Pre-tax income at Culp soars 21% in Q3FY16
Courtesy: Culp Inc
For the three months ended January 31, 2016, pre-tax income at apparel retailer Culp was $7.2 million, up 21 per cent compared with $5.9 million in the third quarter of fiscal 2015.
Net sales were $78.5 million, down 3.4 per cent year on year, with mattress fabric sales down 3.1 per cent and upholstery fabric sales too down 3.9 per cent in the third quarter of fiscal 2016.
“This compares with an exceptionally strong sales performance for both divisions in the third quarter last year,” a Culp press release stated.
Non GAAP adjusted net income reached $5.9 million, or $0.47 per diluted share, for the reporting quarter as against $5.0 million, or $0.40 per diluted share, for the prior fiscal's third quarter.
GAAP net income totaled $4.9 million, or $0.39 per diluted share vis-à-vis net income of $3.8 million, or $0.31 per diluted share, in the fiscal ago quarter.
The company purchased 110,776 shares of Culp common stock, representing nearly 1.0 per cent of outstanding shares, for $2.4 million at an average price of $23.79 per share.
Culp added that its financial position remained strong with cash and cash equivalents and short-term investments of $36.0 million.
“This was so, even after spending $19.6 million in dividends, capital expenditures, debt repayments and share repurchases through the first nine months of fiscal 2016,” the retailer observed.
The projection for the fourth quarter of fiscal 2016 is for overall sales to be comparable with the previous fiscal's fourth quarter.
Pre-tax income for the fourth quarter of fiscal 2016 is expected to be in the range of $6.7 million to $7.2 million, while pre-tax income for the fourth quarter of fiscal 2015 was $6.7 million.
“The projection for the full fiscal is for overall sales to be slightly higher than last fiscal,” Culp informed.
Pre-tax income for the full fiscal is expected to be $27.5 million to $28.0 million, compared with $23.0 million last fiscal.
The highest annual pre-tax income in the company's history was the $23.0 million achieved last fiscal.
CEO Frank Saxon said, “While we have achieved higher overall year-over-year sales through the first nine months of fiscal 2016, we did experience a slight drop in the third quarter.”
“We have remained focused on our top strategic priorities, which is to drive product innovation and creativity throughout our company and provide a product mix that meets demand,” he added.
“Our efficient and flexible manufacturing platform supports this strategy, and we continue to make the right investments to improve our operating efficiencies and overall capacity,” Saxon also stated. (AR)
Fibre2Fashion News Desk – India