Crown Crafts Reports Softer Q3 Amid Tariff Challenges

Infant and juvenile products maker sees sales and margins decline, but insurance proceeds boost net income.

Published on Feb. 14, 2026

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Crown Crafts (NASDAQ:CRWS) reported fiscal 2026 third-quarter results that reflected a softer demand environment and higher tariff-related costs, while net income benefited from insurance proceeds tied to a prior acquisition. Management said it remains focused on pricing, cost actions, conservative inventory management, and cash generation as it navigates uneven consumer spending and elevated U.S. tariffs.

Why it matters

Crown Crafts is a leading designer and distributor of infant, toddler and juvenile consumer products, so its quarterly results provide insight into the broader trends affecting this category. The company's challenges with tariffs and softening consumer demand highlight the pressures facing many businesses operating in the current economic environment.

The details

For the third quarter ended December 28, 2025, Crown Crafts posted net sales of $20.7 million, down from $23.4 million in the prior-year quarter. Gross profit declined to $4.9 million from $6.1 million, and gross margin fell to 23.5% from 26.1%. Management attributed the year-over-year gross margin decline primarily to higher tariffs on products imported from China, as well as one-time licensing expenses related to an insurance claim. Marketing and administrative expenses increased by $600,000 to $5.0 million, driven by severance expenses tied to operational consolidation efforts.

  • For the third quarter ended December 28, 2025, Crown Crafts reported results.

The players

Crown Crafts

A U.S.-based designer, marketer and distributor of infant, toddler and juvenile consumer products.

Olivia Elliott

President and CEO of Crown Crafts.

Claire Spencer

CFO of Crown Crafts.

Target

A major retailer that has moved certain programs to private label and direct sourcing, resulting in Crown Crafts losing some categories there in the past.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

The takeaway

Crown Crafts is navigating a challenging environment marked by softer consumer demand, elevated tariffs, and shifts in retailer buying patterns. The company is focused on cost-cutting, pricing actions, and cash flow generation as it works to maintain profitability and market share in the infant and juvenile products category.