CRWS

• At the August 10, 2026 Annual Meeting, stockholders approved the Amended and Restated 2021 Incentive Plan, increasing available shares from 1,200,000 to 2,450,000.
• The Compensation Committee administers the plan and approved new award certificate forms for options, restricted stock, and performance shares.
• Class III directors Ixchell C. Duarte and Tatiana G. Ferreira were elected to serve until the 2029 Annual Meeting.
• Stockholders ratified KPMG LLP as independent auditor for fiscal year ending March 28, 2027.

2.02 Results of Operations and Financial Condition · 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements · 5.07 Submission of Matters to a Vote of Security Holders · 9.01 Financial Statements and Exhibits

• Gross profit margin improved to 22.9% from 18.3% in the prior-year quarter.
• Full year fiscal 2026 net income was $1.8 million, compared to a net loss of $9.4 million in fiscal 2025.
• The company declared a quarterly dividend of $0.08 per share on Series A common stock, payable July 2, 2026.
• Management expressed confidence in the company's positioning and ability to capitalize on any improvement in consumer demand.

2.02 Results of Operations and Financial Condition · 9.01 Financial Statements and Exhibits

• Gross profit margin decreased to 23.5% from 26.1% in the prior-year quarter.
• Net income increased to $1.5 million from $0.9 million in the prior-year quarter, helped by $2.5 million in insurance proceeds.
• The company declared a quarterly dividend of $0.08 per share, payable April 3, 2026.
• Manhattan Toy's Groovy Girls relaunch is announced, with availability starting May 2026.

2.02 Results of Operations and Financial Condition · 9.01 Financial Statements and Exhibits

• Gross profit margin decreased to 27.7% from 28.4% in the prior year quarter, primarily due to increased tariff costs on imports from China.
• Net income grew to $1.2 million, or $0.11 per share, from $0.9 million, or $0.08 per share, in the prior year quarter.
• Marketing and administrative expenses improved to 19.9% of net sales from 22.3% in the prior year period.
• The Board declared a quarterly cash dividend of $0.08 per share, payable on January 2, 2026, to stockholders of record on December 12, 2025.

2.02 Results of Operations and Financial Condition · 9.01 Financial Statements and Exhibits

• On October 27, 2025, Crown Crafts, Inc. notified Donna E. Sheridan that she is terminated as President and CEO of subsidiary NoJo Baby & Kids, Inc., effective that same day.
• Her employment with NoJo will terminate effective November 30, 2025.
• Benefits are described in the Company's Proxy Statement filed June 27, 2025, under sections on employment arrangements and potential payments upon termination.
• The Company thanked Ms. Sheridan for her past services and wished her well.

5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements

• Gross profit margin decreased to 22.7% from 24.5%, primarily due to increased tariffs on products imported from China.
• Net loss was $1.10 million, or $0.10 per share, compared to a net loss of $0.3 million, or $0.03 per share, in the prior-year quarter.
• The Baby Boom acquisition added $2.1 million in net sales during the quarter.
• The Board declared a quarterly cash dividend of $0.08 per share, payable on October 3, 2025.

2.02 Results of Operations and Financial Condition · 5.07 Submission of Matters to a Vote of Security Holders · 9.01 Financial Statements and Exhibits

• Q4 GAAP net loss was $(10.8) million, or $(1.04) per diluted share; adjusted net loss was $(429,000), or $(0.04) per diluted share.
• Fiscal 2025 net sales were $87.3 million, essentially flat year-over-year, with a gross margin of 24.4%.
• Fiscal 2025 GAAP net loss was $(9.4) million, or $(0.90) per diluted share; adjusted net income was $1.0 million, or $0.10 per diluted share.
• The company recorded a non-cash goodwill impairment charge of $13.8 million in Q4 and declared a quarterly dividend of $0.08 per share.

2.02 Results of Operations and Financial Condition · 9.01 Financial Statements and Exhibits

• Claire K. Spencer was appointed Vice President on June 16, 2025, and will become CFO, Secretary, and principal financial and accounting officer on June 30, 2025.
• Spencer's employment agreement provides a minimum base salary of $250,000, with annual bonus potential up to 40% (target) or 60% (maximum) of salary based on EBITDA targets.
• Spencer received a grant of 15,000 shares of common stock under the 2021 Incentive Plan, vesting on June 16, 2027.
• The employment agreement includes severance provisions for termination without cause or for good reason, and restrictive covenants.

5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements · 9.01 Financial Statements and Exhibits