empleados directos

Marketing y gestión de marca

El gasto de marketing para el año fiscal 2023 fue de $ 3.4 millones, lo que representa el 8.2% de los ingresos totales.

Canal de marketing	Asignación de presupuesto
Marketing digital	42% ($ 1.43 millones)
Ferias comerciales	25% ($850,000)
Impresión/medios tradicionales	33% ($ 1.12 millones)

Gestión de inventario

Relación de facturación de inventario para 2023: 4.7 veces por año, con un valor de inventario total de $ 12.6 millones.

• Capacidad de almacenamiento de almacén: 75,000 pies cuadrados
• Período de retención de inventario promedio: 77 días
• Stock de seguridad mantenida: 45-60 días de demanda proyectada

Ventas y distribución de productos textiles para el hogar

Ingresos totales de ventas para el año fiscal 2023: $ 42.3 millones, con distribución en más de 500 socios minoristas.

Canal de distribución	Contribución de ingresos
Tiendas minoristas	65% ($ 27.5 millones)
Plataformas en línea	22% ($ 9.3 millones)
Al por mayor	13% ($ 5.5 millones)

Crown Crafts, Inc. (CRWS) - Modelo de negocios: recursos clave

Cartera de marca fuerte

Crown Crafts, Inc. posee tres marcas principales:

Marca	Categoría de productos	Presencia en el mercado
Hamco	Ropa de cama infantil	Minorista establecido
Nojo	Accesorios para bebés	Distribución nacional
Graco	Asociación de licencias	Marca reconocida de productos juveniles

Equipo de diseño y desarrollo de productos

A partir del año fiscal 2023, Crown Crafts mantiene un equipo dedicado de desarrollo de productos con 12 profesionales del diseño.

Relaciones de fabricación

• Ubicaciones de fabricación primaria: China y México
• Asociaciones de fabricación total: 5 proveedores estratégicos
• Capacidad de fabricación anual: aproximadamente 10 millones de unidades de productos infantiles y juveniles

Canales de distribución minorista establecidos

Canal minorista	Penetración del mercado
Walmart	Minorista principal de gran formato
Amazonas	Plataforma de comercio electrónico
Comprar comprar bebé	Minorista de bebés especializado

Propiedad intelectual y acuerdos de licencia

A partir de la información financiera de 2023, Crown Crafts posee:

• 7 acuerdos de licencia activos
• Ingresos de licencia: $ 3.2 millones anuales
• Registros de marcas registradas: 22 marcas comerciales activas

Crown Crafts, Inc. (CRWS) - Modelo de negocio: propuestas de valor

Productos textiles para niños y menores asequibles para bebés y juveniles

A partir del año fiscal 2023, Crown Crafts generó $ 93.7 millones en ventas netas totales, con un enfoque en proporcionar soluciones textiles rentables para bebés y niños.

Categoría de productos	Rango de precios promedio	Segmento de mercado
Ropa de cama infantil	$29.99 - $79.99	Padres conscientes del presupuesto
Juegos de ropa de cama juveniles	$49.99 - $129.99	Consumidores del mercado medio

Amplia gama de opciones de diseño para ropa de cama para niños

Crown Crafts ofrece aproximadamente más de 250 variaciones de diseño únicas en sus líneas de productos.

• Diseños con licencia de personajes de las principales marcas de entretenimiento
• Paletas de colores neutrales de género
• Colecciones temáticas específicas de edad

Líneas de productos centrados en la calidad y la seguridad

Cumplimiento de las normas y certificaciones de CPSC:

• Certificación OEKO-TEX Standard 100
• Estándares de seguridad internacionales ASTM
• Procesos de control de calidad rigurosos

Diversas ofertas de productos en múltiples puntos de precio

Segmento de precios	Gama de productos	Consumidor objetivo
Presupuesto	Juegos de ropa de cama básicos	Padres para buscar valor
De rango medio	Colecciones con licencia premium	Consumidores conscientes de la marca
De primera calidad	Colecciones textiles especializadas	Segmento de mercado de alta gama

Mercancía con temática de carácter para niños

Los acuerdos de licencia con las principales marcas contribuyen significativamente a la diferenciación de productos.

