By Shares of Culp experienced a boost on Tuesday following the company’s announcement of a narrowed loss in the fiscal second quarter. The stock saw a 15% increase, reaching $5.69, during midday trading. Moreover, shares have risen by 24% this year.
Improved Financial Results
Culp, based in High Point, N.C., disclosed a loss of $2.4 million, or 19 cents a share, for the three months ended Oct. 29. This represents a significant improvement when compared to the loss of $12.2 million, or 99 cents a share, from the same period last year.
Furthermore, the company reported an overall sales increase of 0.6% from last year, amounting to $58.7 million. This rise is mainly attributed to a nearly 20% boost in mattress fabric sales, offsetting weaker upholstery fabric sales.
Future Challenges and Forecasts
While Culp acknowledges the ongoing challenges posed by weakened consumer spending, the company remains cautiously optimistic about its future sales performance. It forecasts sales to remain flat sequentially but expects a moderate increase year-on-year in the fiscal third quarter.
Additionally, Culp anticipates a narrower operating loss in the fiscal third quarter compared to the same period last year.
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