Culp Posts Respectable Q2 Financial Results, Issues Net Sales Forecast

Culp, Inc. CULP shares are trading higher in Monday's after-hours session on the heels of the company's second-quarter earnings. Here's what's happening.

What To Know: Culp reported quarterly losses of 19 cents per share, topping the analyst consensus estimate of losses of 22 cents, a 80.81% increase over losses of 99 cents per share from the same period last year.

The company reported quarterly sales of $58.70 million which beat analyst expectations of $57.80 million. The figure represented a 0.55% increase over sales of $58.38 million the same period last year.

The company provided a detailed look at the respective performances of its business segments. For example, its Mattress Fabrics Segment generated sales of $31.4 million, an increase of 19.6% compared with sales of $26.2 million in the same period in 2023.

However, its Upholstery Fabrics Segment posted sales of $27.3 million, down 14.9% versus sales of $32.2 million in the same period in 2023.

Culp stated that third-quarter consolidated Net Sales are expected to be sequentially comparable to the second quarter of fiscal year 2024 and moderately higher compared to the third quarter of fiscal year 2023.

Iv Culp, president and CEO of Culp, Inc., said, "We are pleased to report both sequential and year-over-year improvement in our consolidated sales and operating performance for the second quarter, a solid outcome considering the challenging macro environment for furniture and bedding."

"These results, which were in line with our expectations, reflect the strategic business transformation initiatives underway in both divisions that are focused on driving performance despite ongoing demand softness."

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CULP Price Action: Shares of CULP were up 5.85% at $4.96 in the after-hours session at the time of publication, according to Benzinga Pro. 

Photo: Niels Zee from Pixabay