• Productos con licencia de Disney: 35% de los ingresos por mercancías de personajes
• Colecciones de Marvel y Star Wars: 22% de los ingresos por mercancías de personajes
• Nickelodeon y otras marcas infantiles: 43% de los ingresos de mercancías de personajes

Crown Crafts, Inc. (CRWS) - Modelo de negocios: relaciones con los clientes

Ventas directas en línea a través del sitio web de la compañía

A partir de 2024, Crown Crafts, Inc. mantiene una plataforma de comercio electrónico con las siguientes métricas:

Canal de ventas en línea	Ingresos anuales	Tráfico del sitio web
Ventas directas del sitio web	$ 3.2 millones	127,500 visitantes/mes únicos

Soporte de servicio al cliente de socios minoristas

Crown Crafts colabora con múltiples socios minoristas:

• Walmart
• Objetivo
• Comprar comprar bebé
• Amazonas

Socio minorista	Volumen de ventas anual	Canales de atención al cliente
Walmart	$ 5.7 millones	Teléfono, correo electrónico, chat
Amazonas	$ 4.3 millones	Portal de soporte en línea

Estrategias de marketing centradas en el consumidor

Inversión y alcance de marketing:

Canal de marketing	Presupuesto anual	Alcanzar
Marketing digital	$620,000	1,2 millones de impresiones
Publicidad dirigida	$450,000	825,000 consumidores dirigidos

Compromiso de las redes sociales

Plataforma	Seguidores	Tasa de compromiso
Instagram	87,500	4.2%
Facebook	62,300	3.7%

Comentarios de los clientes y ciclos de mejora del producto

Métrico de retroalimentación	Datos anuales
Revisiones de clientes recopiladas	12,400
Iteraciones de productos basadas en comentarios	37 Modificaciones de productos

Crown Crafts, Inc. (CRWS) - Modelo de negocios: canales

Grandes tiendas minoristas

Crown Crafts, Inc. distribuye productos a través de minoristas nacionales clave:

Detallista	Penetración del mercado	Porcentaje de ventas
Walmart	78 tiendas en todo el país	42% de los ingresos totales del canal minorista
Objetivo	52 tiendas en todo el país	28% de los ingresos totales del canal minorista

Mercados en línea

Los canales de ventas digitales incluyen:

• Amazon: 35% del volumen de ventas en línea
• Babylist: 12% del volumen de ventas en línea
• Comprar comprar bebé: 15% del volumen de ventas en línea

Tienda en línea directa de la empresa

Estadísticas directas de la plataforma de comercio electrónico:

Métrico	2023 datos
Ingresos anuales en línea	$ 3.2 millones
Visitantes del sitio web	127,500 por mes
Tasa de conversión	2.7%

Redes de distribución al por mayor

Desglose del canal al por mayor:

• Distribuidores regionales de suministro de bebés: 22% de las ventas totales
• National Wholesale Partners: 18% de las ventas totales
• Canales al por mayor internacionales: 7% de las ventas totales

Tiendas especializadas para bebés y niños

Tipo de tienda	Número de ubicaciones	Contribución de ventas
Boutiques de bebés independientes	245 tiendas	15% de los ingresos totales
Tiendas de especialidad para niños regionales	87 tiendas	8% de los ingresos totales

Crown Crafts, Inc. (CRWS) - Modelo de negocios: segmentos de clientes

Nuevos padres y futuras madres

Tamaño del mercado para productos infantiles en los Estados Unidos: $ 88.4 mil millones en 2023

Segmento demográfico	Poder adquisitivo anual	Gasto promedio en productos para bebés
Padres por primera vez	$6,500	$ 3,200 por niño
Madres expectantes	$5,800	$ 2,800 antes del cumpleaños

Familias con bebés y niños pequeños

Rango de edad objetivo: 0-5 años

• Aproximadamente 12.5 millones de familias en este segmento
• Gasto promedio de hogares en productos para niños: $ 12,980 anualmente
• Repita la frecuencia de compra: 3-4 veces al año

