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HIGH POINT, N.C. - Culp, Inc. (NYSE:CULP) reported disappointing third quarter results, with earnings and revenue falling short of analyst expectations amid ongoing weakness in the home furnishings industry. The company’s shares dropped 2.7% following the announcement.
The textile manufacturer posted a net loss of $0.33 per share for the quarter ended January 26, 2025, significantly wider than the $0.04 per share profit analysts had forecast. Revenue came in at $52.3 million, down 13.5% YoY and well below the $62 million consensus estimate.
Culp’s consolidated net sales declined 6.1% sequentially, with mattress fabrics sales down 4.8% and upholstery fabrics sales falling 7.8% compared to the previous quarter. The company cited macro industry weakness, fewer shipping days due to holidays, and weather-related disruptions as factors impacting sales.
Despite the revenue decline, Culp reported continued improvement in its mattress fabrics segment operating performance, with a 58.3% sequential reduction in operating loss. The upholstery fabrics segment remained profitable despite challenging conditions.
"We achieved further sequential improvement in our operating results for the quarter, driven largely by the positive effects of our mattress fabrics restructuring activity," said Iv Culp, President and CEO.
Looking ahead, Culp expects some year-over-year growth in consolidated net sales for the fourth quarter, with an increase in mattress fabrics offset by pressure on residential upholstery fabric sales. The company anticipates continued sequential improvement in adjusted EBITDA and a foundation for returning to consolidated operating income in fiscal 2026.
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