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Culp Inc. announced its Q4 financial results and the company posted a productive quarter.
Net sales were $76.9 million—up 10.5 percent over the prior-year period, with mattress fabric sales up 12.2 percent compared with the second quarter of last year.
That 12.2 percent sales increase in mattress fabric sales came out to $40 million, compared with $35.7 million the year prior, which shows strong growth.
According to the company, the pandemic increased consumer awareness and appreciation for overall comfort and wellness within the home environment, which lead to an increase in discretionary spending on home furnishing products, including mattresses.
“We built on the momentum generated during the last eight weeks of the first quarter by utilizing our product-driven strategy for both mattress fabrics and sewn covers, as well as our global supply chain and dedicated attention to our customers,” the company said in a statement. “The strength and flexibility of our global manufacturing and sourcing operations in the U.S., Canada, Haiti, Asia, and Turkey enabled us to support current demand and serve the needs of our mattress fabric and cover customers.”
They also said the fabric trend is driven by the ongoing growth in the boxed bedding space, and that they expect that their increased capacity in North America will be available during the fourth quarter of fiscal 2021.
In Q4 of 2020, Culp got rid of its home accessories segment by selling its majority ownership interest in eLuxury, LLC, and according to the company, “the financial results for this segment are excluded from the reported financial performance of the company’s continuing operations and are presented as a discontinued operation in the company’s consolidated financial statements.”
A few other notable stats from the report:
- Net income from continuing operations was $2.4 million, up from $2.2 million the year before.
- The company’s financial position reflected increased total cash and investments of $56.5 million compared with a net cash position of $38.7 million as of the end of the fourth quarter of fiscal 2020.
- The company announced a five percent increase in its quarterly cash dividend to $0.11 per share, commencing in the third quarter of fiscal 2021. At an annual indicated dividend of $0.44 per share, the yield is 3.03%, based upon yesterday’s closing stock price of $14.50 per share.