Compradores de regalos

Categoría de regalos	Valor de mercado anual	Porcentaje de ventas totales
Regalos de baby shower	$ 1.2 mil millones	22%
Regalos de cumpleaños	$ 850 millones	15%

Consumidores conscientes del presupuesto

Ingresos familiares promedio para el segmento objetivo: $ 65,000

• Rango de sensibilidad de precios: $ 10- $ 50 para productos para bebés
• Buscar compras basadas en el valor
• Priorizar la relación calidad-precio

Compradores minoristas y gerentes de adquisiciones

Canal minorista	Volumen de compras anual	Valor de pedido promedio
Comerciantes masivos	$ 45 millones	$125,000
Tiendas de bebés especiales	$ 22 millones	$75,000
Minoristas en línea	$ 38 millones	$95,000

Crown Crafts, Inc. (CRWS) - Modelo de negocio: Estructura de costos

Adquisición de materia prima

A partir del año fiscal 2023, Crown Crafts, Inc. informó costos de adquisición de materias primas de $ 20.4 millones.

Categoría de material	Costo anual	Porcentaje de gastos totales de materia prima
Telas de algodón	$ 12.6 millones	61.8%
Mezclas de poliéster	$ 4.8 millones	23.5%
Textiles especializados	$ 3.0 millones	14.7%

Costos de fabricación y producción

Los gastos de fabricación totales para Crown Crafts en 2023 fueron de $ 35.7 millones.

• Costos laborales directos: $ 15.2 millones
• Sobre de fábrica: $ 8.5 millones
• Mantenimiento del equipo: $ 3.6 millones
• Control de calidad: $ 2.4 millones
• Operaciones de la instalación: $ 6.0 millones

Gastos operativos

Los gastos operativos para la compañía totalizaron $ 22.1 millones en 2023.

Categoría de gastos	Costo anual
Salarios administrativos	$ 9.3 millones
Utilidades	$ 3.7 millones
Seguro	$ 2.5 millones
Mantenimiento de la oficina	$ 1.6 millones
Infraestructura tecnológica	$ 5.0 millones

Gastos de marketing y ventas

Los costos de marketing y ventas para Crown Crafts ascendieron a $ 7.6 millones en 2023.

• Marketing digital: $ 2.3 millones
• Participación de la feria: $ 1.5 millones
• Compensación del equipo de ventas: $ 3.1 millones
• Materiales promocionales: $ 0.7 millones

Inversiones de investigación y desarrollo

Los gastos de I + D para Crown Crafts fueron de $ 3.2 millones en 2023.

Área de enfoque de I + D	Inversión
Innovación de productos	$ 1.8 millones
Tecnología material	$ 0.9 millones
Desarrollo del diseño	$ 0.5 millones

Crown Crafts, Inc. (CRWS) - Modelo de negocios: flujos de ingresos

Ventas minoristas de ropa de cama infantil

Para el año fiscal que finalizó el 31 de marzo de 2023, Crown Crafts, Inc. reportó ventas netas totales de $ 76.8 millones, con una porción significativa derivada de las ventas minoristas de productos de cama para bebés.

Categoría de productos	Contribución de ingresos	Porcentaje de ventas totales
Ropa de cama infantil	$ 42.3 millones	55.1%
Otros productos infantiles	$ 34.5 millones	44.9%

Ingresos de licencia de marcas de personajes

Crown Crafts genera ingresos adicionales a través de acuerdos de licencia con marcas de personajes populares.

• Las marcas con licencia incluyen Disney, Marvel y Nickelodeon
• Ingresos de licencia para 2023: $ 3.2 millones
• Los acuerdos de licencia cubren líneas de productos de ropa de cama infantil y infantil

Distribución de productos al por mayor

La distribución mayorista representa un flujo de ingresos crítico para la empresa.

