Douglas Ruth's questions to Crown Crafts Inc (CRWS) leadership • Q1 2026
Question
Douglas Ruth of Lenox Financial Services asked about potential opportunities from Target's changing sourcing strategy, the company's ability to be profitable with sustained tariffs, and international expansion plans for the Manhattan Toy brand. He also inquired about specific product performance, including a Sassy product feature, the stabilization of Manhattan Toy operations, plush sales at LEGOLAND Shanghai, and the reception of redesigned Stella dolls.
Answer
CEO Olivia Elliott stated that the company hopes to gain business from Target's sourcing shift and is mitigating tariffs through customer price increases to achieve profitability. She explained that Manhattan Toy's international sales will be expanded through a distributor model, and that the brand's operations have stabilized. Elliott confirmed positive reorders from LEGOLAND Shanghai and noted that the redesigned Stella dolls are doing well, though overall sales were impacted by tariff management strategies.