Culp reports Q2 FY20 sales of $65 mn
Culp, a US-based marketer of mattress fabrics, posted 8.8 per cent sales decline to $64.5 million in its second quarter (Q2) fiscal 2021 ended on August 2, 2020, compared to the sales of $70.7 million in the same period last fiscal. Company incurred a net loss during the quarter of $2.7 million compared to net income of $1.8 million in Q2 FY20.
“We are pleased that both our mattress fabrics and upholstery fabrics segments saw better-than-expected increases in orders and shipments during the quarter, particularly during the last eight weeks. We are especially pleased with the substantial sequential improvement compared with the end of the fourth quarter, going from a significant pre-tax loss to profitability,” Iv Culp, president and chief executive officer of Culp, said in a press release.
Gross profit from continuing operations was down to 20.2 per cent to $9.9 million (Q2 FY20: $12.4 million). Selling, general and administrative expenses reported a loss of $8.0 million ($9.1 million). Culp’s income from continuing operations dropped 42.9 per cent to $1.8 million ($3.2 million).
Sales for mattress fabric segment during Q2 FY21 fell 7.1 per cent to $36.1 million ($38.9 million). While, sales for upholstery fabrics were 11.0 per cent down to $28.4 million ($31.9 million).
“To support our future growth plan, we are investing in additional equipment to expand our capacity in North America. We believe the strength and flexibility of our global manufacturing and sourcing operations in the US, Canada, Haiti, Asia, and Turkey have us well positioned to execute our strategy and support the current environment surrounding the changing demands of our customers,” Sandy Brown, president of Culp’s mattress fabrics division, said.