Culp Inc.’s net sales dipped to $74.6 million for the second quarter of fiscal year 2022, down 3% from the same quarter in 2020.
Mattress fabric sales were up 2.1%, but upholstery fabric sales dipped 8.5% for the period.
However, in the earnings release, Culp announced a 5% increase in its quarterly cash dividend, to 11.5 cents per share, beginning in the third quarter of fiscal 2022.
The company’s net sales and consolidated operating income (income from operations) for the third quarter of fiscal 2022 are expected to be comparable to the second quarter of fiscal 2022., and the company expects a strong improvement in net sales and operating income for the fourth quarter of fiscal 2022.
“As previously announced, our results for the second quarter reflected lower than expected sales, primarily for our upholstery fabrics segment,” said Iv Culp, president and CEO. “Several external factors affected our sales results for the quarter, particularly COVID-related shutdowns in Vietnam and customer supply chain constraints for non-fabric components, while profitability remained pressured in both of our businesses by the continued rapid rise in freight, raw material, and labor costs.”
The company expects business to rebound in the beginning in the fourth quarter and continuing into the next fiscal year.