Culp, Inc. Provides Consolidated Earnings Guidance for the Second Quarter of Fiscal 2024
August 30, 2023 at 04:15 pm EDT
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Culp, Inc. provided earnings guidance for the second quarter of 2024. Due to the continued volatility in the macro-environment, the company is providing only limited financial guidance for the second quarter of fiscal 2024. The company?s consolidated net sales for the second quarter are expected to be comparable to the second quarter of fiscal 2023, driven by further improvement in the mattress fabrics segment, but offset by lower residential upholstery fabric sales.
The company expects a consolidated operating loss (loss from operations) for the second quarter of fiscal 2024 that is in the range of $2.2 million to $2.6 million, a significant improvement compared to the $11.9 million operating loss for the prior-year period (which included approximately $6.0 million relating to certain inventory impairment charges, losses from inventory close out sales, and greater than normal inventory markdowns).
Culp, Inc. is a marketer of mattress fabrics for bedding and upholstery fabrics for residential and commercial furniture. The Company markets a variety of fabrics to its global customer base of bedding and furniture companies, including fabrics produced at the Company's manufacturing facilities and fabrics sourced through other suppliers. The Company operates through two segments. The mattress fabrics segment markets primarily knitted and woven fabrics, as well as sewn covers made from those fabrics, which are used in the production of bedding products, including mattresses, foundations, and mattress sets. The upholstery fabrics segment markets a variety of fabric products that are used principally in the production of residential and commercial upholstered furniture, including sofas, recliners, chairs, loveseats, sectionals, sofa-beds, and office seating, as well as window treatment products and installation services for customers in the hospitality and commercial industries.