Share this on

Culp 3Q sales down 9.8%

By Furniture Today Staff -- Furniture Today, February 24, 2005

HIGH POINT -- Fabric supplier Culp blamed competition from leather, microfibers and imported goods for a 9.8% sales decline and a $4.9 million net loss in its third quarter.

The company projects a similar sales drop and another loss in the current quarter, but said it is working on consolidating some of its U.S. facilities and growing its offshore sourcing.

“Clearly we are operating in a global economy,” said CEO Rob Culp III, adding he believes U.S. furniture and mattress makers still will rely on U.S. sources for certain products, especially mattress ticking.

Culp reported sales of $69.1 million in the quarter ended Jan. 30. Upholstery fabric sales were down 15.5% to $43.5 million, while sales in the mattress ticking segment rose 2% to $25.6 million.

President Frank Saxon said consumer preference for leather and microfibers, and U.S. furniture manufacturers’ increased use of imported fabrics, led to the upholstery segment decline.

Culp doesn’t sell leather, but is sourcing some microfibers and other fabric from overseas, and has been operating a fabric plant in China for a year. Sourced product sales in the third quarter were up 92% from the same period a year earlier and accounted for almost 20% of the company’s upholstery fabric sales in the quarter.

The $4.9 million net loss compares to a $752,000 profit in the year-earlier third quarter. The latest quarter’s results included an after-tax charge for restructuring and related costs of $3.4 million. Excluding the charge, the net loss was $1.5 million or 13 cents per share.

Saxon said the company expects to complete its restructuring by the end of the current fiscal year, closing two plants and shifting production to other facilities.

Share this on

Culp posts 3Q loss as sales drop 9.8%

Mar 13, 2005

Also by this author

Also by Staff Staff

Featured Company

Brandwise Inc.

Brandwise serves a model - not just an industry - by integrating, automating, and optimizing the entire sales channel, from wholesale Suppliers to their Reps and the Retailers they service. In short, our software helps Reps and Suppliers sell more and create... more

Related Resources

Shopatron: Bicycles & eCommerce

Atlanta International Gift & Home Furnishings Market

Here is a selection of products shown at this month's International Gift & Home Furnishings Market here.

Networking at the 13th annual F/T Leadership Conference

NAPLES, Fla. — Industry executives and guests took the opportunity to network and play golf during down time at Furniture/Today's 13th annual Leadership Conference here this month.