Canales al por mayor	Ingresos anuales	Minoristas clave
Comerciantes masivos	$ 28.5 millones	Walmart, Target
Minoristas en línea	$ 12.7 millones	Amazon, comprar bebé

Ventas en línea directa al consumidor

Crecimiento del canal de ventas en línea directo al consumo para el año fiscal 2023:

• Ventas totales en línea: $ 8.6 millones
• Crecimiento año tras año: 12.4%
• Plataformas principales: sitio web de la empresa, Amazon Marketplace

Ventas de expansión del mercado internacional

Rendimiento de ventas internacionales para el año fiscal 2023:

Región	Ganancia	Porcentaje de ventas totales
Canadá	$ 4.3 millones	5.6%
Otros mercados internacionales	$ 2.1 millones	2.7%

Crown Crafts, Inc. (CRWS) - Canvas Business Model: Value Propositions

You're looking at the core things Crown Crafts, Inc. offers that make customers choose them over the competition right now, late in 2025. It's about what they deliver that matters to the end-user.

Trusted, high-quality infant, toddler, and juvenile products.

The company builds trust through established brands like NoJo, which has been around for over 50 years and is associated with excellence and quality. They use specific materials to convey this premium feel in their softlines, such as muslin, sateen, and plush velboa, adding a touch of luxury to nursery bedding.

Broad product range: bedding, diaper bags, toys, and disposable items.

Crown Crafts, Inc. covers a wide spectrum of juvenile needs, though the sales mix shows some shifting pressure. For the three months ended September 28, 2025, net sales hit $23.7 million, a slight dip from the prior year period. The product categories show how they spread their bets across the market.

Product Category	Q2 FY2026 Sales Change vs. Prior Year	FY2025 Net Sales (Total)
Bedding and Diaper Bags	Decreased by $1.6 million	Contributed to $87.3 million total fiscal 2025 revenue
Bibs, Toys, and Disposable Products	Increased by $800,000	Contributed to $87.3 million total fiscal 2025 revenue

Here's the quick math: for the six months ended September 28, 2025, total sales were $39.2 million, down from $40.7 million the year before. What this estimate hides is that the growth in bibs, toys, and disposables is helping offset weakness in the core bedding and diaper bags segment.

Access to popular, trending licensed characters and brands.

A major draw is their portfolio of licensed content, which keeps their product lines fresh and appealing to current trends. They market these under various Company-owned trademarks, but the licensed collections are key.

• Disney
• Carter's
• Sesame Street
• Marvel
• Warner Bros
• Star Wars

Also, the Baby Boom acquisition added specific licenses to their lineup, enhancing their toddler bedding offerings.

Value and convenience through mass-market and specialty retail presence.

Convenience comes from making products available where parents already shop. They serve a very diverse set of outlets, ensuring broad market penetration.

• Mass merchants
• Large chain stores
• Juvenile specialty stores
• Value channel stores
• Grocery and drug stores
• Wholesale clubs
• Internet-based retailers

This multi-channel approach means parents can get what they need across various price points and shopping preferences. The company also supports this with a consistent return of capital, having declared a quarterly cash dividend of $0.08 per share, which translates to a forward annualized dividend of $0.32 per share.

Crown Crafts, Inc. (CRWS) - Canvas Business Model: Customer Relationships

You're looking at how Crown Crafts, Inc. (CRWS) keeps its customers engaged, which really breaks down into a few distinct channels, from the biggest department stores right down to someone buying a single bib on their phone. The relationship with major retailers is clearly critical, as evidenced by the direct sales channel to entities like mass merchants and large chain stores. The health of these relationships directly impacts the top line; for instance, the decrease in bedding and diaper bag sales for the three months ended September 28, 2025, was primarily due to the decrease in the number of items included in a program at a major retailer. This shows you that dedicated sales teams managing these accounts are key to maintaining shelf space and order volume.

The company also relies heavily on transactional relationships established through various digital storefronts. Crown Crafts, Inc. markets to internet-based retailers and has actively expanded ecommerce capabilities as a strategic focus for future success. Still, the performance in this area can fluctuate; net sales for the third quarter of fiscal 2025 reflected lower online toy sales, which contributed to the overall sales dip compared to the prior year period.

For direct-to-consumer engagement, Crown Crafts, Inc. sells products directly through the Company's websites. This channel allows for direct feedback and potentially higher margin sales, though the scale seems smaller than the major retail partnerships.

