Skip to main contentSkip to main content
You are the owner of this article.
You have permission to edit this article.
Edit

Culp issues earnings warning for its second quarter

  • 0

Culp Inc. provided Tuesday an earnings warning for its second quarter of fiscal 2023. It expects to issue the second-quarter report in early December.

The High Point fabrics manufacturer projected second-quarter net sales of $58 million.

It estimated an operating loss in the range of $11.7 million to $12.2 million. Contributing to the loss would be: a $5 million inventory impairment charges and loss on the sale of raw material and finished goods inventory associated with the company’s mattress fabrics segment; $1 million in higher-than-normal inventory markdowns associated with the company’s residential upholstery fabrics business; $700,000 in restructuring charges related to its upholstery fabric segment’s cut and sew platform in China.

In September, Culp reported that a 24.4% decline in sales led to a $5.7 million loss in its first quarter. Sales were at $62.6 million, with mattress fabrics down 31.8% to $29.4 million and upholstery fabrics down 18.9% to $33.2 million.

Iv Culp, the manufacturer’s president and chief executive, said in a statement that the revised expectations “reflect continued demand weakness, particularly for our mattress fabrics segment, along with inventory impacts within both segments.”

“While these decisions will result in a higher operating loss for the second quarter, we believe having the financial impact behind us will position us for improvement during the second half of fiscal 2023.”

336-727-7376

@rcraverWSJ

0 Comments
* I understand and agree that registration on or use of this site constitutes agreement to its user agreement and privacy policy.

Related to this story

Most Popular

Get up-to-the-minute news sent straight to your device.

Topics

Breaking News

News Alert