HIGH POINT — Culp Inc. reported internet gross sales of $74.6 million for the second quarter fiscal 2022 ended Oct. 31, down 3% from the identical quarter in 2020. Whereas mattress material gross sales had been up 2.1%, upholstery material gross sales dipped 8.5% for the interval.
Internet revenue got here in at $851,000 for the quarter, or 7 cents per diluted share, as in contrast with internet revenue of $2.4 million, or 19 cents per share, for the year-ago interval.
Within the earnings launch, Culp introduced a 5% enhance in its quarterly money dividend, to 11.5 cents per share, starting within the third quarter of fiscal 2022.
Culp cited ongoing uncertainty within the macroeconomic surroundings and stated it expects present headwinds to proceed to strain outcomes all through the second half of fiscal 2022, particularly through the third quarter. The corporate is withdrawing its beforehand issued annual steering for fiscal 2022 and is offering a restricted outlook for the third and fourth quarters.
The corporate’s internet gross sales and consolidated working revenue (revenue from operations) for the third quarter of fiscal 2022 are anticipated to be sequentially corresponding to the second quarter of fiscal 2022. It expects a robust enchancment in internet gross sales and working revenue for the fourth quarter of fiscal 2022, as in contrast with each the third quarter of fiscal 2022 and the fourth quarter of fiscal 2021.
“As beforehand introduced, our outcomes for the second quarter mirrored decrease than anticipated gross sales, primarily for our upholstery materials section,” stated Iv Culp, president and CEO. “A number of exterior elements affected our gross sales outcomes for the quarter, significantly COVID-related shutdowns in Vietnam and buyer provide chain constraints for non-fabric elements, whereas profitability remained pressured in each of our companies by the continued fast rise in freight, uncooked materials, and labor prices.”
He added that the corporate expects to see a “significant rebound” in enterprise starting within the fourth quarter and persevering with into the subsequent fiscal yr.
Culp expects to open its new Haiti facility through the third quarter, growing its capability for cut-and-sewn upholstery kits.