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CULP NYSE· Culp Inc
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CULP NYSE· Culp Inc
Earnings report Q4 2023

CULP, Inc. Reports Stable Revenue in Latest Quarter

Segments of Revenue

CULP, Inc. reported net sales of $58.7 million for the three months ended October 29, 2023, which remained relatively stable compared to the same period last year when net sales were $58.4 million. The company's revenue primarily comes from its various segments, including upholstery fabrics and mattress fabrics.

Strengths

Despite the challenging economic environment, CULP, Inc. managed to maintain stable revenue in the latest quarter. This can be attributed to the company's strong market position and its ability to meet customer demand for its products. Management highlighted that the stability in revenue was driven by consistent sales in both the upholstery fabrics and mattress fabrics segments. Additionally, the company's focus on innovation and product development has allowed it to stay competitive in the market.

Challenges

CULP, Inc. faced certain challenges in the latest quarter, as reflected in its financial performance. The company reported a gross loss of $2.2 million, compared to a gross profit of $7.9 million in the same period last year. This decline in gross profit can be attributed to higher costs of sales, which amounted to $50.8 million, compared to $60.6 million in the previous year. The increase in costs of sales could be due to various factors, such as higher raw material prices or increased production costs.

Noteworthy

It is worth noting that CULP, Inc. reported a loss from operations of $2.2 million in the latest quarter, compared to a loss of $11.9 million in the same period last year. This improvement in operating loss can be attributed to lower selling, general, and administrative expenses, which amounted to $10.0 million, compared to $9.1 million in the previous year. The company also reported a decrease in restructuring expenses, which further contributed to the reduction in operating loss.

Summary

CULP, Inc. reported stable revenue in the latest quarter, despite facing challenges in terms of higher costs of sales. The company's ability to maintain consistent sales in its upholstery fabrics and mattress fabrics segments demonstrates its strong market position. However, the decline in gross profit highlights the need for the company to address cost-related issues. Overall, CULP, Inc. showed resilience in a challenging economic environment and managed to improve its operating loss compared to the same period last year.

Source documents

Form 10-Q  filed on Dec 08, 2023
90 pages scanned

Reference data

Company financials Q4 revenue 58.7M
Analyst estimates Q4 EPS missed by -16.82%
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