Business
Culp Announces Revised Expectations for Second Quarter Fiscal 2022
HIGH POINT, N.C.--(BUSINESS WIRE)-- Culp, Inc. (NYSE: CULP) (together with its consolidated subsidiaries, “CULP”) today announced that, based on unaudited
About this update from Culp, Inc.
[{"type":"text","content":" HIGH POINT, N.C.--(BUSINESS WIRE)--\nCulp, Inc. (NYSE: CULP) (together with its consolidated subsidiaries, “CULP”) today announced that, based on unaudited preliminary results and current estimates, the company expects net sales for the second quarter of fiscal 2022 to be down approximately 11 percent as compared to the first quarter of fiscal 2022, and expects consolidated operating income (income from operations) to be in the range of $1.3 million to $1.6 million for the second quarter. These projected results are lower than the company’s previously announced expectation for net sales and consolidated operating income for the second quarter to be comparable to the first quarter of fiscal 2022.\n\nCommenting on the announcement, Iv Culp, president and chief executive officer of Culp, Inc., said, “The revised expectations for the second quarter of fiscal 2022 reflect lower than expected sales, primarily for our upholstery fabrics segment. Sales for this segment were significantly affected by COVID-19-related shutdowns of our sourcing partners and customers in Vietnam throughout most of the quarter. These shutdowns were expected to be short term, but lasted significantly longer than anticipated and limited our ability to ship orders both within and outside of Asia. Sales were also pressured in both our mattress fabrics and upholstery fabrics segments by our customers’ supply chain constraints for non-fabric components and labor shortages at their U.S. facilities, causing customers to delay taking orders, particularly in the second half of the quarter. Additionally, sales for our mattress fabrics segment were affected by disruptions that delayed shipments arriving from Asia, as well as labor shortages affecting production at our facilities in the U.S. and Canada.\n\n“While we are experiencing a challenging business environment due to these ongoing macro market issues, the shutdowns that affected our Vietnam customers and sourcing partners during the second quarter have now been lifted, allowing our upholstery fabrics segment to resume shipping at normalized capacity. Despite the headwinds, Culp remains well positioned for the long term with our innovative products, creative designs, and resilient global manufacturing platform. Above all, regardless of market conditions, our business foundation is solid, and we remain focused on m...