Fri, Sep 6, 1:35 PM (106 days ago)
Culp, Inc. reported a net loss of $7,261,000 for the three months ended July 28, 2024, compared to a loss of $3,342,000 for the same period in 2023. Net sales were relatively flat at $56,537,000, a slight decrease from $56,662,000 year-over-year. The gross profit margin decreased significantly to 9.0% from 12.5%, impacted by restructuring costs of $2,631,000, primarily related to the mattress fabrics segment's consolidation and operational changes. Cash flow from operations showed an improvement, with net cash used of $206,000, down from $4,435,000 in the prior year. The company ended the quarter with $13,472,000 in cash, bolstered by $4,010,000 in borrowings from a line of credit in China. Total liabilities increased to $60,015,000 from $56,785,000, reflecting ongoing restructuring efforts and operational challenges. The restructuring plan aims to streamline operations and is expected to incur total charges of about $5.1 million. Future performance remains uncertain due to macroeconomic pressures affecting consumer spending and the housing market. The company anticipates continued challenges but is focused on improving operational efficiency and profitability.