A director at Culp Inc bought 5,000 shares at 5.550USD and the significance rating of the trade was 52/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly showin...
Home furnishings demand remains challenged. As Culp’s FY24 drew to a close, sales declined in both of its segments (mattress fabrics -16.1% to $25.8 million and upholstery fabrics -22.6% to $23.8 million). Weak housing markets (home sales are a traditional driver of furniture ‘spend’), ‘exhausted’ consumers (many had refurbished their homes during the pandemic lockdowns), weather, and economic uncertainty all played a role, with little evidence of a near-term catalyst for improvement. Announced ...
Culp posted slightly better-than-expected results in a quarter characterized by very challenging industry conditions. 4QFY24 EPS of ($0.39) was roughly flat with the prior year ($0.38) and slightly ahead of our estimate of ($0.45), as both segments (mattress fabrics and upholstery fabrics) posted double-digit revenue declines in the face of very weak macro conditions for home furnishings. Weak demand for home furnishings remains the key challenge. In mattress fabrics (CHF), sales declined 16.1% ...
After Wednesday’s market close, Culp announced aggressive actions to ‘right-size’ capacity in CHF, its Culp Home Fashions (CHF) segment. CHF is the market leader and serves the mattress/bedding fabric market. In the face of persisting weak end market demand for mattresses, Culp initiated restructuring initiatives to right-size CHF capacity to match industry conditions for the foreseeable future. These actions will evolve during FY25 (began May). The bulk of the ~$8MM in planned restructuring cha...
We are cutting estimates on Culp, responding to weak demand, and bracing for a restructuring in 4QFY24. Culp’s 3QFY24 earnings report, issued Wednesday after the close, highlighted improved revenue and operating results, Y/Y and sequentially. Consolidated sales were $60.4 million, up 15% Y/Y and 3% sequentially, aided by a calendar shift in the Chinese New Year from 3Q to 4Q. Operating loss of $1.7 million improved from a loss of $7.8 million in 3QFY23 and a loss of $2.2 million in 2QFY24. Still...
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