Executive Summary
Crown Crafts delivered a solid Q4 2024 despite ongoing macro headwinds, underscored by the full-quarter contribution from the Manhattan Toy acquisition. Net sales for the quarter rose to $22.58 million from $21.60 million a year earlier, driven by Manhattan Toy versus an offsetting drop from legacy bedding orders. The gross margin expanded to 23.2% in Q4 2024 from 21.9% in the prior-year quarter, largely reflecting reserve-related margin capture in the year-ago period that did not repeat in the current quarter. Management highlighted ongoing cost-management initiatives that helped minimize gross-margin pressure, even as macro conditions persisted. Net income for the quarter was $1.00 million ($0.10 per diluted share), up from $0.83 million ($0.08 per diluted share) year-over-year.
For the full year, Crown Crafts posted net sales of $87.6 million, up from $75.1 million in fiscal 2023, driven primarily by Manhattan Toy (contributing roughly $18.5 million in 2024) and partially offset by softer bedding-related categories. Gross margin for the year stood at 26.2%, slightly below 26.4% in 2023, with the decline attributed to warehousing rent increases in California and offset by favorable product mix. Net income for fiscal 2024 was $4.9 million ($0.48 per diluted share) versus $5.7 million ($0.56 per diluted share) in the prior year. The company reduced debt by $4.6 million over the year and ended 2024 with cash and cash equivalents of approximately $0.83 million while maintaining a robust liquidity profile (current ratio 5.24x).
Management emphasized a constructive growth trajectory ahead through Manhattan Toy’s ramp, expansion of direct-to-consumer capabilities, and select shelf-space gains (including Walmart) anticipated in fiscal 2025. They also flagged ongoing optimization initiatives around warehouse footprint, the Minneapolis lease, and further cross-brand opportunities (NoJo and Sassy) with a view toward strengthening the portfolio while maintaining prudent balance-sheet discipline. The absence of formal earnings guidance remains a feature of the near-term posture, but management indicated plans to expand product offerings and to capitalize on improving macro conditions as 2025 progresses.
Key Performance Indicators
QoQ: -39.84% | YoY:1 092.91%
QoQ: -41.01% | YoY:21.26%
QoQ: -42.35% | YoY:19.80%
Key Insights
Revenue (Q4 2024): $22.58 million vs $21.60 million YoY (+4.5%); QoQ data not provided for prior quarter in the snippet.
Gross Margin (Q4 2024): 23.2% vs 21.9% in Q4 2023 (+1.3pp YoY); margin uplift largely linked to year-ago reserves associated with a bankrupt customer that did not reoccur this year.
Operating Income (Q4 2024): $1.40 million; Operating Margin: 6.20%.
Net Income (Q4 2024): $1.00 million; Net Income Margin: 4.45%; EPS (diluted): $0.098.
Full-Year Revenue (FY2024): $87.60 million ...
Financial Highlights
Revenue (Q4 2024): $22.58 million vs $21.60 million YoY (+4.5%); QoQ data not provided for prior quarter in the snippet.
Gross Margin (Q4 2024): 23.2% vs 21.9% in Q4 2023 (+1.3pp YoY); margin uplift largely linked to year-ago reserves associated with a bankrupt customer that did not reoccur this year.
Operating Income (Q4 2024): $1.40 million; Operating Margin: 6.20%.
Net Income (Q4 2024): $1.00 million; Net Income Margin: 4.45%; EPS (diluted): $0.098.
Full-Year Revenue (FY2024): $87.60 million vs $75.10 million (YoY up ~16.6% driven by Manhattan Toy).
Gross Margin (FY2024): 26.2% vs 26.4% (decline of ~0.2pp due to higher California warehouse rent).
Marketing & Administrative Expenses (FY2024): $16.1 million vs $12.7 million (reflecting Manhattan Toy as a full-year contributor).
Net Income (FY2024): $4.90 million vs $5.70 million; Diluted EPS: $0.48 vs $0.56.
Cash Flow (FY2024): Net cash provided by operating activities $2.98 million; Free cash flow $2.86 million; Capex $0.124 million; Cash at period-end ~ $0.83 million.
Balance Sheet (as of FY2024): Total assets $82.71 million; Total liabilities $31.11 million; Total stockholders’ equity $51.60 million; Cash and cash equivalents $0.83 million; Inventories $29.70 million; Long-term debt $8.10 million; Total debt $23.84 million; Net debt ~$23.01 million.
