Fabric supplier Culp Inc. said sales rose 7.9 percent to $61.4 million in the quarter ended April 30, and the company trimmed its net loss by more than $1 million to $4.7 million or 38 cents per share.
The High Point, North Carolina-based company said the results, which covered the fourth quarter of its fiscal year, included a 3.1 percent increase in mattress fabric sales. That was better than expected but wasn’t enough to offset weak demand and a significant drop in mattress industry units earlier in the fiscal year.
Sales for the fiscal year ended April 30 were down 20.3 percent to $234.9 million, and the company’s net loss widened to $31.5 million or $2.57 per share. That compared with a net loss of $3.2 million or 26 cents per share in the previous fiscal year. The most recent year included several one-time inventory impairment charges, markdowns and restructuring expenses.
Fiscal year sales of mattress fabrics tumbled 27.1 percent to $111 million. Upholstery fabric sales fell 13.1 percent to $123.9 million in the same period.
“Our sales and operating results for the fourth quarter were better than expected, with solid improvement despite ongoing demand softness in the domestic mattress and residential home furnishings industries,” said Iv Culp, president and CEO. “The strong sequential improvement in our mattress fabrics segment was driven primarily by the roll out of new customer programs during the period, which were priced in line with current costs and are expected to grow this segment’s market position in fiscal 2024.”
He noted that, while fiscal 2023 was a difficult year, the company maintained a strong balance sheet and continued to invest in its global manufacturing platform.
“While we expect demand softness in the mattress and residential home furnishings industries will continue, our market position is strong, and we are diligently focused on achieving sustainable improvement and returning to profitability in fiscal 2024,” Culp said. “We are well positioned for the long term, and our innovative product offerings, creative designs, and global manufacturing and sourcing platform will support us into the future, especially when market conditions improve.”
