In its first quarter of fiscal 2022, which ended Aug. 1, Culp Inc. reported net income of $2.3 million, compared with a net loss of $2.7 million for the prior-year period. (This included a $3.7 million noncash net income tax charge).
With quarterly earnings per diluted share of $0.18, the High Point, North Carolina-based textile major surprised Wall Street, beating the Zacks Consensus Estimate of $0.13. This was the fourth quarter in a row in which Culp’s EPS surpassed consensus estimates.
Culp’s net sales rose sharply to $83 million, up 28.8% compared with the pandemic-impacted first quarter of fiscal 2021. Mattress fabrics sales rose 19.3% and upholstery increased 41%.
For the full fiscal year, the company anticipates income and net sales will continue increasing moderately.
“While we are optimistic about the ongoing strength of our sales trends, we continue to navigate headwinds relating to rising freight and raw material costs, labor shortages, customers’ supply chain constraints for nonfabric components, and other pandemic-related challenges,” said Iv Culp, president and chief executive officer. “Our previously implemented price increases for both of our businesses helped offset certain inflationary pressures and foreign currency fluctuations to some extent during the first quarter. We are now implementing further pricing action in both businesses.”