To give you a snapshot of the financial context surrounding these customer interactions, here are some key figures from the latest reported periods:

Metric	Value (Latest Reported Period)	Period/Date Reference
Net Sales	$23.7 million	Three months ended September 28, 2025
Net Sales	$39.2 million	Six months ended September 28, 2025
Gross Margin	27.7%	Three months ended September 28, 2025
Marketing and Administrative Expenses (% of Net Sales)	19.9%	Three months ended September 28, 2025
Net Income	$893,000	Third Quarter Fiscal 2025
Operating Cash Flow (Year-to-Date)	$7.0 million	Third Quarter Fiscal 2025

Now, let's talk about the relationship with the ultimate owners-the shareholders. Crown Crafts, Inc. has been committed to maintaining a consistent return for them, which is a signal of financial stability, even when facing margin pressures. The Board of Directors declared a quarterly cash dividend of $0.08 per share of Series A common stock for the payment date of July 3, 2025. This consistent payout results in an annualized distribution of $0.32 per share. The current dividend yield has been reported as high as 11.72%, which is significantly higher than the Consumer Cyclical sector average of 2.69%.

The dividend policy is a direct communication to the investment community, reinforcing the relationship with shareholders through:

• Consistent quarterly payments of $0.08 per share.
• An annualized dividend distribution of $0.32 per share.
• A current dividend yield of approximately 11.7%.
• A commitment to maintaining the dividend despite a challenging macroeconomic environment.

Finance: draft 13-week cash view by Friday.

Crown Crafts, Inc. (CRWS) - Canvas Business Model: Channels

You're looking at how Crown Crafts, Inc. gets its infant, toddler, and juvenile products into the hands of consumers as of late 2025. The distribution setup is heavily reliant on established, high-volume retail relationships, which is typical for this sector.

Mass merchants and large chain stores (primary volume drivers).

This segment represents the core of Crown Crafts, Inc.'s volume. Sales are made directly to these retailers, which include the mass merchants and large chain stores. The concentration risk here is clear: the top two customers accounted for approximately 66% of gross sales in fiscal year 2025. This concentration underscores the critical nature of maintaining strong working relationships with these major retail partners, as mentioned in their commentary. A dip in orders from just one of these key accounts can materially affect the top line.

Juvenile specialty stores and wholesale clubs.

Crown Crafts, Inc. also sells directly to juvenile specialty stores. While not explicitly quantified separately from mass merchants in the latest reports, these specialty outlets are part of the traditional direct-to-retailer model. Wholesale clubs are another listed channel, though specific revenue contribution data isn't broken out for this segment in the public filings reviewed.

Value channel stores, grocery, and drug stores.

The company's sales structure explicitly includes distribution to value channel stores, grocery stores, and drug stores. Performance across these channels shows volatility tied to specific retailer programs. For instance, a decrease in the number of items included in a program at a major retailer was cited as a primary reason for a sales decline in the six months ended September 28, 2025, contributing to the period's net sales of $39.2 million.

Internet-based retailers and direct-to-consumer websites.

E-commerce capabilities are a strategic focus for Crown Crafts, Inc., with management noting efforts to expand these channels. However, this area has shown sensitivity to product mix and external factors. Lower online toy sales were specifically noted as a factor contributing to the net sales decline in the third quarter of fiscal 2025, which totaled $23.3 million. The company ended the first quarter of fiscal 2026 (ended June 29, 2025) with net sales of $15.5 million, which management attributed partly to inventory shortages resulting from strategies to minimize tariff impacts.

Here's a quick look at how recent quarterly net sales have tracked, which reflects the ebb and flow across these various channels:

Reporting Period End Date	Net Sales Amount	Comparison to Prior Year Period
June 29, 2025 (Q1 FY2026)	$15.5 million	Decrease of 4.5%
September 28, 2025 (Q2 FY2026)	$23.7 million	Decrease of 3.1%
December 29, 2024 (Q3 FY2025)	$23.3 million	Decrease from $23.8 million (Prior Year Q3)
March 30, 2025 (Q4 FY2025)	$23.2 million	Increase of 2.9% (driven by acquisition)

The overall fiscal 2025 net sales were $87.3 million. The company is actively working to strengthen its market position by adding products through acquisition, such as Baby Boom Consumer Products, which added diaper bag sales, and securing more popular brand licenses.

