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Culp Inc. (CULP) has submitted its 10-Q filing for the quarterly period ended January 26, 2025.
The filing reports a decrease in net sales to $52.3 million from $60.4 million in the same quarter the previous year. The decline is attributed to reduced demand in the domestic bedding and home furnishings industries.
Cost of sales for the quarter was $45.9 million, representing 88% of sales, compared to 87% in the same quarter of the previous year. The increase in cost ratio is due to manufacturing inefficiencies related to restructuring activities.
The company reported a gross profit of $6.3 million for the quarter, compared to $7.7 million in the previous year, with the decline attributed to lower sales and restructuring charges.
Restructuring and restructuring-related charges for the quarter were $2.3 million, primarily associated with the closure of Culp's Canadian manufacturing operations and consolidation efforts.
Selling, general, and administrative expenses decreased to $8.6 million from $9.5 million, reflecting cost-saving measures.
Net loss for the quarter was $4.1 million, compared to $3.2 million in the previous year. The loss is attributed to lower sales and restructuring costs.
Cash used in operating activities was $9.4 million, while cash used in investing and financing activities was $620,000 and $5.3 million, respectively.
Culp had a working capital of $37.9 million as of January 26, 2025. The company continues to focus on restructuring its operations to align with current market conditions.
The filing also details the company's efforts to consolidate its mattress fabrics operations and reduce costs, including the planned sale of its Canadian facility.
Culp does not anticipate cash dividend payments to common stockholders in the near future.
The company identified ongoing challenges in the macroeconomic environment, affecting consumer demand and overall business conditions.
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 March 7, 2025. To report an error, please email earnings@qz.com.