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Culp Inc. (CULP) has submitted its 10-Q filing for the quarterly period ended October 27, 2024.
The filing reveals a decrease in net sales to $55.7 million from $58.7 million in the same quarter the previous year. This decline is attributed to reduced demand in the mattress and upholstery fabrics segments.
The company's gross profit for the quarter was $6.0 million, down from $8.0 million in the previous year. The decrease is due to lower sales volumes and manufacturing inefficiencies.
Selling, general, and administrative expenses decreased to $9.4 million from $10.0 million, reflecting lower incentive compensation and professional fees.
Culp reported a net loss of $5.6 million for the quarter, compared to a net loss of $2.4 million in the previous year. This increase in net loss is due to restructuring expenses and lower sales.
Restructuring expenses for the quarter were $2.0 million, primarily related to the consolidation of operations in the mattress fabrics segment.
The company's cash and cash equivalents were $10.5 million as of October 27, 2024. Culp had outstanding borrowings of $4.1 million under its credit agreement in China.
Culp's effective income tax rate for the six-month period was (1.5%), compared to (26.8%) in the previous year. The rate was affected by the mix of earnings between U.S. and foreign operations.
The filing also details the company's restructuring plan, which includes the gradual discontinuation of operations at its Canadian facility and consolidation of its mattress cover operation in Haiti.
Culp's management continues to focus on aligning its operations with current demand trends and leveraging strategic supply relationships to optimize its business segments.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Culp Inc. quarterly 10-Q report dated December 6, 2024. To report an error, please email earnings@qz.com.