• Sales are made directly to retailers.
• Key product categories include infant bedding, toddler bedding, diaper bags, bibs, toys, and disposable products.
• The company markets products under Company-owned trademarks, licensed collections, and exclusive private label programs.
• Management is focused on expanding e-commerce capabilities.
• The company continues to have good working relationships with its major retail partners.

Finance: draft 13-week cash view by Friday.

Crown Crafts, Inc. (CRWS) - Canvas Business Model: Customer Segments

You're looking at the core buyers for Crown Crafts, Inc. as of late 2025. The business model clearly targets several distinct groups, though the financial data suggests a heavy reliance on a few key players in the retail space.

The overall scale of the business, based on the most recently completed full fiscal year, shows total net sales for fiscal 2025 were $87.3 million. This gives you the backdrop for the volume these customer segments drive.

Here is a breakdown of the primary customer segments Crown Crafts, Inc. serves:

• Mass-market retailers seeking high-volume, branded juvenile products.
• Specialty juvenile retailers focusing on higher-margin, niche items.
• Parents and gift-givers of infants, toddlers, and juveniles.
• International retailers reached via distributor networks.

The direct sales channel to retailers is the most explicitly defined segment, encompassing three main types of partners. You see this structure reflected in the quarterly performance, where a loss of program volume at one customer can immediately impact the top line. For instance, in the quarter ending September 28, 2025, sales decreased by $765 thousand, primarily due to a decrease in the number of items included in a program at a major retailer.

To give you a sense of the revenue context across the fiscal 2025 reporting periods:

Period	Net Sales Amount	Key Driver/Context
Fiscal Year 2025 (Ended March 30, 2025)	$87.3 million	Flat compared to fiscal 2024
Q4 Fiscal 2025 (Ended March 30, 2025)	$23.2 million	Increased 2.9% year-over-year, driven by the Baby Boom acquisition
Q2 Fiscal 2025 (Ended September 29, 2024)	$24.5 million	Included $3.4 million in sales from the Baby Boom acquisition

The focus on the end-user-parents and gift-givers-is served through the products sold to the retailers mentioned above, but also directly. Crown Crafts, Inc. also serves this segment directly through its e-commerce presence at www.babybedding.com.

Regarding international reach, the company has been streamlining. Fiscal 2025 included $244,000 in costs associated with the closure of the subsidiary in the United Kingdom. This suggests a shift away from direct international operations toward the distributor networks mentioned in the segment description, which is a common move to reduce fixed overhead.

Management has flagged the concentration risk, noting the extent to which the business is concentrated in a small number of customers. This is a defintely important factor when assessing the stability of the revenue streams flowing from the mass-market and large chain store segments.

• Sales channels include: Mass Merchants, Large Chain Stores, Juvenile Specialty Stores.
• Direct-to-consumer channel: www.babybedding.com.
• International exposure reduced via UK subsidiary closure in FY2025.
• Risk noted regarding concentration in a small number of key customers.

Finance: draft 13-week cash view by Friday.

Crown Crafts, Inc. (CRWS) - Canvas Business Model: Cost Structure

You're looking at the major drains on the bottom line for Crown Crafts, Inc. as of late 2025, focusing strictly on the reported numbers from the full Fiscal Year 2025.

The overall cost profile for Fiscal Year 2025 was significantly shaped by a major non-cash event, alongside the ongoing pressures from operations and a recent acquisition. The company recorded a GAAP net loss of $(9.4) million for the full fiscal year 2025, but the adjusted net income, which strips out the largest non-operating charge, was $1.0 million.

The primary expense categories that hit the income statement for the full fiscal year 2025 are detailed below. Note that the gross margin for FY2025 settled at 24.4%, a decrease of 1.8% compared to fiscal 2024.

