Crown Crafts (CRWS) 15th Annual Midwest IDEAS Investor Conference summary

Company Overview and Recent Acquisitions

• Operates in the infant, toddler, and juvenile consumer products industry, leveraging strong licensed brands and private labels.

• Completed two major acquisitions: Manhattan Toy in March 2023 and Baby Boom in July 2023/2024, expanding product lines, licenses, and market reach.

• Baby Boom acquisition adds toddler bedding and diaper bags, expected to contribute $20 million in annual sales, primarily through national retailers.

• Manhattan Toy acquisition brought higher-end toys, plush, dolls, and the LEGO license, opening new specialty and international channels.

• Strategic plan focuses on organic growth, integrating acquisitions, expanding direct-to-consumer sales, and technology investments.

Product Categories and Distribution

• Toys are the largest business segment (38%), followed by bibs (22%), toddler bedding (19%), infant bedding (17%), and disposables (4%).

• Walmart is the largest customer (42%), with Amazon (19%), Target (8%), national retailers (10%), and international sales (6%).

• Manhattan Toy acquisition introduced LEGOLAND and specialty stores as new distribution channels, expanding international reach.

• Diaper bags, a new category from Baby Boom, are seen as a major growth opportunity, especially internationally and online.

• Strong license portfolio includes Disney, LEGO, Bluey, Cocomelon, Marvel, and Warner Brothers.

Operational and Organizational Updates

• Management team has deep experience, with many members serving over 20 years.

• Recent cost efficiencies include closing the London/UK office, merging Manhattan Toy into Sassy Baby, and reducing headcount.

• Plans to consolidate warehousing for improved efficiency and invest further in technology and organizational structure.

• New product development and cross-functional teams are emphasized for innovation and operational flexibility.

• Direct-to-consumer sales to be expanded across most product categories within 4–12 months.