Culp sales remain flat, challenges impact operational performance

HIGH POINT – Third quarter challenges affected Culp Inc.’s sales and operating performance for the period ended Jan. 30, according to the company’s president and chief executive.

Net sales were $80.3 million, up 1.2% from the prior year period, with mattress fabric sales down 0.4% and furnishing fabrics up 2.7% compared to the third quarter of last year.

The company reported a net loss of $289,000, or 2 cents negative per diluted share, compared to net income of $2.1 million, or 17 cents per diluted share, for the prior year period. Net loss and diluted earnings per share for the period were significantly impacted by an abnormally high tax rate due to the company’s allocation of income between the United States and its foreign jurisdictions for the quarter.

“While sales were generally in line with expectations and reflected stable demand for our products compared to the prior year period, revenues from our mattress fabrics segment were impacted by various factors, including a decline in demand for sewn mattress covers due to high customer inventory levels, customer delays in new product rollouts, and some weakening in the U.S. mattress industry due to

traditional seasonal slowdowns, the impact of the Omicron variant and inflationary pressures affecting consumer spending,” said Iv Culp, President and CEO.

The Company’s net sales for the fourth quarter of Fiscal 2022 are expected to be slightly lower than the same period of Fiscal 2021. The Company’s consolidated operating income for the fourth quarter is expected to be comparable to that of the fourth quarter of fiscal 2021.

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