Company Summary: Crown Crafts, Inc.

Business Overview

• Type: Consumer products company specializing in infant, toddler, and juvenile products.
• Incorporation: Originally formed as a Georgia corporation in 1957; reincorporated in Delaware in 2003.
• Headquarters: Gonzales, Louisiana.
• Main Operations: Indirectly operating through three wholly-owned subsidiaries:
  • NoJo Baby & Kids, Inc.
  • Sassy Baby, Inc.
  • Manhattan Toy Europe Limited

Product Offerings

• Infant and toddler bedding
• Diaper bags
• Bibs
• Disposable and reusable feeding products
• Toys (developmental toys, dolls, plush toys)
• Nursery and toddler room décor
• Swaddle blankets, burp cloths, mats, toilet seat covers, and other soft goods

Intellectual Property

• Marketed under trademarks owned by the company:
  • Sassy®
  • Manhattan Toy®
  • NoJo®
  • Baby Boom®
  • Neat Solutions®
• 50% of gross sales in FY2025 were from licensed products, including 21% from Disney licenses (e.g., Marvel, STAR WARS).

Customers & Revenue

• Top Customers (FY2025):
  • Walmart Inc.: ~47% of gross sales
  • Amazon.com Inc.: ~19% of gross sales
• Total Revenue (FY2025): Approximately $87.3 million (slight decrease from FY2024: $87.6 million)
• International Sales: 8% of total gross sales in FY2025 and FY2024.
• Number of Employees: 168 full-time employees as of May 31, 2025.
• The company does not have long-term purchase agreements with customers but makes most sales directly to retailers, including mass merchants, large chain stores, specialty stores, grocery, drug stores, restaurants, wholesale clubs, and internet retailers.

Recent Major Activity

• Acquisition (July 19, 2024):
  • Acquired substantially all assets of Baby Boom Consumer Products, inc. for $16.3 million in cash.
  • Funding: $8 million term loan plus additional revolving credit borrowing from CIT.
  • This acquisition added approximately $11.9 million in FY2025 sales of bedding and diaper bags.
• Financial Highlights FY2025:
  • Net Loss: $(9.36 million) (compared to net income of $4.89 million in FY2024)
  • Gross Profit: $21.27 million (24.4% of sales)
  • Operating Expenses: $18.69 million
  • The significant net loss was impacted by a $13.77 million goodwill impairment charge, increased royalty expenses, rent, tariffs, and costs related to the Baby Boom acquisition.

Key Risks & Market Conditions

• Heavy reliance on two main customers (66% of sales).
• Dependence on licensing agreements, many of which expire in FY2025 and FY2026, including Disney licenses.
• Facing tariffs, especially on products sourced from China, raising costs.
• Industry is highly competitive with larger competitors and direct Chinese sellers.
• Business sensitive to geopolitical tensions, economic fluctuations, and consumer preferences.

Summary

Crown Crafts designs, manufactures, and markets a broad range of infant and juvenile soft goods, toys, and decor, primarily in the U.S., with a significant licensing component (notably Disney). The company has a relatively small workforce, significant dependence on a few key customers, and recent major activity includes acquisition and restructuring efforts to support growth amidst industry and geopolitical challenges.