Crown Crafts: Near 52-Week Lows And (Near) A 5% Dividend

Both the negative and positive aspects of an investment in Crown Crafts (CRWS) are straight forward. First, however, let us have a brief overview of CRWS for those unfamiliar with the company.
An overview of Crown Crafts Crown Crafts, Inc. operates indirectly through its wholly-owned subsidiaries, Crown Crafts Infant Products, Inc. and Hamco, Inc. in the infant and toddler products segment within the consumer products industry. The infant and toddler segment consists of infant and toddler bedding and blankets, bibs, soft bath products, disposable products and accessories. Sales of the Company products are generally made directly to retailers, which are primarily mass merchants, mid-tier retailers, juvenile specialty stores, value channel stores, grocery and drug stores, restaurants, internet accounts and wholesale clubs. The Company's products are manufactured primarily in Asia and marketed under a variety of Company-owned trademarks, under trademarks licensed from others and as private label goods."
(From CRWS 10-K)
The stated causes of decline Since October of last year, Crown Crafts has suffered a precipitous drop from a 52-week high of $9.75 to a 52-week low of $5.40. As I write this article, the shares last closed at $6.55.
Investors are rightfully concerned after CRWS missed FY 17 sales estimates for all four quarters. Sales suffered a decline of nearly 22% YoY, from over 84 million in FY 16 to 66 million in FY17.
Sales fell 12.5% in the quarter... Read more

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