Liquidity/Leverage: Current ratio 5.24x; Quick ratio 2.40x; Debt-to-capitalization ~31.6%; Payout ratio (dividend) ~80.6% of net income, dividend yield ~6.4% on year-end price.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
22.58M |
4.47% |
-5.13% |
| Gross Profit |
5.08M |
7.52% |
-21.08% |
| Operating Income |
1.40M |
1 092.91% |
-39.84% |
| Net Income |
1.00M |
21.26% |
-41.01% |
| EPS |
0.10 |
19.80% |
-42.35% |
Key Financial Ratios
operatingProfitMargin
6.2%
operatingCashFlowPerShare
$0.29
freeCashFlowPerShare
$0.28
dividendPayoutRatio
80.6%
Management Commentary
Theme: Strategic portfolio expansion and execution of Manhattan Toy integration
- Olivia Elliott: “Fiscal 2024 was a transitional year for the company... the acquisition and integration of Manhattan Toy…”; “we remain well-positioned with our balance sheet and expect to see some of the macro pressure lessen throughout the remainder of the year.”
- Olivia Elliott: on direct-to-consumer progress and cross-brand opportunities: “NoJo’s website is now complete and able to sell direct-to-consumer... by the end of fiscal 2025, we will have all of these subsidiaries selling direct-to-consumer.”
Theme: Operational efficiency and cost management amid macro headwinds
- Craig Demarest: “We were able to minimize the impact on gross margin by proactively managing costs across the business.”
- Olivia Elliott: on the California warehouse rent impact: “The biggest thing that's impacting us right now is the increase in the rent at the warehouse in California.”
Theme: Growth runway and milestones
- Olivia Elliott: Walmart placement for Manhattan Toy to ship in fiscal 2025 first-to-second quarter; initial limited store exposure as a starting point.
- Olivia Elliott: Three Legoland parks planned, two in China, opening summer 2025; largest Legoland park to date in China; more international sales potential.
Theme: Capital allocation and balance sheet discipline
- Olivia Elliott: “our strong balance sheet will allow us to consider favorable acquisition opportunities that can strengthen our existing categories.”
- Olivia Elliott: “we reduced our debt by $4.6 million from the end of fiscal 2023.”
Fiscal 2024 was a transitional year for the company. We started the year on the heels of acquiring and integrating Manhattan Toy as well as exploring the cross-selling opportunities made possible by the acquisition. We remain enthusiastic about the addition of Manhattan Toy as our offerings across the toy category continue to grow.
— Olivia Elliott
No, we had some placement in Walmart already, and that will be shipping sometime between the first and second quarter of fiscal '25. Just a handful of items, and it's in a limited number of stores, but it's a start.
— Olivia Elliott
Forward Guidance
Management does not provide formal forward-looking earnings forecasts for fiscal 2025. They emphasize a cautious but constructive outlook driven by:
- Manhattan Toy ramp: guidance disclosed a long-term target of around $24 million in annual net sales for Manhattan Toy, achievable over a multi-year horizon (noting it will take 3–4 years from acquisition). The company cited Walmart placement in early FY25 as a meaningful near-term topline contributor, albeit incremental and limited in scope initially.
- Direct-to-consumer expansion: NoJo and Sassy direct-to-consumer platforms are expected to be live by end of fiscal 2025, with potential to improve margin and customer access across brands.
- Cross-brand initiatives and product development progress in the toy category, which is identified as the largest portion of sales within the portfolio following Manhattan Toy integration.
- Operational optimization: a long-run plan to potentially consolidate warehouse facilities (California and Manhattan Toy-related sites) with an initial timeline suggesting plans materialize in fiscal 2026 and beyond, underscoring a multi-year cost-structure optimization effort.
- Macro considerations: continued sensitivity to inflation, materials costs, and discretionary consumer spending; management indicated confidence that macro headwinds will ease over time, supporting a gradual improvement in margins and profitability as the mix shifts toward higher-margin toy offerings and a more efficient operating model.
Key factors investors should monitor include: progress of Walmart SKU shipments and consumer acceptance of Manhattan Toy products, execution of DTC platforms (NoJo, Sassy, and others), the pace of warehouse optimization and potential capex, and the potential from Legoland/licensing deals on international growth.