Published on 7 Mar 2024 on Zacks via Yahoo Finance

Culp's (CULP) Q3 Earnings Miss Estimates, Revenues Beat

Culp, Inc. CULP reported mixed third-quarter fiscal 2024 (ended Jan 28) results, with earnings missing the Zacks Consensus Estimate and net sales surpassing the same. On a year-over-year basis, net sales increased and the adjusted loss improved.Despite the ongoing demand softness, the company benefited from strong contributions from both of its core business segments. Improved pricing and margin also contributed to the positive.CULP plans to enhance its mattress fabrics segment to boost sales and improve efficiency. The company aims to win new placements to drive revenues and increase margins despite the anticipated impact of the Chinese New Year on its fourth-quarter revenues. However, the industry demand deteriorated more than expected, especially in the upholstery fabrics segment.

Inside the Numbers

In the fiscal third quarter, the company reported an adjusted loss of 26 cents per share, which was wider than the Zacks Consensus Estimate of 16 cents. Culp reported an adjusted loss of 68 cents in the prior-year quarter.Net sales of $60.4 million surpassed the consensus estimate of $59 million by 2.5% and increased 15% from the year-ago quarter’s figure.