Cost/Charge Component	Fiscal Year 2025 Amount	Context
Marketing and administrative expenses	$18.7 million	Represents a 16% increase compared to fiscal 2024
Non-cash goodwill impairment charge	$13.8 million	Recorded during the quarter ended March 30, 2025
Acquisition-related costs (Baby Boom)	$1.2 million	Included within the Marketing and administrative expenses for the year

The cost structure is heavily influenced by external factors impacting the Cost of Goods Sold (COGS) line, even though a total COGS figure isn't provided here. The gross margin compression to 24.4% reflects these pressures.

• Cost of goods sold, heavily impacted by tariffs and sourcing costs.
• Marketing and administrative expenses, which were $18.7 million in FY2025.
• Warehouse and logistics costs, including high rent at the Compton facility.
• Acquisition-related costs, such as the $1.2 million for Baby Boom in FY2025.
• Non-cash goodwill impairment charge of $13.8 million in FY2025.

Tariffs are a clear, quantifiable headwind. For instance, in the fourth quarter of fiscal 2025 alone, there was $324,000 of higher tariffs associated with products imported from China, contributing to the lower gross margin that quarter. The company also noted that the lower full-year gross margin was primarily a result of higher rent at the Compton facility, alongside higher closeout sales. The $1.2 million in Baby Boom costs is part of the overall SG&A, which also included $244,000 related to the closure of the UK subsidiary. That's a lot of one-time hits in one year.

The major non-cash charge of $13.8 million for goodwill impairment was triggered by the depressed market price of the common stock. This single item dwarfs the year's adjusted net income of $1.0 million. Finance: draft 13-week cash view by Friday.

Crown Crafts, Inc. (CRWS) - Canvas Business Model: Revenue Streams

You're looking at the core ways Crown Crafts, Inc. brings in money as of late 2025. The business model heavily relies on moving physical goods through established retail channels, but strategic moves like acquisitions and inventory management also play a role in the final revenue tally.

Sales of infant and juvenile products to retailers remain the primary revenue source for Crown Crafts, Inc. The company designs, markets, and distributes its range of infant, toddler, and juvenile consumer products directly to major retailers. This includes sales to mass merchants, large chain stores, and juvenile specialty stores. This direct-to-retailer model is fundamental to their top line.

The overall financial performance for the most recently completed fiscal year shows the scale of these operations. Net sales for fiscal 2025 totaled $87.3 million. This figure was essentially flat compared to fiscal 2024. The company also generates revenue through other, more specialized channels that support the main retail push.

Revenue from licensed collections and exclusive private label programs is a key component, often bundled within the overall sales figures but representing distinct value propositions. The recent acquisition of Baby Boom Consumer Products, for example, enhanced the portfolio with several popular brand licenses, which feeds into this revenue stream. Similarly, exclusive private label programs provide steady, contract-based income from specific retail partners.

The company also utilizes close-out sales to reduce inventory levels as a tactical revenue driver, though this can impact profitability metrics. For instance, in the fourth quarter of fiscal 2025, the gross margin saw a decrease partly due to a higher mix of these close-out sales, which were executed in preparation for future warehouse consolidation. This shows a dynamic element where inventory management directly translates into revenue realization, even if at a lower margin.

Here is a snapshot of the key financial figures for the fiscal year 2025:

Financial Metric	Amount (Fiscal Year 2025)
Net Sales	$87.3 million
Gross Profit Margin	24.4%
Marketing and Administrative Expenses	$18.7 million
GAAP Net Loss	$(9.4) million
Adjusted Net Income (Excluding Impairment)	$1.0 million

You can see the revenue streams are supported by specific product categories, which contribute to the overall sales volume. The company's product mix includes:

• Sales of bedding and diaper bags.
• Sales of bibs, toys, and disposable products.
• Revenue from acquired entities like Baby Boom.

To be defintely clear on where the money is coming from, the primary sales channels driving the $87.3 million in net sales are:

• Direct sales to mass merchants.
• Direct sales to large chain stores.
• Direct sales to juvenile specialty stores.

Finance: draft 13-week cash view by Friday.