A coating composition includes: an aqueous dispersion of self-crosslinkable core-shell particles, where the core-shell particles include (1) a polymeric core at least partially encapsulated by (2) a polymeric shell having urethane linkages, keto and/or aldo functional groups, and hydrazide functional groups, where the polymeric core is covalently bonded to at least a portion of the polymeric shell, and a hydrophobic additive including a wax and/or a silicon-containing compound, where the hydrophobic additive is non-reactive with the polymeric core and the polymeric shell. A substrate coated with a coating formed from the coating composition and a method for improving stain resistance of a substrate are also disclosed.